5 Top Penny Stock Trading Lessons From The Weekly Challenge Webinar

5 Top Penny Stock Trading Lessons From The Weekly Challenge Webinar: Key Points

• Top lessons from trading a former supernova LIVE…
• What you MUST do when stocks don’t spike…
• The top pattern I look for every Friday…

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My Trading Challenge is my most comprehensive trading education. Here’s your chance to get a sneak peek inside my latest live trading webinar. See how my mindset shifts as patterns unfold in real time. Read on for must-know trading lessons from the webinar.

5 Top Penny Stock Trading Lessons

Every week I give a Trading Challenge webinar. Some are Q&A sessions. Others are live-trading webinars.

Last Friday was a live trading webinar. But understand that I don’t plan trades in advance. There’s no way for me to know when or if there’ll be a good trade.

I put myself in a position to capitalize by coming to the market prepared. And when I see one of my setups, I react.

The perfect trade came along and I was ready…

Lesson #1: When Stocks Don’t Spike, Do This…

Before I get to lessons from my live trade, I have to cover an important lesson from my Friday morning trade…

In my webinar, a lot of students asked about Osceola Gold, Inc. (OTCPK: OSCI). It was a big spiker on Thursday, and it closed near its highs. But I warned students not to hold it. Why?

The stock had a little intraday breakout right before the close. But instead of continuing higher, it failed. That’s not what I like to see. And that move set up the morning panic the next day…

I dip bought it, but it didn’t bounce and I took a small loss. (See my trade here.)

Morning panics and bounces haven’t been working well. So I adapted to the market and cut losses quickly.

NOTHING has to bounce, so many of you think this is an exact science, you can be wrong on any trade, accept that and adapt. For this very reason, I hate seeing people follow these BS promoters, they stand for everything that trading is not & if you break the rules you get crushed

— Timothy Sykes (@timothysykes) November 19, 2021

Lesson #2: Recognize Former Runners

If you weren’t around when HUMBL, Inc. (OTCPK: HMBL) ran in February, study the past!

A look back at the chart shows it went on a multiday run from roughly $2 to almost $8.

You don’t need to hear about any BS “hot pick” as much as you need to study the past. ALL the knowledge you’ll ever need to succeed in a big way has already been written down, you just need to put in the time to study it. New technology has made the entire process SO MUCH easier!

— Timothy Sykes (@timothysykes) November 21, 2021

Since its big run, it’s in a downtrend. It’s following step #7 from my 7–step pennystocking framework — the long kiss goodnight.

Then on Friday, it had news…

The company announced it hired a capital markets advisor and will apply with the OTC Markets to uplist to the OTCQB tier.

But I wasn’t that excited about the catalyst. I was more excited that it had its first green day. Here’s why…

Lesson #3: Look For This Every Friday

On Fridays, I’m always looking for weekend plays.

And HMBL had everything I look for:

• Catalyst
• A breakout to new intraday highs
• It held support
• Former supernova
• A ton of promoters

I love promoters. Ethically, they’re bad, but they’re great for business. And I know they’ll be pumping the stock all weekend long.

That brings me to the next lesson…

Lesson #4: Trade The Shadiest Companies

Most people think you have to invest long term in ‘good’ companies to make money in the markets. That’s not how I roll…

Trading penny stocks is counterintuitive.

I like to trade the shadiest, most promoted stocks in the entire market.

So I don’t care if promoters are doing something illegal. I care about whether they do their jobs.

That’s why I love to post tweets and rile them up. And when I know promoters are in a stock, it gives me an idea of how closely the stock will follow my 7–step framework. It helps me prepare.

But it’s a double-edged sword. I have to time it just right. If I tweet during market hours, they could tank a stock if they find out I’m long.

So on Friday, I waited until after the market closed to tweet this…

I LOVE BUYING HUGELY PROMOTED TRASH LIKE $HMBL as it’s solid https://t.co/xMdUiCSnNb play like $IQST last week & a solid https://t.co/Yzwro7M6Oa pattern, nice way to end my +$10k week, retweet/favorite this if you also love the runners this week like $ELEK $FORW $LICH $RGSG $LGVN

— Timothy Sykes (@timothysykes) November 19, 2021

They can attack me all weekend for buying a stock after I call it trash. I don’t care. It is trash. I’m not an investor, and I’m not part of the HMBL army. I just trade the same simple patterns I have for years.

Daily reminder that $HMBL is junk, the #hmblarmy is bullshit & you can either learn the https://t.co/46W8tDSDIj pattern or get decimated like too many newbies brainwashed by promoters are. SAME pattern as $ENZC $GGII $OPTI $AITX $VPER $LTNC $GTLL how many times must I repeat it?

— Timothy Sykes (@timothysykes) November 18, 2021

Lesson #5: Have a Goal for Every Trade

When I bought HMBL, it was already spiking. It gave me the confidence to buy. And this time my goal wasn’t 1 or 2 cents…

I knew the setup, and I knew I wanted to hold it over the weekend. I’m not good with patience, so I tried to not watch it. I distracted myself by answering questions from students in my Challenge chat and explaining my thought process for the trade.

There are always risks with holding stocks overnight or over the weekend. It could get halted because of all the promoters. Or the promoters could create a giant panic at the open.

But since I had a good entry, I wanted to stick to my trading plan.

Want to know how I did on my trade? See all the details of my weekend trade here.

Watch the full live trading webinar here. (You have to be a Challenge student to watch it. Not in the Trading Challenge yet? Apply here.)

Lessons From My Webinar Q&A

Here’s what you can learn from Challenge students’ questions during my webinar…

• Focus on the right stocks. I get so many questions about irrelevant tickers. If you trade random stocks, you’ll have random results. There are usually only a few stocks each day that offer potential trades.
• React instead of trying to predict. Many traders try to predict unpredictable events. They ask things like, “What will happen if we enter a bear market?” You don’t have to predict whether something is good or bad. The market will show you.
• There’s no shortcut to success! Once traders get some momentum going, they want to speed up the process. You can only focus on each trade as it comes. Only size up when you’re ready — not because you want to reach a milestone faster.
• Don’t oversimplify or generalize. Nothing in trading is simple. There’s no general guideline like cut a loss here or add to a winner there. You have to adjust your actions and expectations based on each trade.
• Don’t chase alerts. Stocks move too fast. By the time I posted my HMBL trade alert, the stock was already a few cents from my entry. Instead, learn my mindset. At the beginning of my webinar, I wasn’t interested in the stock at all. It looked weak. Also, I didn’t love the catalyst, and it didn’t have enough volume. But when the price action changed and volume came in, I adapted. That’s trading.

Trading Challenge

These lessons are great to learn from, but they’re only a tiny piece of the hours of education my students receive in my webinars.

I answer so many questions, review potential trades, and explain the mindset behind my trades from the past week. My Trading Challenge is also where you get full access to me and my top students in my Challenge chat room.

Find out what being part of a community can do for YOUR trading. Apply for my Trading Challenge today!

What do you think of my top lessons? Let me know in the comments … I love to hear from you! 

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