People always throw shade at me on social media because I trade penny stocks.
They believe I should be trading “real stocks.”
But here’s the thing.
I’ve made over $7.4 million in trading profits from penny stocks.
Why would I abandon what works for me, and instead trade “real stocks” and compete against the world’s hedge and quant funds?
Are you getting into trading because you want to make money or are you doing it as a for-fun hobby?
At the end of the day, I want to be competing against weak, overly emotional, and inexperienced traders because I feel like that gives me a better chance at winning.
To really boost my odds at success I also want to focus on setups that I believe have a strong likelihood of working out.
Like my trade last Friday in the ticker symbol WKEY.
I’m going to share with you what I saw in the trade and why I believe I’ll be able to score more winners with it.
I Prefer Simple Vs. Hard
I like trading penny stocks because I believe they are predictable at times.
What I mean is…human psychology doesn’t change much. And the way that penny stocks and penny stock promotions work is something that can be learned, in my opinion.
I’ve taught this process to all of my top students, who have made trading profits of seven and even eight figures.
There’s nothing glamorous about penny stocks.
Most of the companies that are publicly traded penny stocks are complete trash.
But that’s not why I trade them.
I trade them because I believe they offer the best opportunities to grow a small account. It’s what I did to grow my small account into seven figures.
And it’s how I still trade…teaching my students how to build an account by trading small and utilizing my penny stock trading strategies.
Focus On Easy Setups Like WKEY
On May 15th, I got into the ticker symbol WKEY after seeing this tweet:
Discussion in Paris @choosefrance between @WISeKey CEO @CreusMoreira with @elonmusk on how to launch more low orbit https://t.co/JZZeZC1meH Picco satellites using #SpaceX and increment the 13 wise.sat fossa satellites we have already in orbit. pic.twitter.com/q7LxrYdSpG
— WISeKey (@WISeKey) May 15, 2023
It’s what I call legitimizer news.
That’s when a small-cap company can connect itself with a larger, more popular, and profitable business.
While not too many people know about WISeKey…
EVERYONE knows who Elon Musk is and his companies, SpaceX and Tesla.
I bought WKEY at $2.60 per share, and before you knew it…I was getting out at $3.56. A gain of nearly 40% in just a few minutes…
We still have a few more trading days until the month is over, but that was one of my best trades of May.
WKEY was in the news yet again…
And according to the press release, the company will launch satellites with SpaceX.
I did not catch the trade when the headline was made.
Usually, when the headline hits, the stock will spike instantly.
In other words, you have a small window to catch the breaking news.
I’m not always at my screen when news like that hits…so I have to patiently wait for my entry.
Personally, I thought the catalyst was huge. But maybe because it was Friday, it was being overlooked.
I decided to take a position later in the afternoon.
I felt like it was a good opportunity to get long with the stock down significantly from its earlier highs.
So I bought 1500 shares at $3.37 late in the afternoon last Friday. The plan was to get out for profits of 15-30%.
In less than an hour, I was selling out of most of the position, closing out 1000 shares at $3.94.
Normally, I would sell the entire position. But as I said, I really liked the news and thought the story was overlooked.
Then why sell any?
First, a lot of times, companies will use PRs to pump their stock price up. Once the stock has been pumped, they will try to raise capital by selling shares.
Second, Elon Musk is very active on Twitter. He could always come out and refute or downplay the story.
That’s why I decided to take some profits.
I decided to hold onto the last 500 shares to see what happens on Monday.
The stock was relatively flat on Monday morning…so I bailed on the rest of the position at $3.53.
I will keep the stock on my watchlist for the rest of the week.
You can make trading as complicated or as simple as you’d like. I prefer to keep things simple. And that’s why I stick to trading penny stocks.
One of my favorite catalyst plays to trade is the legitimizer.
Using a tool like the StocksToTrade Breaking News Chat can help you find plays like WKEY.
If you’d like to test it out and see how it can help you unlock new trading opportunities, then check this out.