My Background And My Penny Stock Trading Strategy
I started trading around January 2004 and became profitable around the beginning of 2006. I am a 100% technical trader which means I do not look at fundamental analysis at all. I prefer day trading but also occasionally hold overnight to sell into stock gaps. I like day trading because it allows me to sleep better at night knowing my money is not at risk to adverse market movements and short term trading suits my personality, however day trading penny stocks is not easy. If a trading strategy does not suit your personality then you are bound to fail because you will not be willing to stick to your plan and may end up becoming a penny stock investor a.k.a. a “bag holder” which is the worst situation that you could ever get into. I read charts and place my trades based off of a group of technical indicators and when combined these form my proprietary trading system. I find my penny stock trading strategy works a majority of time or at least enough so that I can earn a profit when I combine it with strict money management. I designed my system through thousands of hours of research and trial and error.
My buy and self decisions are based off of a fairly mechanical trading system which for the most part prevents me from making emotional decisions that full discretionary traders face. I find very few people can trade successfully using discretionary systems without targets or stop loss orders. The reason for this is because 99% of people do not have the discipline needed to cut their losses and let their profitable trades reach their targets. Most people think they have this yet if that were the case there would be a lot more rich traders. I see far too many people that average down on losers or enter stocks when the probability of success is very poor. I always wonder why people act this way but the fact of the matter is without these foolish people, traders like myself would have a harder time making money. Since trading is a zero sum gain where one person wins, and one person loses, these suckers are a necessity.
The only way to become consistently profitable is to learn how to be self sufficient and not rely on others. Unfortunately most people are either too lazy, uninformed, or incompetent to realize this simple fact and therefore 95% of people fail at trading. From my experience trading penny stocks successfully is not incredibly difficult, but most people just don’t put themselves in the correct position to beat the learning curve which is usually 1-2 years if you don’t have a profitable strategy to work with. There are many important variables that need to align (not just technical factors) and if you lack any of these, there is a very good chance you will fail over the long-term.
I call my system the Buy/Sell Zones. I plug a stock into my system which is coded in my charting software Ninjatrader 7, (but can be setup in other software) and in about 10 seconds I can tell whether a stock is a buy, sell or short, based off of the criteria that I look for. I can also use it to calculate my profit targets and stop loss order as well. My system allows me to look at the entire spectrum of prices for a stock, bond, option, futures or currencies, and determine if right now is the optimal time to place a trade. This keeps me out of trouble by preventing me from taking trades where the probability of success is not in my favor and allows me to limit my losses. I only trade off my signals. I will not trade off news or tips from others although I will plug any ticker that could be of interest into my system and see if it is worthwhile to track a stock.
If you are interested in learning my trading strategy inside and out please visit my website where I am offering my trading course Penny Stocks Behind The Scenes: Beat The Promoters At Their Own Game & Profit. I spent one year writing my course and I can honestly say that purchasing it will be one of the greatest decisions that you will ever make: Http://www.Beatstockpromoters.com.
My buy and self decisions are based off of a fairly mechanical trading system which for the most part prevents me from making emotional decisions that full discretionary traders face. I find very few people can trade successfully using discretionary systems without targets or stop loss orders. The reason for this is because 99% of people do not have the discipline needed to cut their losses and let their profitable trades reach their targets. Most people think they have this yet if that were the case there would be a lot more rich traders. I see far too many people that average down on losers or enter stocks when the probability of success is very poor. I always wonder why people act this way but the fact of the matter is without these foolish people, traders like myself would have a harder time making money. Since trading is a zero sum gain where one person wins, and one person loses, these suckers are a necessity.
The only way to become consistently profitable is to learn how to be self sufficient and not rely on others. Unfortunately most people are either too lazy, uninformed, or incompetent to realize this simple fact and therefore 95% of people fail at trading. From my experience trading penny stocks successfully is not incredibly difficult, but most people just don’t put themselves in the correct position to beat the learning curve which is usually 1-2 years if you don’t have a profitable strategy to work with. There are many important variables that need to align (not just technical factors) and if you lack any of these, there is a very good chance you will fail over the long-term.
I call my system the Buy/Sell Zones. I plug a stock into my system which is coded in my charting software Ninjatrader 7, (but can be setup in other software) and in about 10 seconds I can tell whether a stock is a buy, sell or short, based off of the criteria that I look for. I can also use it to calculate my profit targets and stop loss order as well. My system allows me to look at the entire spectrum of prices for a stock, bond, option, futures or currencies, and determine if right now is the optimal time to place a trade. This keeps me out of trouble by preventing me from taking trades where the probability of success is not in my favor and allows me to limit my losses. I only trade off my signals. I will not trade off news or tips from others although I will plug any ticker that could be of interest into my system and see if it is worthwhile to track a stock.
If you are interested in learning my trading strategy inside and out please visit my website where I am offering my trading course Penny Stocks Behind The Scenes: Beat The Promoters At Their Own Game & Profit. I spent one year writing my course and I can honestly say that purchasing it will be one of the greatest decisions that you will ever make: Http://www.Beatstockpromoters.com.