Most traders think having a big account equals greater success…
But in reality, that’s far from the truth!
If you are trading with a small account, you actually have a HUGE advantage in this market!
Right now we are seeing big play after big play…
And it doesn’t require you to be glued to your screen all day to take advantage of them.
In fact, those who make fewer trades by waiting for strong setups often do better…
Now, if you want to know how you can maximize your gains while trading less, then it’s critical you know these 3 things…
Table of Contents
Think Of It This Way…
Every trader needs to look for big percent gainers, no matter what the size of their trading account is…
This will help guide you on what your next move could potentially be.
All of my plays start somewhere, and that’s step #1 in my 7-Step Penny Stocking Framework…
And let’s face it, we all want to profit on the up-swing.
You see, if you trade penny stocks, memorizing my framework can help you realize that almost every penny stock follows the same path…
And almost every big percent gainer may have a story behind it.
It could be from news, promoters, short squeezes, you name it…
But that’s where you come in and investigate what could be causing that move.
Unfortunately, sometimes if there is a news play, you may already be too late to the party.
Trading with a small account, you want to capture the bulk of the move…
And many traders are fixated on watching the dollar profit, instead of watching the percent profit.
Sounds weird, right?
I’ll explain in a minute…
But in order to help traders maximize their profits with these moves, everyone needs to own StocksToTrade Breaking News
StocksToTrade Breaking News has been red hot and still, several traders aren’t using this tool.
Take a look at Environmental Tectonics Corporation (OTC: ETCC)
This stock was trading at $0.42 and after the news hit, it exploded up to $1.72!
But not every trader is going to nail the entry and exit perfectly.
I can tell you I definitely RARELY hit the exit perfectly…
Mainly because I always take quick profits, but it’s more about nailing the meat of the move.
For example, let’s say you have a $2,000 trading account and wanted to risk 10% on this trade at $0.50.
That’s a $200 risk and you would end up with 400 shares at that price.
Now, let’s say you sold your 400 shares at $1.20, that’s a 140% move!
I know, $280 doesn’t sound like a lot, but where else could you make 140% on any trade?
Tesla, Inc. (NASDAQ: TSLA) won’t offer you that, and neither will other big named stocks.
Remember, this is a marathon, not a sprint, and nailing the majority of the move on plays like this will help you grow your account in no time.
Why PDT Rules Aren’t A Bad Thing
Many of you may find it annoying how you are limited to what you can and cannot trade every day…
But think of it this way…
Is it really a guarantee that your next trade will be profitable?
Of course not, that’s why it may be a blessing in disguise for most of us.
You see, many of my students have found the Pattern Day Trader (PDT) rule to be an account saver….
As many of them have tried to scale their trades or were trying to trade too many opportunities without waiting for the best setups.
Trading is all about focusing on the best opportunities possible, period.
The PDT rule helps prevent overtrading, which is one of the most common problems that plague traders.
I know it’s hard to do this, but if you are just focusing on StocksToTrade Breaking News plays…
You will fall within the pattern day trading (PDT) guidelines.
And if there isn’t a StocksToTrade Breaking New play and you are focusing on big percent gainers…
More Breaking News
- Is Schlumberger Stock About to Soar or Stumble?
- Is Palantir’s Stock Ready to Skyrocket After Latest Army Deal?
- Bank OZK Stock Soars After Strong Earnings: What’s Next?
It may set you up for one of my favorite trades…
My Favorite Part
With any big percent gainer, I know exactly what is going to happen next.
You see, what goes up must come down with penny stocks…
And the sooner you realize it, the better you will be.
I say it over and over again, this all falls in with my 7-Step Penny Stocking Framework.
So as a stock is ramping up, I am looking for a potential break-out trade…
Or if it hit its peak, I am looking to dip buy, which I did with ETCC yesterday.
Take a look…
This recent runner from yesterday’s news set me up for a great dip-buying opportunity…
All of these massive moves will eventually panic, but remember if they don’t bounce…
You need to follow my #1 rule!
These plays are best when they are multiday runners…
That’s when I truly see most of the perfect morning panics.
Not every stock is going to continue to climb after its 300% run in a single day…
It will pull back, and that’s exactly what happened yesterday.
One More Thing
Trading with a small account has helped several of my challenge students understand how they can spot the best possible trades.
You don’t need to trade 25 trades a day to be rich…
What you need to do is be realistic with what you physically have to work with…
And what you can do to really maximize your profits.
If you think if you had money to trade with you’d be a millionaire in no time…
That’s just foolish, and what helps my students achieve that millionaire milestone is simply understanding the importance of trading small…
And knowing what’s working and not working in the market.
Until next time…
-Tim
Leave a reply