Do you feel like you want to rip your hair out every day you trade?
Trust me, I know how that feels…
Being in this industry for over 20+ years, I learned a lot about trading penny stocks…
And everything I learned has helped me develop a proven strategy that can help you find some of the best opportunities in the market.
So if you’re tired of not knowing where to start every morning, you’re going to want to read what I have to share with you today.
Table of Contents
Having A Strategy
Picture a ship sailing aimlessly in the ocean without a navigational chart.
Similarly, trading without a strategy is akin to sailing in the ocean without a destination in mind.
Your strategy acts as your compass, guiding your decision and actions…
Defining your approach, risk management, and overall goals.
Most newbies don’t want to take the time to learn a strategy, they’d rather just have the hottest picks…
But that’s not going to help you if you don’t have a strategy to apply it to.
Every morning my strategy surrounds stocks that are big percent gainers…
Whether it’s a StocksToTrade Breaking News Alert or just a giant short squeeze, that’s my main starting point…
Once I spot that, I’ll be looking to either buy a potential break out or dip buying opportunity…
Here’s an example of how spotting this big percent gainer helped me prepare for what I was going to do next
Dip buying it.
Red Cat Holdings, Inc. (NASDAQ: RCAT)
Take a look at the chart, the stock wasn’t doing anything until the afternoon when it spiked up…
That’s what caught my attention, the big spike in the afternoon hours…
I remembered not to chase, that’s not part of my strategy, but dip buying is and I know that with these stocks that spike, there could be a perfect opportunity to dip buy before the close.
I entered my trade at $1.25 and exited at $1.34 for a 7.2% profit. (Risked $6,250)
Remember, having a well-defined strategy will help you navigate the markets with confidence and consistency…
But you need to be prepared to spot those opportunities to be able to apply it your strategy.
Being Prepared
Trading is not a game of chance, but a skill that requires preparation and discipline.
Just as a building requires a strong foundation to stand tall, so does your trading journey.
Way too often traders are looking to take shortcuts, they don’t want to study…
They don’t want to practice…
They don’t even care about how much they should risk…
All they want is to make money and a lot of it as quickly as possible.
I hate to break it to you, but that’s not going to happen if you don’t know what to look for or how to apply it to your overall strategy.
Every morning I make sure I have StocksToTrade Breaking News open, I have my watchlist going, and I’m scanning the market for anything new.
Yesterday, I had so many traders ask me about U Power Limited (NASDAQ: UCAR) and how traders were able to spot it so quickly…
Here’s what I showed them.
Unfortunately, most traders who missed this weren’t prepared enough to spot this trade.
When a trade like this comes around, you can buy it at the time of the alert and take profits along the way…
More Breaking News
- American Airlines Sees a Surge: Market Shifts in Focus
- FTAI Stock Surges: Can the New Capital Strategy Keep the Momentum Going?
- Was Delta’s Recent Uptrend a Hint for a Strong Year Ahead?
But I also know that it can potentially offer opportunities as it starts to come crashing back down to earth.
Dissecting Information
In an era of information overload, it’s important to know how to sift through everything.
Penny stocks will continue to offer you opportunities, and right now we are seeing a ton of trades out there for you to take full advantage of.
You gotta love this trader's market, we've been waiting for this kind of volatility for what feels like forever, even though it's just been a few months and we're all just still spoiled from 2020/2021. Tell me, are you loving this action as much as I am!?!?!
— Timothy Sykes (@timothysykes) June 20, 2023
Understanding the basic fundamentals of trading and knowing what to look for and what to do next is going to help you along the way…
And if you don’t have a detailed process of where to start or finish, things can get a little dicey.
What I encourage all of you to do is start by focusing on the big percent gainers…
And if you happen to miss the spike up, be prepared to dip buy and be sure to know where the key support and resistance areas are.
Start small and don’t trade big…
Once you have built that foundation and understand my strategy, things will start to become a lot clearer.
I’ll see you in chat.
-Tim
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