Challenge Webinar Top Penny Stock Trading Lessons: Key Points
Special thanks to Bryce Tuohey for this week’s top lessons…
- Lesson #1 explains how Bryce created his own process. Hint: Anyone can copy Bryce’s refinement strategy.
- Experienced traders often say, “Let the trade come to you.” But what does it mean? See lesson #3.
- PLUS: Bryce reveals his top recommended pattern for new traders.
All My Top Students Have THIS In Common
5 Top Penny Stock Trading Lessons
Every week I give a Trading Challenge webinar. They alternate between Q&A sessions and live-trading webinars.
Once a month, I also give an all-day trade-a-thon. On those days, it’s a mix of Q&A and live trading. Last week’s webinar was one of those.
Unfortunately, I woke up feeling like death. The day before I was on a flight with a cat sitting behind me. I’m highly allergic to cats!
The cool thing is that four top students filled in. Bryce covered the morning session. Then Matt, Kyle, and Huddie joined him for the afternoon session…
I still feel like death, but thanks for all the kind wishes! I REALLY have to thank these badass millionaire https://t.co/occ8wKmlgm students turned masters @mono_trader @traderkylec @MikeHuddie & upcoming millionaire @TraderBryce for filling in & giving a GREAT all-day webinar! pic.twitter.com/uNTFhA8DbH
— Timothy Sykes (@timothysykes) December 10, 2021
It’s impossible to include all the penny stock trading lessons from the webinar in one post. So I chose five from the morning session…
Lesson #1: Journal to Refine Your Process
Refining your process over time is key to trading success. How did Bryce do it?
“For me, it was journaling. I would journal my emotions when I was in the trade, how well I played the pattern, and what I did right and wrong.
“Then I was able to refine everything I did right and cut out what I did wrong. I also traded with a super small position. Those are the best things I did to help me focus on the process over profits.”
Lesson #2: How to Trade a Trend Break
Bryce’s trading style differs from mine and that’s OK. You should take things from different traders and make them yours. Here’s what Bryce said about his Biofrentera Inc. (NASDAQ: BFRI) live trade…
“Multi-day trend breaks are one of my favorite setups. They provide good risk/reward and allow me to scale out of my position into the morning spike.
“I bought the high-of-day break after it dipped and held VWAP. I only took a small size since I had a wider risk. Then volume came in and I got the multi-day trend break I was looking for.
“BFRI exceeded my goals, so I had no problem selling into strength.”
Watch the Webinar to See Bryce’s Trade Details
Lesson #3: Let the Trade Come To You
Forcing trades leads to frustration. You could get lucky but over time it’s a losing strategy. Here’s what Bryce had to say…
“Letting a trade come to you means you don’t chase spikes or force trades. Wait for your pattern to present itself.
“For example, my ideal intraday setup is a strong morning runner. Before I enter, I like to see a very clear risk level. I like to see tight consolidation — ideally near VWAP. Then I wait for it to break out of its range to the upside.
“My goal is to get an entry close to a support level. That way I have a tight risk. I also look at float, volume, and the daily pattern.”
Lesson #4: OTC vs. Listed Stocks
For me, OTCs are easier. Bryce prefers listed stocks. He explained why during the webinar…
“When OTCs are super hot, I don’t have a problem trading them. But right now I don’t see a lot of the setups I’m comfortable trading in that market. Here’s why I prefer listed stocks…
- Minimal slippage using market orders.
- You can take advantage of quick spikes.
- Orders get filled almost instantly.
“There are pros and cons for each market. Test and tinker to see what you like best.”
Lesson #5: Bryce’s Top Pattern for New Traders
When asked about his top pattern for new traders, here’s what Bryce had to say…
“I love multi-day trend breaks, but it takes a bit more experience. That’s why I recommend new traders start with multi-day breakouts.
“Breakouts are easy to spot on a chart. But sometimes the intraday patterns mean wider risk. Start with small positions and small risk — that’s how I started.
“Focus on the process, not the profits. Then track data on the setups and your trades.”
More Top Penny Stock Trading Lessons
Keep in mind this post only scratches the surface. Bryce, Matt, Huddie, and Kyle went more in-depth with their explanations.
Also, there were at least 25 more trading lessons during the webinar. With that in mind…
5 More Penny Stock Trading Lessons
When you watch the replay, look for these lessons…
- A powerful risk management test for new traders you’ll never hear about from promoters or free chat rooms.
- Bullish or bearish? The simple indicator Bryce uses to answer this question on an intraday chart.
- The newbie mistake that commits one-quarter of your risk to the bid/ask spread.
- 3 criteria Bryce needs to see before he’s willing to take a bigger position.
- PLUS: The market psychology observation Bryce uses to prepare for power hour.
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, 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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