Every trader has to go through it at some point…
It’s unavoidable even if you’re a great trader.
And if you become good at it, it’s better than winning.
If you haven’t guessed by now, I’m talking about losing.
But here’s the thing…
For some traders, a series of losses can wreck their psychology.
Take a big enough loss, and you might be scared to take good trade setups.
I believe there is a place for fear in trading. Used correctly, it will help you be more cautious.
But if it impairs your decision-making, it can lead to many problems.
Over the years, I’ve developed a few techniques that help me limit fear’s role in my trading…and I’d like to share them with you.
Table of Contents
Ideal Setups
Nothing is ever going to be perfect all the time…
And once you start to see the same things over and over again, it becomes easier…
What do I mean?
Let’s look back to the first time where you learned how to ride a bike.
You most likely started with training wheels, and as you grew more confident, you took them off.
Even though the majority of us probably fell during this learning period, we kept getting up until we finally succeed.
The same thing is going to happen in trading, there will be times when you fail…
And some failures may be bigger than others, but practice and studying will help you realize your mistakes.
It’s important that you learn from them your mistakes…
And trading is all about finding the most ideal setups, and not guessing at what may be the best opportunity to trade.
You don’t need to risk money to find out if a pattern is perfect…
Instead, continue to practice and study my trades and ask other students if they think this is a perfect setup.
Morning panic dip-buy
Vision Energy Corporation (OTC: VENG)
Global Tech Industries Group, Inc. (OTC: GTII)
Notice how one is more defined early in the morning and the other isn’t?
These types of panics can happen intraday, but the ones that happen in the morning are more predictable.
Remember, the bigger the panic the better…
So as these penny stocks continue to run day after day…
Be sure you are looking for that early morning panic.
Now let’s focus on another pattern that I like to trade.
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Breakthrough Pattern
Meta Materials Inc. (OTC: MMTLP)
XCPCNL Business Services Corporation (OTC: XCPL)
Notice how MMTLP had a solid breakout through a key resistance level…
But XCPL tried several times and failed every chance it got.
It’s important to wait to see if a stock can hold above a resistance level where it may have failed previously…
And you don’t want to get stuck on the wrong side of this where you buy near a key resistance level…
Then the stock does the complete opposite you wanted it to do.
Continue to wait for those ideal setups, and as you are waiting for them to appear, it’s important to stay patient.
Patience is Key
I am always watching for recent runners that may lead to potential dip buys, including intraday panics…
But again, I am not trading everything that I think may be an ideal setup…
I am waiting until I am confident that this is a perfect opportunity.
I’ve seen way too many traders just trade random setups, and guess what…
It resulted in random results.
If you practice the wrong way, you will learn the long way.
Don’t think you need to rush trading to get a better understanding…
It’s important that everyone here goes back and looks at previous trades so that way they know what these ideal setups look like.
You can find all of my trades right here, which can help you see what these setups look like.
You’ll notice all of my winning and losing trades, but I am not ashamed of my losses.
I want all of you to learn from my mistakes so you don’t have to learn the hard way.
I am not here to promise you false hope, I am telling you it’s going to be a difficult journey if you want success.
So if you are remaining patient in this market and studying to help you find ideal setups…
You would notice plays like this.
Supernovas Are Hot
Being patient can help you spot better opportunities within the market, even when the times are slow.
I don’t want anyone here to expect that they are going to find multiple trades in a day that are worthy…
Even some of the biggest names out there aren’t making any money right now in this slower market, so don’t feel discouraged if you aren’t either.
It’s all about finding the right setups that can help you profit on most of your trades and limit your losses.
Since the start of the year, I’ve made over $1,400 in just 9 trades.
There are days when I am not finding any great opportunities, so this has allowed me to see what was happening in the market…
And right now I’m seeing previous Supernovas heat up.
Let’s break down one of my recent trades…
Kronos Advanced Technologies Inc. (OTC: KNOS)
Every trade I make, I am always adding it to my watchlist.
Even if I don’t make a trade and saw I missed an opportunity, I’ll still add it to my watchlist.
A trade may not always happen right away, it may be months or even years down the road…
In fact, I traded this stock back in 2020…
The point I want to make is that you should always remember your trades…
Even if you miss one, you need to add it to your watchlist.
If a penny stock has spiked before, it has the possibility to do it again…
Take a look at its history…
And that is what we saw today.
Just a few minutes before the market opened, I was notified about a possible trade.
Here was my alert:
I always look to see how the stock reacts to the news, and as this brought above-average volume to the stock…
And this made me feel comfortable with my decision to buy the stock.
As we continue to see Supernovas start to make some moves, I am more prepared now than ever.
Final Thoughts
There is a lot to trading in this market, but the better prepared you are…
The better off you will be.
It’s important that you are looking at the past, but sure you are studying the right way.
Take full advantage of this slower market so you are able to create a watchlist, and practice spotting these plays in real-time.
Remember, success isn’t going to happen overnight…
So put forth the time now so you can be successful in a year, two, or even three years from now.
Cheers,
Tim
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