One out of four trades I place will be a loser…
While that might seem impressive to some folks…it’s not the reason I’ve managed to stay consistently profitable year after year.
After all, I know of some traders who only win one out of four trades they place.
At the end of the day, your profits have to be larger than your losses.
That’s what defines success in this game.
Win/Loss percentage is just a vanity number.
Going on a cold streak can suck…but it’s not nearly as worse as taking a devastating loss that cripples your account.
Confidence plays a major factor in trading. It can mean the difference between playing big on a great setup…or limping in because the fear of a loss have you paralyzed.
Today, I want to talk more about how you can improve your confidence.
And hopefully, next time, when you see that great setup, you do your best to maximize that opportunity…instead of playing the woulda…coulda…shoulda speech to yourself.
Focus On The Big Picture
Do you remember the first trade you’ve ever made?
Maybe you were a little nervous…
Unsure if it was the right move.
Maybe you got lucky and profited, or you, unfortunately, lost money not knowing why the stock went down.
Trading can make you feel like you’re on a roller coaster of emotions…
One bad trade after another can really take a stab at your confidence with anything you do.
If your trades are failing one after another…
Maybe it’s best you just take a step back and take in the big picture…
And see what’s really happening in the market…
Because frankly, it could play a pivotal role if you end up profiting, or not.
But unfortunately, many traders aren’t willing to put forth the time and effort to know when’s the right time to buy or sell…
You see, there are several factors that can alter your trade one way or the other…
Whether it’s Breaking News or Promoters pumping up the stock…
Or global news that can send the overall market into a complete tailspin, just as COVID did.
You need to be aware of what’s been happening in the market and what’s currently working.
Usually, I like to look at the Invesco QQQ Trust (NASDAQ: QQQ)…
And right now, the market is bouncing nicely over the last few weeks…
So once you’re aware that there may be a little bit of a bullish approach in the market, the next step to boost your confidence is to find the right pattern that works…
And start small and grow from there.
I recommend mastering the 7-step penny stocking framework, it paints nearly a perfect picture of what every trader should look for in a trade…
Especially if you are new!
You see, no trader should be focused on hitting a grand slam…
Instead, you should be focused on locking in singles every single time.
I tell every student that small profits do add up and if you risk more than you normally do…
You could easily wipe out all of your gains, plus some.
So instead of trying to go big or go home…
Just work on mastering this…
Try To Master This
Throughout my career of trading penny stocks, I’ve stuck to the same pattern almost every time.
Why?
Because I am confident that I know I am going to nail this trade majority of the time.
Think about it, if you weren’t confident in something, would you be willing to risk anything to try it?
Of course not, you want to go into something knowing how to have the odds in your favor…
And you can achieve that simply by mastering one strategy at a time.
And the strategy I recommend is Dip Buying.
Over the last several weeks, StocksToTrade Breaking News has proven itself over and over again…
So I am confident that every time I get an alert, there is a good chance that stock will go up.
But I’ve been noticing even more morning spikers as of late…
Here are a few examples:
- BigBear.ai Holdings, Inc. (NASDAQ: BBAI)
- ReShape Lifesciences Inc. (NASDAQ: RSLS)
- Heart Test Laboratories, Inc. (NASDAQ: HSCS)
here’s my plan after I spot them…
And as the stocks continue to spike, they will eventually panic.
It’s just part of the life cycle for these penny stocks…
So as they panic, I will look for the stock to turn…
I usually look for key support and resistance areas and also keep on my level 2 guide to help pinpoint where the stock may turn.
And if they don’t bounce, just remember to follow my #1 rule.
So as you continue to practice, do it with confidence…
Remember, even my most recent millionaire student Bryce Tuohey didn’t have a profitable month in nearly two years…
More Breaking News
- ParaZero Technologies: Soaring Stocks or Volatile Venture?
- RXRX Stock Surges with Promising Trials: What’s Next for Investors?
- D-Wave Quantum’s Rollercoaster: Is It a Dip Worth Riding?
But if you put forth the time and effort, it will help you understand how this pattern works.
Plan Ahead
You always want to think ahead on what your next move is going to be….
This can help you determine if the strategy you are using is the right one.
If you never start by seeing what is happening in the overall market, your strategy could be as good as dead…
But when I was starting, I focused on one pattern…
Started small…
And built my confidence by practicing it over and over again.
So as we kick start another crazy trading week, I hope you’re prepared!
Now let’s buckle up and let’s capitalize on these dip buys together!
Until next time…
-Tim
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