Lessons From A Penny Pro

The Case For Penny Stocks

If you didn’t get a chance to catch me live yesterday in the SuperNova chat, then check out this link.

And a special thank you to all who attended.

I noticed some of you were taken aback when I spoke about the diversity that penny stocks offer in this market.  

Now, I know all these things are happening:

  • The global economy is slowing down
  • The Chinese/U.S. trade talks are unraveling
  • The Fed may decide to keep rates as is
  • The earnings season is still pressing on

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.

In fact, I’m going to share with you some of my best trades from this week… in what has been an awful week of market volatility for most traders.

Penny Stock Trading Strategies Are Working in This Market

This market has been so choppy and traders have been having a hard time making money and protecting their portfolios… and it makes sense when you see large swings in the market like we saw the last few days.

Traders are still trying to figure out what’s going on with the U.S. and China trade war, global macroeconomics, and whatnot… not me though…

… I’m spending my time actually making money in the market.

How?

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, on Friday when the market sold off… I was actually looking for buying opportunities. No, I’m not a dip-buyer… I was looking for penny stocks with my bullish setups.

Why?

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.

You’ll notice my Staircase to Profits pattern – one of my best chart patterns.

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 being long into the weekend, amidst a bloodbath.

Now, that wasn’t the only winner I had this week even with all the back and forth action in the market.

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 pullback. 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.

Yesterday, I actually opened up my SuperNova chatroom during the trading day and showed traders why penny stocks are great for trading and how they can generate high returns… fast… even if you have a small account.

If you missed out on my exclusive training session, I’ve got you covered. If you want to start pulling in high returns in penny stocks fast and with ease, then click here to find out how SuperNova can help you get there.

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