When Momentum Fades: Smart Penny Stock Trades For Small Accounts

Ever feel like a vampire is draining the stock market of its vital life force? The more go-to strategies for penny stock trades you know, the higher your chances of surviving when momentum is suddenly sucked dry.

The market’s had some spooky moments lately. Maybe it’s just the time of year. Maybe it’s just a response to recent run-ups. Or maybe it’s just a blip on the radar during this year’s crazy market volatility

No matter what’s going on in the market, there will always be opportunities for smart, educated traders. It’s all about being able to adapt to the current market conditions and what’s going on right now.

Wanna be prepared? Let’s talk about smart penny stock trades for small accounts … Memorize these setups. Understand them. Be ready when opportunity knocks!

Is the Market Getting Scary?

History repeats itself … Traditionally, September and October have been scary times in the stock market.

The notorious stock market crash of 1929 happened in October…

And the stock market crash of 1987? Also in October.

Oh, and the 2007–2008 financial crisis? It kicked off on October 9, 2007. That’s the day Congress rejected a bill to bail out banks…

After a truly historic run-up, the S&P 500 recently experienced what some called a ‘mini-crash.’ There’s been some recovery, but it’s got some people spooked.

Plus, the election is creating lots of uncertainty that could lead to more market volatility

Recent slowdowns and consolidation have traders wondering if the hottest trading year in decades is winding down…

What do I think? I don’t like to predict. And I’m definitely gonna stay careful … I’ll probably cut losses even quicker than usual.

But in the scheme of things, I’m not worried. As I’ve learned in my 20+ years of trading, there are always opportunities. It’s a matter of reacting to what the market gives you.

React, don’t anticipate!

Penny Stock Trades: You’ve Gotta Adapt

Patterns repeat … but penny stock trades don’t always play out the same exact way. That’s why you’ve gotta constantly keep learning and adapting.

Trying out dozens of different setups at the same time and seeing what works is NOT an effective trading strategy.

Instead, it’s better to focus on a few key setups and really understand how they work.

Figure Out Your Ideal Setups

I’m a big believer in letting data dictate what works for you as a trader.

Keep a trading journal where you log your trades. Log details like your entry and exit points, your theory for getting into the trade, and how it worked out.

My top student, Tim Grittani, kept meticulous notes on his trades — that’s how he figured out what was really working for him. He focused on the setups that were making him the most money — and perfected them.

Now, he’s made over $12 million*

What’s Working Now?

Let’s look at some recent plays — these will give you an idea of why caution and quick reaction times are vital in the market right now.

How Do I Find Penny Stock Trades?

So many traders just want alerts. I don’t want anyone to follow my alerts … Instead, use them for your education. It’s how you can better learn the process. Ultimately, I want you to be self-sufficient and develop your own strategy.

I use StocksToTrade to filter down the thousands of stocks to a short watchlist of the strongest potential plays.

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This way, I don’t have to waste my time on stocks that don’t meet my criteria. Thanks to StocksToTrade’s add-ons like the Breaking News Chat feature, I can also get a heads-up on when there’s news that could move a particular stock.

(I’m an investor in StocksToTrade and I helped develop it.)

Basanite Inc. (OTCQB: BASA)

This was one of the best morning spikers on September 8, 2020. I actually missed this play. But you can ALWAYS learn something from trades — even if you didn’t take a position.

Props to my students who reported buying the breakout during the morning spike. There was a great opportunity to buy in the low $0.70s then sell in the high $0.70s, $0.80s, or even higher…

But as you can see by the chart, it happened fast — then faded into oblivion. In a market like this, you can’t stay in trades too long!

BASA stock chart
BASA chart: Early spike on September 8, 2020 — courtesy of StocksToTrade.com

Galaxy Next Generation Inc. (OTCQB: GAXY)

I dip bought this former runner with news, hoping to make 10%–20%. The bounce exceeded my expectations and I made $1,035.* But I didn’t stick around.

In retrospect, I could have made more … but I didn’t want to get greedy. At the time, the Dow was dropping like crazy. I don’t need that kind of stress in my life.

GAXY penny stock chart
GAXY chart: Early spike on September 8, 2020 — courtesy of StocksToTrade.com

Don’t miss more commentary on these penny stock trades and more — it’s all in this video:

Don’t Miss My 30-Day Bootcamp

If you want to become an informed trader who understands how to adapt, you’ve gotta check out my low-cost 30-Day Bootcamp.

It’s priced at less than $100 — traders need to take advantage of this incredible tool.

‘30-Day’ doesn’t mean you have to do it in a specific period of time. You can watch it on your own schedule — some people finish in a week, others take longer than 30 days.

I made this with one of my most promising students — Matthew Monaco. At the time we filmed it, he was just finishing college. Now, he’s up over $300K in profits.* I knew he had potential, but he’s exceeded my expectations!

Trade Like a Vampire Slayer…

When the market has these momentum-sucking moments, you’ve gotta approach the market like a sniper … All right, it’s October, so a vampire slayer.

You can’t overstay your welcome with penny stock trades in the current market. If things go your way, get out fast and take profits. And if things go bad, get out even faster. Cut your losses quickly! Otherwise, your account could get sucked dry.

Wanna be prepared when promising penny stock trades come along? Educate yourself. Understand the patterns. If you’re ready to get serious, consider applying for my Trading Challenge.

Have you adjusted your trading strategy during the recent market shifts? Leave a comment and tell me how you’ve adapted!

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