It’s a common truth that nobody wants to waste their hard-earned money…
However, new traders tend to get carried away with the thrill of daily trading and disregard the significance of quality over quantity.
In fact, 90% of traders who fail are the ones who impulsively trade every trade to get that thrill they so desperately want…
Yet, such an approach can result in nothing but frustration, disappointment, and empty pockets.
But, I have some good news for you…
You don’t have to trade every day or multiple times a day in order to be successful in this market…
Instead, there is a different approach that I like to follow.
So if you feel the need to trade every trade, it’s time to pump the breaks…
And start focusing on this.
Focus on high-odds setups
Many traders who are just starting off typically ask how they can find the best setups possible…
Well, to be honest, this all comes with time and practice.
You need to be willing to study and review your previous trades, my trades, and anything you can possibly look at.
There is a specific process I like to follow, from start to finish…
The more you see things over and over again, the more you get an idea of what’s happening…
And with penny stocks, these patterns tend to repeat.
I don’t like to trade just to trade, I make sure I stay as disciplined as possible, helping me focus on the best patterns that I know have proven to work over the years.
In fact, one of my favorite setups to look for on a Friday is this….
There won’t be a perfect setup like this every time, but when there is, you need to know how to take advantage of them.
Over the last several days, I’ve been traveling, donating to my charity…
But there haven’t been many solid setups to choose from…
And if I wasn’t traveling, I would be running this risk of overtrading.
It’s ok to take a step back once and a while, especially when the overall market is bleh.
This week we haven’t seen much of anything, but there has been a stock I’ve been watching all week…
And this may sound familiar to some of you…
American Battery Technology Company (OTC: ABML).
On Tuesday, I told everyone at the end of the day to be ready for tomorrow for a potential panic…
This multi-day runner was approaching a key resistance level as it continued its run, but it started to show signs of weakness before it finally decided to panic…
Here’s the chart.
You can see the stock was a big percent gainer on February 28th, that’s when it initially caught my eye…
And as these OTC stocks haven’t been running lately, most of them have been fading after day one, but this one kind of stayed flat…
I knew not to chase at this point, but I was waiting patiently to see if anything would evolve after its recent spike, or if it would just slowly fade away.
As time went on, the stock had a solid close heading into the weekend.
At this point, I knew this was turning into a better opportunity for traders to see a panic…
And soon enough, it did.
Every penny stock play usually starts one way, and the longer they run, the more predictable their setups become.
This is why everyone needs to focus on this crucial first step to help them find some of the best setups.
Big percent gainers
Recently, a lot of these big percent gainers aren’t lasting multiple days…
But that doesn’t mean you should stop looking for them.
ABML is one of the strongest plays that turned into a multiday runner, which is why I was watching it for so long.
When a stock is a multiday runner, I’m not about to chase it…
I’m waiting for that panic so I am able to potentially capitalize on the way up.
It’s all a part of my 7-Step Penny Stocking Framework.
Some of these penny stocks may have a story behind their recent run…
Which can bring volume and volatility to the stock, giving us the quick moves we need.
Volume can play a crucial role in moving a stock’s price, and if a stock is a big percent gainer without the necessary volume…
You may notice that the price action looks choppy, and those are the ones you want to stay away from.
There s usually a story behind every stock that is moving…
And catalysts can be very powerful in determining if a stock is going to soar…
Or sink like a rock.
This is why I’m always looking and researching to see if there is anything I should be made aware of as the stock is moving…
But at this point, you must ensure you aren’t chasing and focusing on the best possible setups to come.
This market has been crazy, but there are still plenty of opportunities out there for you to choose from…
You just need to be selective.
So if you want to know what I am watching for next week, keep an eye out on Monday.
Study up!
-Tim
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