Challenge Webinar Top Penny Stock Trading Lessons: Key Points
- Beat overtrading by playing a mental game with yourself. See lesson #1.
- Losses can be your best teachers. See lesson #2.
- Want to stay in the trading game long-term? Don’t get too comfortable. See lesson #3.
How I Make $1,000s While Sleeping
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.
Everything I teach is to help students become self-sufficient traders. Last week we focused on overtrading, including these three counterintuitive lessons. Read to the end to find out what you’ll learn when you watch the replay.
Penny Stock Trading Lesson #1: How to Beat Overtrading
I have an overtrading problem. But compared to most full-time traders, I take very few trades. How do I do it?
I think of myself as a retired trader — albeit one who comes out of retirement almost every day to trade. People question it…
“Tim, what are you talking about? Why not just call yourself a trader or say that you trade?”
It’s a little mental game I play with myself. And it works for me. It makes me less aggressive. And it helps me to focus on only the best setups.
It’s also better for students…
Penny Stock Trading Lesson #2: How to Recover from Overtrading Losses
One student asked how to recover from a big loss after overtrading. After 12 weeks of steady growth, she lost an entire month’s worth of profits on one unplanned trade. This lesson is counterintuitive…
If you’re making money in a disciplined manner and then lose it all on an undisciplined trade, it should give you more confidence in the rules. (I trade using these rules.)
It sucks when you lose the money. But the money you make or lose in your first few months, or the first year, is negligible. The lessons you learn are infinitely more important.
If losing money on an undisciplined trade prevents you from overtrading in the future, it’s a good loss. Successful penny stock traders value losses.
To recover, go back to your trading plan. Trade with smaller position size or paper trade. Get back to the rules.
Here’s another counterintuitive lesson about overtrading…
Penny Stock Trading Lesson #3: Comfortable Is Dangerous
I actually do worse in a place with good Wi-Fi and air conditioning. When I sleep well, my trades are worse. When I get too comfortable the urge to overtrade rears its ugly head…
“What should I trade? Oh, I’ll trade this … and this … and this. ”
Before I know it, I’m overtrading and making stupid mistakes. Then I’m forced to put myself in timeout. My best day of 2022 so far was on a day that I felt terrible. I wasn’t looking to trade. The market forced me to trade.
Don’t look to get comfortable. Focus on studying so you learn the patterns. Study the past and gain experience. Trade scared so trading isn’t scary.
More Top Penny Stock Trading Lessons
Here are seven 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…
- What new traders can learn from pro athletes about game time. (And what the best athletes do when nobody’s watching.)
- Why explaining every detail about what to look for in morning panics won’t help the average trader. (And how to be above average in trading and in life.)
- Being wrong on any one trade is fine. Allowing a loss to turn into a big loss is bad.
- How slower markets provide better lessons. (Weird, but true.)
- The #1 way to understand risk. (It took me years to figure this out.)
- The hilarious reason why I assign burpees to Ellis Hobbs III. (Hint: Ellis, aka ArtOfWar, probably does burpees better than any other Trading Challenge student.)
- How to profit from thinking in opposites. (Or … the psychology behind buy low, sell high.)
There were at least 7 more lessons I didn’t mention here. And we created a watchlist live. That part of the webinar alone is worth watching it several times.
Are you ready to take trading to the next level? Trading Challenge students get access to live webinars and hundreds of archived webinars…
Take the Trading Challenge
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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