Trading Penny Stock Trading Lessons: Key Points
- If financial experts can’t make accurate predictions, should you even try? See lesson #1.
- Change your mindset about bear markets (and all markets.) See lesson #2.
- How to overcome the desire to be a market seer. See lesson #3.
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3 Top Penny Stock Trading Lessons
3 Top Penny Stock Trading Lessons
During last week’s live trading webinar, I didn’t trade. It brought up a lot of misconceptions.
This week’s trading lessons focus on stock market predictions. Read to the end to discover what you’ll learn when you watch the webinar replay.
Penny Stock Trading Lesson #1: Prediction Leads to Frustration
Too many traders try to make predictions. Experience tells me not to do it. Why? Let’s break it down…
There are people with a ton of knowledge and data trying to predict what will happen next. Most of the time they get it wrong.
Here’s an example…
In late June, Federal Reserve Chair Jerome Powell was still calling inflation transitory. Five months later, the Fed had changed its tune. Powell admitted it during a November 30 hearing of the Senate Banking Committee…
“I think it’s probably a good time to retire that word and try to explain more clearly what we mean.”
What about top hedge fund managers? Are they any better at predicting?
ARK Invest CEO Cathie Wood titled a December blog post “Innovation Stocks Are Not in A Bubble: We Believe They Are in Deep Value Territory.”
The ARK Innovation ETF (NYSE: ARKK) is down 22.5% since the post and 53% in the past 12 months. Keep in mind that she has a LOT more data than you and I ever will.
What about the pundits making predictions on CNBC? Mostly wrong. Stop trying to predict.
Penny Stock Trading Lesson #2: Bear Market Predictions
During the webinar, a student asked, “How long do you think a bear market will last?
Who cares? Again, don’t try to predict. A bear market could last a month or 12 months. It could last a decade. Every single market is different. It doesn’t fit into a neat little box.
I have to de-brainwash students from their degenerate gambler tendencies. It’s possible to make money in bull markets and bear markets. But be wary of anyone who says to hold through the frustration.
What should you do instead of trying to predict?
Penny Stock Trading Lesson #3: Study Top Traders’ History
Better odds of success come when you study history, NOT when you try to predict how long a bear market will last. Or whether you should be short selling now. Or if inflation is going to slow down or speed up.
All the predictions are BS. Again, it’s not just you. It’s people with WAY more data and experience.
Study history, and not just market history. Study how top traders navigate different markets. Trading Challenge students have access to thousands of video lessons. There are hundreds of archived webinars by me and the other mentors. Use them to your advantage.
Here’s an example I mentioned in the weekly watchlist yesterday…
Jack Schwarze watched every Tim Grittani webinar at least three times. He learned how Grittani trades different stocks in different markets. Check out Jack’s profit chart.
Here’s another example…
Mark Croock watched every video lesson three times. He didn’t wait until he was a profitable trader. He watched them before he reached the six-figure milestone. In doing so, he literally watched me adapt. He saw a history of me trading different markets. Take a look at Mark’s profit chart.
Jack and Mark refined the strategies they learned from me and other top traders. Now they adapt when the market shifts. They don’t try to predict — they react. I encourage you to do the same.
More Top Penny Stock Trading Lessons
Here are 7 more lessons to look for when you watch the webinar. Trading Challenge students can watch the replay here.
Apply for the Trading Challenge here.
7 More Penny Stock Trading Lessons
Miss the webinar? Here’s what you’ll learn when you watch the replay…
- A surefire way to beat the urge to overtrade. (And what helped me finally become a disciplined trader.)
- Why bubbles are bad for newbies. (And when to trade scared…)
- Another reason Fridays are special — even in an ugly market.
- Why I wouldn’t take long-term plays right now even if it was my main strategy. (HINT: It has nothing to do with the fact that day trading strategies work in any market.)
- The difference between morning and afternoon breakouts.
- Why trading rules don’t change no matter the market conditions. (This is the reason why so many newbies who made money in early 2021 lost it by the end of the year.)
- Promoters pump, newbies believe, the stock falls, and newbies hold & hope. Discover why THIS is the biggest problem legit trading teachers face.
There were at least 12 more trading lessons I didn’t mention here. I can’t encourage you enough to show up every week with solid questions.
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. My webinars 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. Be sure to watch every webinar to stay current on what’s working now.
Ready to take your trading to the next level? To access the live webinars and hundreds of archived webinars…
Take the Trading Challenge
Want more penny stock lessons from Trading Challenge webinars? Comment below, I love to hear from all my readers!
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