Trading penny stocks isn’t an exact science. There are multiple indicators you MUST consider for every trade.
Too many people focus on one or two indicators. You can’t afford to ignore any of my seven indicators. And you have to go even deeper. It’s not just a ‘yes’ or ‘no’ with each indicator. Each indicator gets a grade.
In trading, the biggest money is in the smallest nuances.
See my attention to nuance tomorrow, February 24, when you…
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Today’s lesson is about trading nuances…
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, the lessons compound to grow your knowledge. Come with questions and work to get better at trading penny stocks.
Last week we focused on the nuances of trading. Here are three trading lessons from the webinar. Read to the end to discover what you’ll learn when you watch the webinar replay.
Penny Stock Trading Lesson #1: Show Me the Nuances
When students come to me with hypothetical trades focused on only one thing, I laugh. All your hypotheticals are BS. You want an exact science when you should be looking at nuances.
For example, a lot of newbies focus only on the pattern. If that’s you, you’re ignoring too many things…
- What’s the overall market doing?
- What sector is the stock in?
- Is it an OTC or a listed stock?
- Is it a former runner?
- If it’s an OTC, is it a hot market for OTCs?
- What’s your experience? Have you traded during a market crash? Have you traded during a war?
- Are you trading with strong Wi-Fi? Or are you on a plane where the Wi-Fi is less stable?
- What’s your account size? Are you trading with a small account or do you have a six-figure account?
- Is it a low float stock?
- What’s the volume?
- What time of day is it? Are you trading at 9:45 a.m. … or 3:45 p.m.?
- What’s your personal schedule? Are you working a 9-to-5? Do you have to catch a flight?
- What’s the catalyst?
- Did StocksToTrade Breaking News alert it? Or did you find the news on your own?
- And so on and so on and so forth.
Stop trying to turn this into an exact science. That’s not trading. You MUST understand that every play is a little different.
Start here…
Penny Stock Trading Lesson #2: A Recipe for Successful Trading
This might sound weird, but bear with me. Let’s compare trading penny stocks to making lasagna.
Would you make lasagna with only cheese? No — it wouldn’t be lasagna. It would just be melted cheese. You need the meat. You need the pasta and the sauce.
Trading is similar to cooking complex recipes…
For example, I never look at the Level 2 alone. I never just look at volume alone. Instead, I look at the Level 2, the chart, the news, and the market.
Look at all the indicators in conjunction with the other indicators.
I can’t tell you how often I hear newbies ask, “Why didn’t the stock spike? The news was good!”
Maybe the news is already priced in. Or maybe the Fed commented and the overall market dropped. Or geopolitical tensions ramped up, like yesterday. Again, it’s about nuances.
First, you have to learn all seven indicators…
Maybe what you notice today is the pattern. Congratulations. You’ve learned one of the seven indicators. Now study — and memorize — the other indicators.
Where can you learn the seven indicators? Check this out…
Penny Stock Trading Lesson #3: Study the Trader Checklist
For a quick overview, study the basics of the Sykes Sliding Scale.
Then go through the Trader Checklist. It’s a FREE guide explaining how to find and plan the best trades.
Once you’ve watched the Trader Checklist guide, use the Sykes Sliding Scale for FREE here.
There’s no excuse for NOT using this free tool…
“What if I’m wrong?” Learn from it. That’s how trading works. I’m wrong sometimes. We’re all wrong sometimes.
“What if it slows me down and I miss a trade?” Good! Slow down. Learn before you risk your hard-earned money. The market will still be there. Will your account still be there? Or will your lack of preparation lead you to blow it up?
More Top Penny Stock Trading Lessons
Here are three more lessons to look for when you watch the webinar. Trading Challenge students can watch the replay here.
Apply for the Trading Challenge here.
3 More Penny Stock Trading Lessons
Here’s a taste of what you’ll learn when you watch the replay…
- Why short sellers are like angry vegans. (And how you can use this knowledge to identify short squeezes.)
- The biggest OTC supernovas of 2021 were all pumped by the promoter who got arrested. Are rumors he’s flipping on other promoters true?
- Your assumptions about any individual stock don’t matter. (PLUS: How adjusting your expectations leads to a better outcome.)
There were another 20+ questions asked — and answered — in last week’s webinar. 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…
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!
The post Challenge Webinar Top Penny Stock Trading Lessons: Show Me the Nuances! appeared first on Timothy Sykes.