One Critical Tip To Trade Penny Stocks In This Market
Trading Penny Stocks? Not In This Market!
This market is a mess.
I’ve been warning you about this market… a few weeks ago I told you to lighten up… and many of you did.
I even released a special alert on our Facebook page the other day… if you didn’t see that important alert, you can find it here:
https://www.facebook.com/PennyStockRes
If you look at the market over the last few days, you’ll see just how crazy it’s been.
National news media is beating the drumbeat of fear into the investing public.
We’ve seen massive outflows of investor money from the market… and I think it’s going to get worse.
We’re rolling into the September and October months, which traditionally are incredibly volatile.
So what’s a penny stock investor to do?
One Tip: How To Trade Penny Stocks in This Crazy Market
Are you ready for this tip?
Don’t.
You read that right.
Don’t trade penny stocks in this market.
Don’t try to day trade the market… don’t try to pick the bottom, don’t try to catch the rebound. Just stop trading.
Yes, that’s crazy advice… but it’s the right advice.
Look, if you want to pick up super cheap S&P 500 stocks and buy deep dividend payers… sure, you can probably get a few at a discount in today’s market.
But for now… with penny stocks… keep things simple.
Stop trying to trade. You should have lightened up a few weeks ago… if you didn’t, do it now. Dump your big losers… yes, tax loss selling at its best.
Any stock acting funny… dump it. Any stock missing quarterly numbers… dump it.
Then make a list. Focus on your best of the best… and watch them closely.
If you use stop losses, tighten them up on your winners… the worst thing you can do is ride a winner to a loser in this market.
Sell first, buy later.
BONUS TIP: When To Buy Penny Stocks In This Crazy Market…
Once you’ve raised some cash…
Now you need to start building your shopping list. Start looking for those great stocks that got destroyed in the market downturn.
Identify them and watch them closely.
Once you see the indexes turn higher for a few consecutive weeks (YES WEEKS), you’ll know that the market run is back in place. Or if the markets continue their slide lower, you’ll be able to get these stocks at an even bigger discount.
Is trading this market rocket science? Not at all…
Just use your brain and don’t get caught up in the short term swings.
So… how has your portfolio held up? Have any of your penny stocks survived the downturn? Let me know on the blog.
Good investing…
Brian Kent
Note: If you’re interested in learning more about Brian Kent’s Penny Stock All-Stars premium service… and learning about the stocks we’re trading for profit… you can get the inside scoop on penny stocks here.
Category: Trading Penny Stocks
