Yesterday on Cyber Monday, millions of people got on their computers or phones to shop online hoping to land some of the hottest deals…
But all of these individuals had one thing in common.
I am not a gambling man, but I bet if you were shopping on Monday, you most likely had a game plan on what you wanted to buy.
We all make plans in our everyday lives for the things we want to accomplish, and nothing is different when it comes to trading.
In fact, on Sunday night I tweeted this…
I hope you had a great #Thanksgiving weekend & grabbed these holidays deals https://t.co/BYQdHiOqir & https://t.co/MNaBwNxDDz & https://t.co/1xhAMEN1eG but now I'm working on my watchlist as the reason why 90%+ of traders lose is lack of preparation! Are you ready for this week? pic.twitter.com/fjxm6YzuMZ
— Timothy Sykes (@timothysykes) November 28, 2022
You see, 90% of traders lose in this market because they aren’t fully prepared for every trade they make.
Every day I break down my trades step-by-step to help you better understand the process, but it’s up to you to study this material to help you spot these types of opportunities on your own.
My goal is to help all of you become a self-sufficient trader, and today I want you to start by practicing this one specific step.
So if you are ready to take your trading game to the next level, here is how you can plan like a pro!
Having The Right Tools
There are several tasks that we need to complete every day…
Whether it is in our personal lives, or at work, we typically use a tool to help us accomplish our overall goal.
As traders, using the right tools is a way to help us get to our end result…
But it’s also important for us to study to get familiar with the process.
Let’s say you are trying to build a house and you have all the tools in the world, does it mean that it’s going to be perfect?
Not necessarily, it requires a lot of studying and learning the process for it to become easier.
Having these tools will help you get an edge and help you make a more well-informed decision compared to those who don’t use any tools while trading.
There are thousands of stocks out there every day for us to scan through, and this can help you find all types of stocks and trading opportunities.
We always want to look for big percent gainers, but when we find these opportunities…
What are the next steps?
That is the million-dollar question…
Making A List, Checking It Twice
Every day I create a list of stocks that I am watching, which could result in a possible trade…
But it’s important to be patient and wait for the best setups to come to you.
When I am creating a list of stocks to analyze, there are a few items that I focus on, and you should, too….
Each day you want to continue to add stocks to your watchlist, and this can help you with that process.
It is also important to remember previous stocks that you have traded or missed to see if other opportunities are opening up.
With any trade, you have to meticulously plan your entry and exit point…
You don’t want to be guessing what may be the best time to enter a trade.
With these small-cap stocks, you tend to see the same patterns over and over again…
That is why I continue to focus on the same key indicators every day to help me spot these opportunities.
Recognizing these patterns will help make the trade more predictable, but even then it may not work out as planned…
So it’s important to remember that small gains are perfectly normal and to remember my #1 rule and get out quickly if everything fails.
Now, many of you may have heard me talk about this stock previously, and I hope a lot of you recognized this play…
But remember, just because you trade a stock once doesn’t mean it is done, that’s why it’s important you study my penny stocking framework to be better prepared for opportunities like this.
On Friday and Monday, I was able to trade Global Tech Industries Group, Inc. (OTC: GTII).
In my first trade for GTII, I was able to profit 5.88%
and in my second I was able to profit 1.53%
Looking at both of these patterns, I want you to break down every trade and look at the differences in them.
In the first dip buy above, you can see the stock bounced nicely, but in my second trade yesterday it didn’t…
So I decided not to hold and pray that it would go higher and took a small gain.
I have been following this stock for months, and I noticed that it had started to panic early in the morning…
But now, the jump-up was minimal yesterday, so I will be trading with caution the next time it has an early morning panic…
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And will take a small profit if the stock doesn’t bounce as planned, which means it may be approaching step #7 in my framework.
The Big Picture
Every day we all want to be better at the things we do, no matter what it is…
And sometimes that requires us to practice and put in hard work in order to be successful.
Before every trade, you want to be prepared and ready for when an opportunity comes your way…
And identifying those trades will give you a starting point.
In the past, I have mentioned stocks like Meta Materials Inc. (OTC: MMTLP) and how I was waiting for it to break out, and then it finally did…
Or for GTII to have a morning panic, and then it did…
If you are identifying all of these possibilities and keeping them on your radar, it’s going to help you be ready when that morning dip buy happens…
Or when the stock finally breaks out.
Now, just because you spotted an opportunity it doesn’t mean that it will result in a trading opportunity…
This is why you want to continue to keep looking around for new opportunities every day.
Continue to study and be prepared as any trade can pop up in a matter of minutes…
Just like my Supernova pattern, you never know when a stock may explode upwards.
So be sure to study up and get better prepared every day by creating your own watchlist!
Cheers,
Tim
P.S. – Over the last several months, we have seen a lot of big tech companies struggle to rebound as penny stocks continue to heat up. As small-cap stocks are starting to spike again you don’t want to miss out on how this one pattern can help you capitalize on them!
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