With the overall economy looking weak…
The Federal Reserve continues to fight inflation…
Tensions rising in the Middle East…
We’re still seeing plenty of opportunities to take advantage of…
And it’s all thanks to these over-aggressive short sellers!
No matter how amazing these opportunities are, I’m still seeing newbies fall flat on their faces…
And it’s all because they’re ignoring these three critical steps every trader should know inside and out.
Today, I’m going to dive into those three steps and why it’s so important to remember them as we head into Supernova season.
Let’s dive in!
Table of Contents
Knowing How Much To Risk
This is one of the most important lessons for any trader to understand…
You never want to risk more than you should on any trade…
Even if it’s a StocksToTrade Breaking News Play.
Way too often I see traders going all-in on their trades, and then the next thing they know, they’re out of money.
No trade is ever a guarantee, and being the coward I am, I tend to trade scared and look to take quick profits.
Not only do you need to know when to lock in your profits, but you also need to know when to cut your losses quickly and not hold and hope if a trade doesn’t go as planned.
The stock market has a mind of its own, and if you’re not careful, the market will humble you.
The best thing about trading penny stocks is that you don’t need to risk a lot to make a lot…
And we can thank volatility for that.
Penny stocks are incredibly volatile, and they are not great companies…
They are garbage companies that usually fail, but I don’t care how good or bad they are…
I’m just looking to take advantage of those quick moves.
Let me show you what I mean by that from one of the trades I made last week.
Better Choice Company Inc. (NASDAQ: BTTR)
I was alerted by StocksToTrade Breaking News about this play…
And when I entered it, I was only looking to make 10-20%…
Source: Profit.ly
Now, take a look at the chart…
Source: StocksToTrade
I entered my trade at $0.27 and exited at $0.535 for a 98.15% profit! (Risked $2,025).
Locking in a 98.15% win is huge, but most newbies tend to focus on the dollar amount compared to the percentage gained.
This trade is a clear example of why it’s critical to lock in your gains along the way…
And If I didn’t, you can see how quickly it faded within minutes.
So make sure you take the meat of the move because with these plays…
You don’t need to risk a lot to make a lot.
Learn From The Other Plays
How often do I say study the past?
I’m not just saying it just to say it…
I’m saying it because you need to understand what’s going on around you.
Just a few minutes ago I dove into my trade on BTTR…
Remember how fast it faded?
Now, I want you to go back and look at a few other stocks…
- Tempest Therapeutics, Inc. (NASDAQ: TPST)
- Versus Systems Inc. (NASDAQ: VS)
- Secoo Holding Limited (NASDAQ: SECO)
- Matinas BioPharma Holdings, Inc. (NASDAQ: MTNB)
My point is that you need to learn from the past…
And right now we’re seeing many of these Supernovas spike higher, then immediately come back down.
I’m telling you, short sellers are not wrong with their thesis…
These are crappy companies and they will eventually fall back down…
However, recognizing how they fall can play a pivotal role if there’s an opportunity to trade them on the way down.
You see, this is all a part of my 7-Step PennyStocking Framework…
Some of these Supernovas can offer amazing dip-buying opportunities, but just as quickly as they go up…
They can spike back down in a free fall, and that’s like trying to catch a falling knife with your bare hand.
Remember, make sure you cut losses quickly if things don’t go as planned…
More Breaking News
- Wedbush and Northland Boost AXTI Price Target Amid Rising Indium Phosphide Demand
- Sezzle’s Remarkable Growth as FY2026 Kicks Off
- Mara Holdings’ New Digital Infrastructure Pact Signals Growth Expansion
- CBIZ Momentum: Financial Guidance Sends Mixed Signals
And make sure you get yourself familiar with how other stocks are playing out in this market.
Staying Prepared
I’ve been very thankful for StocksToTrade Breaking News as it’s helped me and many of my students nail these Supernovas…
Yet, I’m still seeing way too many traders out there who simply refuse to have the appropriate tools to help them succeed.
Minutes and even seconds matter when it comes to trading…
And if you’re not prepared for when opportunity strikes, you’re going to be in a way more difficult position than those who were.
I want all of you to be successful, but you need to put yourself in the best position possible if you want to succeed.
That’s why I encourage all of you to at least take advantage of these FREE trading sessions from other successful millionaire traders to get a better idea as to what’s happening in this market…
And what you can keep an eye out for in the coming days.
Stay safe and I’ll see you in chat.
-Tim
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