Key Points
- At the end of the day, unrealized gains are meaningless. See lesson #1.
- Bag holders and the C-suite may believe in a company — but that doesn’t change the pattern. See lesson #2.
- PLUS: A shortcut to get you watching the right stocks, right away. (It’s not free, it’s smart.) See lesson #3.
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Uncover “Moonshot” Stocks With the Potential to Run 55%, 98%, and Even 138% in Days
3 Top Penny Stock Trading Lessons
Every week I give a Trading Challenge webinar. They alternate between Q&A sessions and live-trading webinars.
Over time, lessons from webinars compound to grow your knowledge account. Come with questions and work to get better at trading penny stocks under $1.
Last week’s Q&A webinar started with a little rant. Too many people fail to take profits off the table. Why?
Because promoters and groupthink tell them to HODL. Let’s start there. Read to the end to discover what you’ll learn when you watch the webinar replay.
Penny Stock Trading Lesson 1: A Trade Is Not a Trade Until You Exit
This lesson isn’t limited to penny stocks…
Take bitcoin (BTC), for example. So many people are HODLing (not taking profits) while it’s getting destroyed. As I write, it’s trading 40% off its highs. And almost nobody took profits. Frankly, it’s disgusting.
Remember I warned in Nov how bad $BTC $ETH #Bitcoin #Ethereum would get, not due to #cryptocurrency but due to too many #crypto promoters who are like corrupt penny stock promoters telling newbs to hold & hope. As $LTNC $GGII $HMBL $VPER $OZSC proves, TAKE PROFITS INTO STRENGTH! https://t.co/WdcWS9qiZ9
— Timothy Sykes (@timothysykes) January 10, 2022
In the past, these HODLers got rewarded for ‘holding on for dear life.’ That’s what HODL stands for. It could be one of the most irresponsible terms in the history of finance. I know it has paid well for some, but you need to take profits.
A trade is not a trade until you exit.
I don’t care how much you have in unrealized profits. I’ve been around for 20+ years. I’ve seen so many people with millions in unrealized profits. They don’t take profits, and it becomes worthless. Sometimes it even turns into losses.
Penny Stock Trading Lesson 2: See the Pattern for What It Is
Last week when Enzolytics, Inc. (OTCPK: ENZC) re-spiked, all these idiots on message boards were saying, “ENZC is coming back.”
If you go through a thousand charts of promoted stocks, you’ll see it. When a former supernova spikes again, the third day often ends red. But a lot of brainwashed newbies believe in this company. They don’t see the pattern for what it is.
The hilarious thing is that the company COO tweeted at me. I’ve never even talked to the guy. The gist of it is that he wants me to be more positive about the company.
Why? Why should I be positive about your piece-of-crap company?
(It has nothing to do with whether I want your company to succeed.) It’s the height of all laziness and idiocy to ignore thousands of historical examples. It exemplifies my teachings to a T…
✔ It has a ton of promoters.
✔ There’s a ridiculous amount of hype.
✔ It had a perfect supernova in early 2021.
✔ The entire 7-step framework is clearly defined.
Check out the chart…
It’s not an exact science, but when these things re-spike, it’s often muted. It’s like a bouncing ball. Each bounce is lower and lower.
Recognize the pattern for what it is. It will save you a lot of frustration.
Penny Stock Trading Lesson 3: Use the Tools Created To Make Your Life Easier
This lesson comes from a question about how to find promoted stocks…
Your life is much easier now than when I was creating my early DVDs and video lessons. I had to sign up for all these different newsletters. I had to do a ton of manual scans.
You don’t have to go searching. StocksToTrade and the STT Breaking News Chat feature have everything you need built in. This is why I say you should use it. It blows my mind that many of you don’t — especially StocksToTrade’s Breaking News Chat.
I get this question almost daily: “How do you find these stocks right at the open?”
STT Breaking News alerts them all. It does the heavy lifting. Not every alert is a home run. But it gets you watching the right stocks.
More Top Penny Stock Trading Lessons
Here are 7 more lessons to look for when you watch the webinar. Trading Challenge students can watch the replay here. Apply for the Trading Challenge below.
7 More Penny Stock Trading Lessons
Miss the webinar? Here’s what you’ll learn when you watch the replay…
- How to grow your knowledge account exponentially. (Hint: This is exactly what I’d do if our roles were reversed.)
- Think the metaverse is the next big thing? Think again. Find out which futuristic 2009 movie sums it up. (Sorry to be the bearer of bad news…)
- Benjamin Franklin never said, “A penny saved is a penny earned.” Why the coupon clipper mindset keeps 95% of people poor…
- The top 2 patterns for new traders in the current market. (Apart from using it to learn, you don’t need to watch the market most of the day.)
- The truth about warrants and why I almost never trade them. (And the exception to watch for that many traders don’t know.)
- Do you have too many stocks on watch? What to look for to take a stock off your watchlist.
- PLUS: how to organize your watchlist to keep the plays with the most potential near the top. (It only takes one click of the mouse…)
I have at least 37 more trading lessons I didn’t mention here. I can’t encourage you enough to show up every week with solid questions.
Ready to take your trading to the next level? To access the live webinars and hundreds of archived webinars…
Apply for the Trading Challenge NOW
Live webinars separate the Trading Challenge from our stand-alone products and newsletters. Every week there are two to four live webinars from mentors like Tim Lento, Mark Croock, Matt Monaco, and me.
Want more penny stock lessons from Trading Challenge webinars? Comment below, I love to hear from all my readers!
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