Challenge Webinar Top Penny Stock Trading Lessons: Key Points
- Think a first green day is all about the candle color? Read lesson #1 below.
- What NEVER to assume when a news alert pops up. Check lesson #2.
- PLUS: Why perfection is the enemy of progress. See lesson #3.
Click below to discover…
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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.
Last week we focused on first green day essentials, common misconceptions, and the importance of gathering data. 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: First Green Day Essentials
The first green day pattern does not apply to a stock up 3%, 5%, or even 10%. It’s not just the color of the candle — you want it to be a big percent gainer. If a stock is up 50% or 70%, I might buy and hold it overnight.
Ideally, you want a news catalyst. And you want it to be on some traders’ radars, but not everybody’s radar.
Some people say, “But Tim, I wanna trade the stock before it spikes big. How do you find it before it spikes?” I don’t.
For the first green day setup, I don’t want to be in it before it spikes big. I want it to spike and hold the spike. If the news catalyst is good enough, it could spike big on day two. It’s a continuation pattern.
So if a stock is up 3% or 5% and you’re calling it a first green day, you’re looking for a reason. You’re being a degenerate … desperate to trade. Don’t be that way.
Penny Stock Trading Lesson #2: Not All News Alerts Are Created Equal
How do you know which news alerts will spike a stock? You never know 100%. That’s why it’s key to focus on the process at first.
For example, there are a lot of alerts from StocksToTrade’s Breaking News Chat. So you have to watch and learn.
- Is the stock a recent runner?
- When it spiked last, was the news similar?
- Is it news about something that’s been hot lately? (Think metaverse or NFTs.)
- How is the market reacting to the news?
When you get the StocksToTrade Breaking News Chat add-on, you shouldn’t trade every alert. But you should learn from every single alert. Eventually, you’ll have a better idea of what news spikes stocks. Even then you won’t be right 100% of the time.
Penny Stock Trading Lesson #3: Trading Is NOT An Exact Science
Everybody wants to be a perfect trader, at least in the beginning…
A lot of students say, “I don’t want to hesitate. I wanna take profits at the right time. I wanna find the right balance.”
I’ve been doing this for 20+ years and I still get stuff wrong. I recognize I’ll be off sometimes. This isn’t an exact science. To get better at trading, keep testing. Keep tinkering. Get more experience and track your data. The data will show you what you need to know.
Tim Grittani, Jack Kellogg, and Kyle Williams all use spreadsheets. They track everything. And they can tell you their winning percentage on any given pattern they trade.
Stop trying to be perfect.
“Perfection is the enemy of progress.” — Winston Churchill
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…
- The Sykes Sliding Scale uses seven indicators to judge a potential trade. In last week’s webinar, I revealed which three to look at first. (And why…)
- Why starting with a big account is disastrous for most traders. (And why I don’t have time for sarcasm in Trading Challenge webinars.)
- The difference between OTC and Nasdaq stocks that most traders miss. (Hint: It has nothing to do with SEC filings, market cap, or even when the stock can trade.)
- The “Karate Kid” technique that could mean the difference between consistently winning and never getting it. (And how I can be your Mr. Miyagi if you learn to do THIS.)
- Why you should be on Twitter. (It’s most definitely NOT to find stock ideas from shady Twitter pumpers.)
- Why you’ll never become a billionaire using my strategies. (But “F*** You” money is a real possibility. Imagine, no more being fake nice…)
- Penny stock promotion 101 … and when you NEVER want to be in a stock.
I have at least 9 more trading lessons not mentioned here. And I took a live trade. Even though it was a small loss, you can learn from my running commentary. 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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