The markets had an impressive bounce off support. But all good things come to an end … here’s a daily chart of the S&P 500 ETF Trust …
Stocks crashed down as many traders believe the Fed will continue with their aggressive rate hikes to help curb inflation.
As many traders continue to digest the unemployment data for what it’s worth, I continue to focus on finding the best possible trades…
And using the best possible pattern that I know.
I’ve met many traders who think the more the merrier when it comes to finding stocks to trade…
But in reality, it’s more about quality over quantity.
For example, I only made six trades last week. That’s a little more than one a day.
There is still a lot of uncertainty in the markets, but I have been able to capitalize despite the recent sell-off. All because I know what to look for.
If you want to know I plan to profit despite this ugly market, check out what I have my eyes on…
Table of Contents
Setting Realistic Goals
After trading for several years, I started to learn a very valuable lesson…
I began to understand the importance of quality versus quantity when I was trading.
But how would you measure the quality of life?
Is it measured by the number of cars or the number of houses?
Or is it by having millions of dollars?
Everyone has a different view on measuring what they need in life to make it the best possible life ever.
I’ve met a lot of greedy traders who just get sucked into the adrenaline of trading stocks in hopes to make it big…
But 90% of traders fail as they have unrealistic expectations when it comes to trading.
Every day I trade, I look for the best possible setup … and I make an exit plan. And then I stick to it!
What’s your plan? Buy a stock and sell when you can buy a Ferrari? Get realistic. This is a science, so be scientific.
There are days when I may not make a trade at all, and that’s perfectly fine!
But when there is a trade, I look to set a realistic goal and get out with a profit.
Quality vs Quantity
Why search for multiple trades in a day when you can just trade one?
If you are just trading random setups you will end up getting random results.
I know I didn’t get to where I am today, nor did my millionaire students just by luck…
They got there by sticking to a process that has been proven to work.
I continue to say this over and over again, I want all of you to focus on the best setups…
Over the last several days I was able to profit over $3,500 by sticking to this one setup…
And sticking to just one stock.
I actually mentioned this stock back in September, and I hope all of you had it on your radar.
Trading penny stocks can be tricky, but you need to understand the framework behind them.
As all of my millionaire students memorized my strategies, they are in fact still applying the same framework to this very day.
Looking at my most recent trade, I’ve been able to trade this stock eight times, you can see all of my trades right here.
Why would I want to trade eight different stocks, when I knew this one stock could have multiple opportunities?
Well, this is the power of quality over quantity, and this is what I have learned over my 20 years of trading.
These penny stocks have become so predictable, and this may not even be the last trade…
So let’s take a quick look at the recent chart of Global Tech Industries Group, Inc. (OTC: GTII)
In this chart, you can see the stock starting to ramp up before it spiked over $9 a share.
This pattern goes hand-in-hand with my pennystocking framework, which every trade should study.
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These types of chart patterns have shown these types of stocks can produce multiple dip-buying opportunities as the stock falls back down.
My Favorite Pattern
When I spot a stock that’s been a big percent gainer, I know there is a good chance for multiple dip-buying opportunities.
Why? Well, a lot of these penny stocks still have a lot of hype…
And you tend to see the panic in the morning, followed by a bounce at a key resistance level.
This isn’t an exact science, as some may not always bounce so I follow my #1 rule, to cut losses quickly.
I have been able to profit off of this pattern for over 20 years, and a lot of my students still use this same technique when they trade…
Final thoughts
Why search for 20, 30 or even 50 trades in a day…
When you can stick to one and master a simple pattern and profit from it?
I have met a lot of people that wanted to rush and get rich quickly…
That’s not how trading works…
It’s important to have all the tools to be prepared for the next big possible trade.
But it’s also essential that everyone here studies and masters the techniques I have been teaching you all along.
Even though I am not perfect with my trades, I continue to work on perfecting them every day.
I can’t share all of my secrets here as it would take you all night to read this article…
But there are ways I can help you get to the next level of trading…
And I will show you everything I know about trading and my strategies.
Study up!
Tim
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