Trading stocks, whether they are penny or big-named stocks, always carries inherent risks that cannot be completely eliminated…
And in a volatile market like this one, failure to control your risk can lead to significant losses that nobody wants to endure.
Over the years, I’ve learned how to adapt and navigate through turbulent times, and I’ve found effective ways for you to manage and significantly reduce your trading risks.
Given the uncertainty about the banking sector, and what the Fed may do with the interest rates in the coming days…
It’s essential to avoid taking any unnecessary risks with your trades.
Contrary to popular belief, you don’t need to trade big-named stocks to succeed in this market…
In fact, taking a more conservative approach may be the best way to ensure your success.
So if you want to know what my plan of attack is to stay afloat in this crazy market…
Make sure you keep reading below!
Table of Contents
Safety First
I’ve been in this industry for a long time…
And the number of traders I see who refuse to take small profits, focus on trades that are higher stress…
Or trade thinking they have a way bigger account than what they actually do…
It blows my mind.
It’s no wonder why the majority of traders fail!
You see, everything I teach is geared toward how you should be trading with a small account…
Not about how much money you can make in a single day, or pumping your body full of adrenaline every time you trade.
That’s not trading, that’s just gambling at its finest.
Believe it or not, all of my students started off trading small!
I explain it all right here in my recent video!
Not thousands of dollars right like most people think.
In today’s market, it’s incredibly important for everyone to be safe since we don’t exactly know how everything is going to play out with the banks…
But the nice thing about penny stocks is that they simply don’t care what the banks are doing and there are still plenty of opportunities out there.
So let’s take a look at what I am doing to help lower my risk in this market.
Lowering The Bar
Traders will still think penny stocks will never provide you with opportunities, but the truth is…
They just don’t know what to look for.
So don’t let that discourage you!
That’s why I am here to help you understand how to spot these opportunities and what your next steps should be.
Let’s take a look at my first trade…
VeeMost Technologies Holdings, Inc. (OTC: GDVM)
This trade is where you can really use your small trading account to your advantage…
This pattern is all part of my 7-Step Penny Stocking Framework.
You see, when a penny stock goes up, it will eventually come back down…
Especially with a heavily promoted stock like GDVM.
As the market opened, GDVM panicked just like I wanted it to, and it had a ton of support at $0.06…
And I was able to determine that by simply using Level 2, helping me find the perfect turning point in this trade.
Here’s everything you need to know about Level 2
But before any trade, I always look back at how it’s performed in the past.
Maybe it’s a multi-day runner or former Supernova…
The past can really point you in the right direction as to if this stock is worth your time.
Many of my students who first joined my challenge mastered the panic dip buy at first because a lot of these plays can be so predictable.
Stop trying to learn several patterns all at once, start with one strategy as my students did, and keep growing from there.
Let’s go to my next trade…
Statera Biopharma, Inc. (OTC: STAB)
I took a stab, no pun intended, on this morning’s spiker with solid acquisition news…
As it took a quick dip off of its highs from early in the morning, I wanted to take a stab at it to see if it would bounce, even in this ugly market.
Notice my trade here, I was in and out in a matter of minutes with a small position size.
I waited for the stock to panic after its spike early in the morning and tested to see if it would bounce.
I was out for quick profits, but the thing with the dip buying strategy is that you don’t want to stay in for an extended period of time…
In fact, I encourage no trader to stay in any stock for an extended period of time.
You see, what I teach is all about trading, not investing…
And if you think you should’ve held on longer, you have it all wrong.
Let me give you one example of why I don’t like to hold any longer than I have to with any trade…
More Breaking News
- Micron’s Strategic Moves and Market Reactions: A Shift in Future Outlook
- CoreWeave Expands AI Cloud Capacity with $8.5B Loan
- Key Takeaways
- Blue Owl Faces Stock Pressure Amid Atlas Holdings Investment and Tender Offer Rejections
Always Think The Worst
I trade scared most of the time, that’s why I am always looking for a quick trade…
And yes, I leave a lot of profits on the table way too often, but that’s ok!
Imagine if you were in SVB Financial Group (NASDAQ: SIVB) thinking this was a dip buying opportunity and you held overnight…
Everything you just invested into this company is gone.
People say penny stocks are worthless, that they aren’t safe, and can go bankrupt…
News flash, any company can collapse!
SIVB just collapsed in 48 hours and it was worth over 200 billion!
Trading is all about risk management and staying safe, it clearly doesn’t matter what type of stocks you are trading…
And people buying into the news that SIVB is a steal, it’s no wonder why the majority of traders are stressed!
I teach all of my students how to grow their accounts safely and effectively, and focus on what really matters…
Not the garbage that CNBC feeds to its viewers.
Stop trying to have the “go big or go home” mentality and start off small and over time you’ll be able to do what you want.
Trades like GDVM and STAB are way more predictable, mainly because of the promoter’s work…
And with risking a limited amount, you can see some very quick plays that can yield you 5%-10%, which is my usual target for each trade.
I want to teach you the process and help you understand it…
Stop trying to risk more with every trade, and add more stress to your life than what’s needed.
Stay safe, take smaller risks, and focus on taking those quick profits!
-Tim
Leave a reply