I’ve said it once, I’ve said a million times–PennyStocking deals with pump and dumps, frauds, little crappy companies….not real companies, not financial plays, not commodity plays. Tonight’s news that the US is unveiling a plan to back up FRE and FNM means these two stocks are gonna surge tomorrow morning. It’s why the market futures are surging right now. It means that no matter their falling knife chart pattern (good for shorting on frauds as it means the jig is up and a rebound is unlikely), this huuuuuge fundamental news is waaaay more important.
The other day people emailed me that they were bottom picking these two mammoth companies…they lost. Over the weekend, people emailed saying they’re short…they will lose.
These kinds of news-based plays are prime examples of why 90% of traders lose money. Scalping is possible but dangerous and time consuming. Longer term bets are even ore dangerous. It comes down to a lack of focus. It’s guessing games. And there’s less predictability…especially overnight or over the weekend.
Stick with PennyStocking because it’s good. Stick with it cuz its patterns are predictable. Stick with it cuz it’s not news-based. Stick with it cuz it’s just easier.
Tags: Guessing Games, Patterns To Avoid
