Penny stocks offer more diversity than any other asset class in the stock market.
Consider the market today:
- Saudi oil fields went under attack, sending energy prices through the roof
- The Fed is set to make an all-important interest rate decision
- The China/U.S. trade war is on a timeout
- While the trade war has been stealing headlines, there is also a currency crisis few are speaking about
- And the 2020 Presidential election is about to make the stock market interesting again
However, NONE of it matters when you dip over to penny stock land.
You see, there are a different set of factors that influence penny stocks which are uncorrelated with the rest of the market.
The best part– you don’t need a lot of money to get started with penny stocks, and the setups I teach are fairly easy to apply.
Penny Stock Trading Strategies Work In Any Market
Traders are still trying to make sense of all the news headlines.
… I’m spending my time actually making money in the market.
Well, I’m using my best penny stock trading strategies… the same ones that allowed me to return 275%, 220% and 600% on three separate accounts… the same ones that helped me achieve 276% just 8 weeks in my latest Small Account Challenge.
Today, I’m going to show you exactly how I use my strategies to make money in the markets… no matter what market environment we’re in.
For example, last month when the market sold off… I was actually looking at buying opportunities.
No, I’m not a dip-buyer… I was looking for penny stocks with my bullish setups.
When the market sells off, we actually see a lot of traders pour into penny stocks and small caps in order to make money… and I was expecting some to move a lot.
While traders were panicking last Friday because they were fearful of a potential gap down on Monday – you probably heard about the bloodbath already – I actually bought a stock and planned to hold it into the weekend, as the trade was part of my Weekend Wiretap strategy.
I was comfortable being long into the weekend because I knew that even if the market moved, my trade idea could still make money.
Here’s a look at the bullish setup that I found in Discovery Gold Corp. (DCGD).
This is the daily chart in DCDG.
Generally, if I find this setup on a Friday… I’m going to hold it into the weekend and look to take profits on Monday.
Well, while traders were seeing red on their screen Monday… I was actually taking profits in DCDG.
That’s right, I locked in $1,102 on a single trade, amidst a period where the market was getting crushed.
But more winners like that one.
For example, I locked in a $484.50 winner in just 10 minutes. While that might not seem like a whole lot at first… keep in mind I’m trading a small account (I started with $3K and turned it into $11,300 in just 8 weeks!).
Here’s the pattern I spotted in ValueSetters Inc. (VSTR).
Basically, this stock had a massive run up, followed by a pull back. However, I had a trick up my sleeve and a pattern to find the best entries when a stock pulls back after a massive run… it’s called the Fibonacci retracement.
When I’m using this tool, I’m looking for large swings… and all I need to do is find the swing high and swing low and I can find hidden levels where there’s likely to be demand, which would drive the stock higher.
With this setup in VSTR, I bought shares at the 50% retracement level (as you can see in the chart above).
Shortly after, the stock popped and looked to take out its recent high. I used that move to take profits because I figured there could be some resistance, which could cause the stock to pull back… locking in nearly $500 in just 10 minutes.
With that being said, penny stocks are offering a lot of opportunities right now… and they’re a heck of a lot easier to trade than other stocks out there, if you know how to use my simple-to-use strategies.
From time to time, I open up my trading room for readers to see what it’s like to be on the other side. In fact, here is one of those exclusive training sessions that I recorded during the chaotic month of August.
Source: PennyPro.com | Original Link