How to Get Better at Trading Penny Stocks
You might think that becoming a successful penny stock trader is easy, but as you’ll learn if you want to become my next Millionaire Trading Challenge student you will have to continually refine your trading process and learn the patterns that work best FOR YOU!
Download the key points of this post as PDF.
So, start by doing these nine things and see for yourself the incredible effect it can have on your career as a penny stock trader as I want more Millionaire Trading Challenge students like this guy and this guy and now this guy too!**
1. Learn how penny stocks work This might sound obvious, but there are so many people that breeze past this step that it’s little wonder that so few traders really make it…use this penny stock guide as your foundation.
The low barrier of entry to this niche can be deceiving as just because trading penny stocks is available to anyone and doesn’t require an advanced degree, many people think it’s easy. That isn’t the case. To really find success at trading penny stocks (rather than relying on dumb luck) you have to learn how thise niche works. There are a few places to learn the basics, including my guide here and video lessons here too, but this guide is the best place to learn EVERYTHING.
2. Learn from veteran traders. One of the best ways to get better at trading penny stocks is to learn from established traders as we now have SEVERAL millionaires giving live weekly webinars to my Trading Challenge students and these are MUST WATCHES!
When people join the Tim Sykes Millionaire Challenge, they have made an important step toward pursuing success as a trader, but then the hard work begins as you must study, study, study to become successful. I am very transparent in letting my students know all about my processes and how I approach trades and many of my most successful students such as Tim Grittani do the same because we want to show you how to formulate a trade plan and then stick to it too!
However, when you observe other traders, it’s important to know that you are doing it for research purposes. Because ultimately, to find trading success, you must forge your own path so NEVER look for. Ultimately, this is what I want to teach you through my challenge: how to think for yourself as a trader.
3. Practice, practice, practice. Once you’ve learned the lay of the land and some different ways to approach trading, it’s time to begin to settle on developing your own approaches to trading in various market environments. This is far from something set in stone, and the best way to do it is through practice, use the papertrading feature here
Actually, many of the best students in the Tim Sykes Million Challenge Team consider themselves works in progress in this way, constantly evolving their methods and trading approaches based on the market environment, what they learn, and what works for their own personality, as I just wrote about here. By continuing to practice as a trader and learn and develop, you will get better at trading penny stocks over time.
4. Have clear goals for the future. While the future might seem like a long way off, it’s important to have long term goals as a trader. Ultimately, these are going to be the things that make you want to succeed as a trader. The more specific your future goals are, the better. For example, instead of “be the most successful person on my block,” your goal might be “buy a block of property and develop it to make $20 million in profits.”
Obviously, your goal will depend on who you are and what matters to you, but having something specific to work toward over the long run will make you a better trader, and it will allow you to begin plotting out how to make your dreams a reality, focusing on getting closer and closer to your goals day by day.
5. Have clear goals for the day. Goals for the future are important. But on a daily (or weekly, depending on what works for you) basis, it’s important to maintain motivation, so that you can continue on your path. For that reason, in addition to having long term goals, you need to establish short term goals, as well…and I’m not talking about profit goals, I mean goals of how much you can study and build your education.
Short term goals might be as simple as studying an extra 30 minute more than the day before, or not making the same mistake that you made yesterday or last week. It might be to refine how you scan for stocks. Your short term goals can be an opportunity to fine tune your trading. Over time, you will get better at trading penny stocks as these little things add up.
6. Make smart decisions about what to trade. Choosing penny stocks is a mixture of art and science. Yes, you want to choose stocks that are moving, but which ones? Do you go for the big ones that everyone else is probably chasing, or do you look for something flying under the radar? Watch this entire guide to help narrow down your search
Additionally, you need to take your trades seriously. Simply looking for movement isn’t enough. You need to see what’s really going on with the stock, including researching the company, looking at potential catalysts, and considering what may have happened in the past that could inform the future. To a certain degree, time will be your teacher, but if you get into the habit of doing good research now, it will make you a stronger trader over time.
7. Have a plan. To take your trading to the next level, you really need to start making a plan. This might not sound super sexy but trust me, it will revolutionize the way that you trade.
Methods of planning will vary depending on your personal style. But moreover, the benefits are many. For one, you’ll change your relationship with the trade, so that you’re not chasing the stock, but making calculated decisions, like a sort of trading hunter. By having a plan in place, you’ll also nip in the bud potential crisis-fueled bad decisions. By making planning part of your ritual, you will get better at trading penny stocks, and quickly.
8. Keep a log. As time goes on as a trader, it becomes harder and harder to remember the specific steps that have played into your successes and failures. It’s important to know about what steps lead to both.
It’s vital to know what steps led to success, of course, because this means that you can replicate them and recreate your success, hopefully over and over. But on the flip side, knowing what you did wrong in certain cases can be a big teacher, too. By looking at what didn’t work, you can avoid making the same mistake again…that’s why I created Profitly!
Keeping a log of your decisions, trading ideas and the process you followed can be extremely helpful in making you a more calculated trader.
9. Keep learning. When you stop learning, your career will slowly begin to decline. You might not even notice it right away, but you will become irrelevant over time. To stay current and create a strong infrastructure for trading for life, make a commitment right now to always keep learning. Not only will it make you a more well rounded trader, but it will make you a more interesting person. If you Get better at trading, get better at life. Win-win!
If you want to get better at trading penny stocks, these tips offer a great number of things you can do to start. By strengthening your methods and processes as a trader, you’ll begin to understand how to replicate trading wins and can set yourself up for long term financial success.
Tell me one of these points resonates the best for you? I want you to become a better trader so leave a comment and let me know so I can help you better!