Lessons From A Penny Pro

The One Way to Build Your Trading Account

It’s soon to become a headline-driven market again.

That’s what happens when the Democratic Presidential Primary debates kick off…and an all-important G-20 Summit meeting is just around the corner.

But I’ll tell you this…

If you’re like me, and primarily trade penny stocks, then you already know that the outcome of these events won’t matter much to our trading.

You see, if you summed up the market cap of all the companies in the U.S. stock market… we’re talking about trillions and trillions of dollars… penny stocks only make up a small portion of the market.

Heck, it was reported that the companies listed on the New York Stock Exchange had a market cap of $30 trillion, as of February 2018. And that doesn’t even include Nasdaq stocks.

Most penny stocks are small-caps or micro-caps. In other words, their market caps are often in the 8-figure ball-park or less…

…small fries in the eyes of Wall Street… and that’s why most banks don’t even assign analysts to cover these stocks.

 

(The stocks I trade may not have Wall Street’s attention, but my subscribers aren’t complaining, want my newest alert sent to you in real-time? Click here to join now)

 

 

That said, I teach my clients how to build small accounts up (under $25,000).

And what’s the best way to teach people?

Show them what I’m doing with my own small account. You see, I’m right there in the trenches with my clients, not only alerting them on the trades I’m putting on, but also educating them on my process, and how I find my trades.

For example, I just recently started my $3K challenge ten days ago.

 

(The $3K small account challenge is off and running? Are you in? If not click here to get started now)

 

And when you take out fees and all that other stuff, I’m well up 47%. Heck, I’m up 57% if you don’t include my opening positions (unrealized losses). Nonetheless, you can see how great the returns are with penny stocks.

What’s my secret to achieving high returns so fast?

The answer might surprise you.

 

You Can Make Money Trading… Even if You Have A Small Account


If you have a small account… you might think there’s only one way to make money… put all your eggs into one basket and hope the stock moves to your favor.

Sure, if you’re right, you could walk away with a big trade and live to trade another day.

What happens if you’re dead wrong?

Your account is ruined… and you have to start from square one.

I don’t know about you… but I don’t like to trade that way.

Now, last year, I was able to return 275%, 220%, and 600% on three separate small accounts (we’re talking about accounts less than $10K here).

 

 

You’re probably wondering, Jeff, how did you achieve those returns and can I do the same thing?

Well, I can’t guarantee you’ll have the same performance like I did… however, I do these small account challenges to show you that it’s possible to build it up into an account you can day trade with… and that the stock market is not only for “rich” people.

For example, on my first and third small account challenges, I got those accounts above $25K and I wouldn’t have to worry about the pesky PDT rule had I decided to trade those accounts again.

Now, I actually laid out a 5 step plan to build small accounts – what I call The Profit Prism… and you can get all the details about it here.

One of the main things I tell Penny Pro clients is to be focused and consistent… and they don’t need to swing for the fences to build an account.

You see, if you focus on base hits and just locking in small winners… it adds up over time.

Base Hits Help Build Small Accounts

Think about it like this… if you’re able to consistently lock 10% – 20% winners (typically what I like)… it adds up.

One thing to note: I mainly trade penny stocks because my chart patterns work in them. Not only that, these stocks tend to move quickly, and it’s not crazy for me to lock in 10% or more in just a few days.

Getting back.

When you focus on base hits, you’re actually compounding your gains.

One quick question, If you saw $100 on the ground, would you pick it up?

Heck yeah, you’d be stoked.

Well, when you have a small account… you almost have to think that way. Rather than trying to double your account on one trade… it’s easier to hit smaller trades.

For example, let’s say you have a $10K account allocate $1,000 to any trade you get into and aim for 10% gains… and have tight stop-losses.

… but if you have a string of $100 winners… well if let’s say you hit 15 winners, have a few break-even trades, and 5 small losers (only losing around $25 – $50 on these)… well, if you do the math, those base hits can turn into $1K+…

Of course, as you’re trading… make sure to keep a journal so you know what your money makers are and the strategies costing you money. Thereafter, you can cut the losing strategies and just focus on your bread and butter.

Now, once you review those trades and just hone in on your money-making strategies… those base hits should snowball over time, and before you know it, that small account could be a large trading account – potentially changing your life.

I teach my clients exactly how to do that… and for the most part, we’ve been seeing some success stories like these:


How do you focus on knocking out base hits, while minimizing your losses?

Well, using the right strategy helps… as well as developing a trading plan.

If you don’t know how to do that… there’s a simple short cut.

I actually provide clients with video watchlists about the top penny stocks I’m watching.

For example, the other day, I explained my thesis on NVCN.

 

Well, I actually traded that stock and let clients know where I got in and where I got out.

How’d the trade turn out?

Nothing spectacular, just a base hit.


That wasn’t the only base hit we got this week…

 


… by focusing on my simple strategy and just getting base hits… my small account is up nearly 62% and approaching the $5K market quickly (I started this account with just $2K).

As you focus on just hitting small winners, those $100 profits you were aiming for can start to turn into $300 profits, then $500, and so on.

That said, if you have a small account, don’t think you can’t trade and make money fast.

 

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