Lessons From A Penny Pro

These Simple Fixes Could Bulletproof Your Trading Mindset

Hello trader,

Three times last year, I took three different accounts and flipped them effortlessly:

  • $6,700 to $25,000 in less than four months
  • $5,000 to $16,000 in two months
  • $5,000 to $35,000 in six months

And just four weeks ago, I started something new, the $3K to $100K Challenge. And as of yesterday, the account is up over 213%

 

(Up +200% in a month on my small account challenge, what am I doing? Click here to find out)

All from swing trading penny stocks. 

(I trade part-time, but that’s all you need with my trading system)

But I’ll be honest. My system alone won’t help you beat the markets. 

You also need a healthy mindset… one that enables you to successfully overcome the obstacles all traders face, at some point in their career. 

 

Developing A Bulletproof Mindset for Trading

 

If you haven’t heard, I started a new small account challenge last month. It’s where I look to turn $3K into a $100K account. You read that right.

Now, I’m doing these challenges to prove to my clients that even if they have a small account… it’s still possible to make money trading penny stocks.  As you progress and build that account, you’ll be able to trade with more size and you can actually scale your strategies up… and ultimately, that means more trading profits.

In just about a month… I was able to turn $3K into nearly $10K! That’s nearly a 200% return in trading profits (213% if you include my unrealized gains).

 

How am I able to consistently turn small accounts into large accounts?

It’s simple.

I actually focus on one trade at a time. 

No, that doesn’t mean I don’t trade multiple positions at once… it actually means I think my trades out, have an edge… and plan. 

You see, I’m not going out and putting on random trades, hoping I hit a home run… I’m looking for my best setups and just looking to take 10% – 20% winners, but sometimes… we get more than we ask for.

 

But how do you know what your best setups are?

Well, it’s actually really simple. All you have to do is a build a trading plan… test it… and journal.

 

Build, Test, Refine

 

When you’re trading stocks… it’s easy

Well, you can build a trading plan like this:

CNAT has a potential gap fill at these levels, as shown in the chart below.

I’m not looking for a home run in this trade, I’m looking to buy the stock in anticipation of a break higher and I’m going to look to sell right as it breaks above.

I’m looking to buy shares at $0.33

I’ll stop out if the stock gets below $0.30.

I’ll take profits at $0.40, and $0.45.

Thereafter, you would test this plan.

Now, you can either paper trade or put a small amount of money behind the trade. For the most part, if you’re just starting out… then you might want to paper trade. In other words, you don’t want to put real money behind your trades before you’ve had the chance to develop them.

When you’re testing your plan, whether it be with paper money or real money… it’s extremely important you journal your trades. That means writing out your trades and highlighting your strengths, as well as weaknesses.

For example, the most basic journal should include:

  • Profit and Loss (PnL) for the day. (Did you make money trading today?)
  • Number of trades. (How many times did you trade today?)
  • Specific trade details
    • The symbol you traded, time and date.
    • What strategy you used. (Was the trade based on a specific chart setup, fundamentals, etc.?)
    • The number of shares traded.
    • Whether the trade worked or not.
    • What you would change if you saw the same setup again.

Now, your journal can also include things like how you were feeling that day, the overall market conditions, your stress levels, your exercise routine, etc.

When you have some journal entries, go back and review them. As you’re reading through these journal entries, you can make mental notes of your mistakes, as well as your strengths.

Once you’re able to figure out what you’re doing wrong… all you need to do is cut those strategies and focus on planning for trades in your A+ setups. Those were some of the steps I took in order to realize nearly 200% in real trading profits in just under a month, on my account.

If you want to learn how to build your trading account, whether it be large or small… Click here to find out the 5 steps you need to take in order to become successful as a penny stock trader. 

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