Here's something that may make more sense after tomorrows price action
@Tumbleroll
Trading strategies involving news announcements can usually be broken down into two broad types. The news was either expected or it wasn’t. Both require you to take different approaches if you are going to control risk. The news is the most common
catalyst of momentum plays for penny stocks.
The nuts and bolts of momentum plays are pretty basic, but the approach to trading them requires having your strategy already in the pocket. You do not want to be caught too early or too late, and you do not want to be holding a momentum play for too long.
If you have done extensive research and expect news, and the chart tells you that the stock is ready to breakout with some volume your goal is to get in early. The problem with TND is the volume has dried up, some have been holding waiting for news to sell out.
If you'd got in early you'd sold before the any news came out back in Feb. Getting in early is the risk especially if news never delivers what has been anticipated or it comes out earlier than you expect. Most news and announcements are
underwhelming. If you sell into the pre-release rise in share price you protect yourself. There might be a handful of cases where the news makes the stock explode, or the news is the trigger for a promotion.
However, these are probably the exception and you’ll save yourself from some
hard losses when the news comes out and the
market sighs.
