Challenge Webinar Top Penny Stock Trading Lessons: Key Points
- There are no set rules in trading, but there are signposts to guide you. See lesson 3.
- Lesson 2 is too important for Huddie to EVER live this down…
- PLUS: There’s a time to be aggressive and a time to back off. See lesson 1.
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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, lessons from webinars compound to grow your knowledge account. Come with questions and work to get better at trading penny stocks under $1.
Last week we used a live trade to explore the nuances of OTC breakouts. And, as always, there was plenty of student Q&A. 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: Get In Tune With the Market
A lot of people learned from early 2021. They weren’t aggressive enough in the hot market. When they finally got the guts to be aggressive, the market had changed. That’s when you should be less aggressive. This is trading.
Your whole goal is trying to get in tune with the markets. You want to get aggressive when there are plays and back off when there are none. Too many people aren’t aggressive enough when there are plays and too aggressive when there aren’t plays.
Once you’re in tune with the market, take advantage of the opportunities the market gives. Learn from Huddie…
Penny Stock Trading Lesson 2: Don’t Go Snowboarding During the Hottest Market in Decades
In February 2021 — arguably the hottest month in the entire bubble market — Huddie tried to plan a big snowboarding trip. I warned him and other top students to not go…
You don’t go snowboarding when it’s the hottest market in decades! Don’t go anywhere.
When the market’s hot, there are SO many opportunities. That’s when you clamp down. Focus and show up prepared every day to take what the market gives you.
A slow market like this is the time to study, work out, or go snowboarding.
But Huddie didn’t know what he didn’t know — he didn’t have perspective. I’ve seen enough to know when it’s a hot market and when it isn’t. And I’m here to pass down two decades of lessons.
Penny Stock Trading Lesson 3: Judge Every Trade Individually
During webinar Q&A, a lot of students ask me specifics about my trades. They want to know things like whether I buy on the bid or ask, and why I buy some breakouts and not others. They’re looking for exact rules for every trade.
Every trade is different. There are no set rules.
Know the plays and the patterns but consider all the indicators. What’s the market doing? How does the stock move? What’s the news or catalyst? Use my “Trader Checklist” guide and the Sykes Sliding Scale to help you judge every trade individually.
More Top Penny Stock Trading Lessons
Here are 12 more lessons to look for when you watch the webinar. Trading Challenge students can watch the replay here.
Apply for the Trading Challenge here.
12 More Penny Stock Trading Lessons
Miss the webinar? Here’s what you’ll learn when you watch the replay…
- When to give an OTC breakout time … and when to walk away. (Get my entire thought process on a live trade in real time. This lesson alone is worth watching the webinar at least three times.)
- 3 key indicators to use when deciding whether to build around a position or go for a quick in-and-out.
- Knowing when to get out of a trade is only a matter of price, right? WRONG! 2 key price-action clues signal holding through, or adding on, a dip.
- The art & science of using Level 2 data on OTCs to identify when other traders are accumulating shares. (Study up! Knowing this can be the difference between a small loss and a BIG win.)
- This simple trading strategy let me lock in a 4.9% win for $324 in profit. (And then buy the stock again 20 minutes later for an almost risk-free weekend play.)
- “I beat you by a little bit!” The one-upmanship game traders play. (And how to use it to your advantage.)
- Missing fills can be frustrating. But did you know it can also teach you important nuances about potential breakouts?
- What to look for in an ugly market that signals GREAT news for an individual stock.
- Why trading OTCs without THIS is like going into battle with a butter knife.
- The two most important short-selling words EVERY long trader should know. (And why you MUST study short selling to help maximize your long positions.)
- How to know when there are too many short sellers in a play. (Hint: It has NOTHING to do with short interest data.)
- Repetitive trading losses suck but can actually help your trading if you’re willing to do THIS.
I have at least 21 more trading lessons I didn’t mention here. 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!
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