How To Trade

Recently I’ve become obsessed with planning ahead of time, that’s why I’ve written recent blog posts “Here’s How I’m Playing All These Hot Stocks Now” and “My Plan For The Next 10 Months” as I think that’s key for you to become my next millionaire trading challenge student.

And today, the overall US markets are down big and earlier I warned my chatroom (get access here) of the downside potential and for everyone to go into protection mode as that’s the key in this choppy market environment that’s long overdue for some more pain for longs, see my new video here I made just to explain that a little more in depth:

Yes, yes, I am the ONLY TRULY safety-first penny stock day trader in the world, except for maybe this guy who is a discipline ninja when it comes to getting out of trades going against him….this legendary penny stock trader cuts losses intelligently rather than quickly, so let it be known that you always have a choice, you can be conservative or aggressive, whatever suits you and your personality…

Download a PDF version of this post as PDF.

…although I should warn you that when you’re first beginning it’s FAR easier to be strict with cutting losses quickly and only get more aggressive over time when you have more experience and know how…and it’s FAR more difficult to be aggressive at first and then get all safety-minded later on.

The best part of my several Millionaire Trading Challenge students is not just the millions of dollars that they’ve made, but the fact that they’re self-sufficient and unlike far too many gunslingers who I’ve encountered over the years, they prioritize risk management and safety first as it’s NEVER just about how much money you can make on any one trade, what matters FAR MORE is the risk-reward of that trade i.e. never risk losing everything you have, or even anything close to it, in order to make just a few hundred dollars or a few thousand dollars as there’s SO MUCH shit that can go wrong on any trade, there are MANY reasons why NONE of those gunslingers still trade…as in they don’t trade AT ALL because they lost everything or they trade with such a small account that it can’t even be considered trading, the price they pay for taking on too much risk earlier in their career and losing big.**

This is not to say don’t trade at all in this current market, on the contrary, all this market downside and volatility opens up some solid trading opportunities and you might know this is my favorite pattern of 2018 and I’m waiting patiently for the next example.

Just be alert and beware that yes, 3 out of 4 stocks do follow the overall market and it doesn’t just matter if a stock is red or green on the day, when the overall markets are down this much it becomes VERY difficult for any of these penny stocks to go truly Supernova like we saw last week, so that dramatically reduces the potential rewards for longs and increases the risks, hence why the overall risk-reward ratio gets out of whack and I say trade EXTRA safely.

And trust me, I’m well aware that my “safety-first” mantra isn’t very popular with traders, I’ve heard all the arguments against it and ye since I’ve been teaching for 10+ years now I’ve seen SO many traders come and go, SO many traders who think they’ve found new strategies that can make them a millionaire quicker than my previous Millionaire Trading Challenge students and every single one of them has failed to become a millionaire and most of them have failed entirely, losing anywhere from 50% to 75% or even 100 to 150% of their capital (yes you can lose more than you put in if you find yourself on the wrong side of a short squeeze i.e. so much for thinking it’s SO easy to just short sell every penny stock pump and dump and you’ll make money eventually when they all come down…NOPE!)**

But I don’t teach to be popular and I actually enjoy putting newbies in their place as I’ve heard all their ignorant assumptions and misconceptions before and it still blows my mind how cocky some newbies are and how little they respect experienced, veteran traders who have been around and seen a LOT more than they have)

So, I want you to read this blog post in its entirety and watch that video lesson I included up above and leave a comment below with what you think…will you play it safe in times like these? Or will you be stubborn and go for home runs and not cut losses extra-quickly? The choice is entirely yours, all I can do is pass down rules, patterns, and lessons that I’ve learned the hard way over the past two decades.

By all means, you choose what’s right for you as ALL my top Trading Challenge students have become self-sufficient so that should be your goal too…just don’t say I didn’t warn you if and when this market becomes uglier and you ignore my warning o be extra-safe.