https://inpennystock.com/webinarsignupyt/ - Free Stock Trading Master Class! In this episode, I reveal four strategies you can use to impr...
https://inpennystock.com/webinarsignupyt/ - Free Stock Trading Master Class! In this episode, I reveal four strategies you can use to improve your trading in 2019, including my favorite and most successful strategy as well as a tactic you should implement in every trade you do. TIME-STAMPED SHOW NOTES [00:34] The stock screening platform, Finviz, allows me to research very quickly [01:40] Finviz home page, by default, shows you one day’s worth of information on price changes etc. [02:06] Assessing penny stock using Finviz [02:19] The important part of the screen to focus on is the stock price history (on the left) [02:38] Changing the chart view from candle to line. [03:04] Strategy #1 - Pump and Dumps [03:22] Pump and Dumps are very specific to penny stocks. [03:27] Penny stocks, unlike blue-chip stocks, do not require companies to report financials, depending on what stock exchange they’re trading at. [04:45] How Pump and Dumps work -- certain companies buy when it’s low and spend a lot of money on marketing the stock to make people buy (i.e. the pump). Then, when it hits their profit target, the companies sell (dump) their shares. [06:48] At in penny stock, we can save you time and teach you exactly how you can legally follow pump and dumps. But you can figure it out yourself by looking online in chat rooms, forums, newsletters; following patterns. [07:34] To profit from a pump and dump, you can either go long on the rise once you see a stock being pumped or go short on the dump. [08:43] Strategy #2 -- The Double Catalyst Rule -- is my favorite and most successful strategy [09:11] Sometimes, price moves in ways that don’t make sense (e.g. sometimes, on good news, the price will go down instead of up). [10:02] A catalyst is something that should move the stock. [11:10] To avoid trading on news or a hot tip and losing money when the stock goes in the opposite direction, use the Double Catalyst Rule i.e. combine two different advantages. [11:17] Do some technical analysis. After initial screening on stock screener like Finviz, I use Yahoo Finance to look at the stock chart in different time frames (5-day, 1-month, 6-month) [12:31] Breakout is when the volume (amount of shares being traded) or the actual price of the stock moves outside its previous highest point within that time frame e.g. 1- month. [13:30] It’s very difficult to know which time frame you should look at. I usually do the 1-year time frame. [14:14] Breakout serves as a catalyst. The Double Catalyst Rule combines two catalysts, when you are able to combine technical analysis with some fundamental news. [15:47] Pretty much any stock you go through has gone through its levels of pump and dumps. [16:09] Strategy #3 -- Position sizing [16:22] Position sizing is a particular tactic that you should implement in every trade you do. [16:30] Position sizing means you never risk more than a certain amount of your capital into a stock. This is because you’ll never be 100% certain of any stock. [17:00] If you are able to control the amount you invest per trade, you’ll make sure that you never go fully broke. [17:32] I recommend never trading more than 25% of your total account per trade. [18:34] Strategy #4 -- Minimize your losses [19:35] When a stock is going in your favour, lock in your profits. And the second it’s not going in your favor, minimize or control your risk based on your analysis and tactics. Don’t pray and wish. [20:31] If you have any questions, please comment below or email me at admin@inpennystock.com Resources Mentioned in the Video - Stock screener platform, Finviz --- https://finviz.com/ Less
