Lessons From A Penny Pro

Busy Professional? These 3 Steps Can Improve Your Trading

One of the questions I often get asked is

“Hey Jeff, I see you on twitter, and I follow your newsletter,  I love your energy, but I work a 9 to 5 job, is it even worth my time trying to learn your system and trade with you?”

My answer: YES

I don’t work a 9 to 5 anymore. However, as a parent of young children, I can’t be glued to the computer screen all day either.  

Not only does my system work for traders with small accounts, but it also works for busy professionals.

(It’s summer, and I’m running errands with the kids during market hours. Do I look stressed? Want to learn more about my system? Click here to find out)

So how does it work?

Simple. It starts with preparation and execution (special order types).

 

Have A Busy Schedule? That Doesn’t Mean You Can’t Trade Stocks

 

Let’s face it… we’re all busy, some of us are full-time parents, while some are busy professionals. Now, there are a lot of people out there who actually want to get into trading… but don’t think it’s worthwhile because they think they have to trade full-time to make money.

Now, I’m actually a full-time parent, but still have time to trade… and luckily, I have someone to take care of my kids when I’m trading and teaching my clients.

How?

I trade around my schedule and there are specific times of the day where I’ll place my trades… and just by doing that and sticking to my simple-to-follow set ups… I was able to nearly double my small in just a few weeks (I started my $3K challenge (where I try to turn $3K into $100K), as of Monday this week.

Now, there are actually some tips if you’re a busy professional or a full-time parent and want to trade stocks.

There first tip is to know how to set a specific order type.

 

Know How to Set Conditional Orders

 

Now, you should ask your broker what type of conditional orders they have, like One Triggers Another (OTA), also known as One-Triggers-the-Other (OTO). I know E*Trade offers this, as well as TD Ameritrade.

Why is this order so important?

Well, if you’re in a trade and have a profit target in mind… it allows you to set both a target and a stop loss. In other words, the OTO order allows you to set conditions of where you want to buy and stop out.

Basically, you can “set it and forget it” with this order type once you get into a stock. You’re “protected” on the downside because you have a stop-loss in place… and you’ll automatically take profits if the stock reaches your target, you would sell shares.

Now, once either order gets filled (whether you take profits or take a small loss)… the other order will cancel.

But what happens if you don’t know what to trade?

Well, there’s a fix for that.

 

Develop Simple Stock Scanners

 

If you don’t know what to trade… creating a screener is very simple, and you can do these scans whenever you find time.

For the most part, I trade penny stocks and look for my simple chart patterns. For example, one thing you can do is filter for stocks crossing above key moving averages… and you can do that using Finviz.

 

For example, this specific filter is looking for stocks with an average daily volume of at least 1M, crossing above the 20-day simple moving average (SMA) and 50-day SMA.

As you can see, once you filter for that setup… you only have 18 stocks to look at, down from thousands.

Now, if that’s still too much work for you to do and you can’t commit that amount of time… I actually provide my clients with video watchlists… so they know exactly what to potentially trade on any given day.

 

 

You still need to do a tiny bit of work… just analyze the stocks on the watchlist and thereafter, you can develop a plan with your entry, stop-loss and target prices. You could use specific order types (like a buy-stop limit and OTO order) to get into and out of the trade.

Again, if you know how to use specific order types, it’s “set it and forget it”

Now, I actually teach clients how to do these simple scans on Finviz and develop trading plans to work around their schedule.

 

Setting A Specific Time of Day to Trade

 

If you’re able to get around 30 minutes of free time during the day… you can actually trade. For example, one of the times of day I trade is the last 30 minutes of the trading day (3:30 PM to 3:59 PM EST).

My trading pattern is very predictable, and I’m at my desk always in the morning, during the lunch hour (around noon) and 3:30 PM.

You see, around 3:30 PM is when I’m actually looking for stocks likely to gap up the next day. In other words, I’m looking to buy stocks anywhere between 3:30 PM to 3:59 PM… set my exit orders (the OTO comes into play here)

Now, this actually has been very successful for me over the years… and last year this was one of the strategies that helped me return 600%, 275% and 220% on three separate small accounts last year.

Basically, if you can look at your phone for a few minutes between that time… you can uncover a lot of trading opportunities… and of course, I let my clients know via text and email the stocks I’m going to buy around this time… they know my entry price and the thesis behind the trade.

That said, if you’re a busy professional and work a 9 – 5… or are a full-time parent… it doesn’t mean you can’t trade. Try to apply these tips and you should be on the path to trading success.

Now, if you’re still unsure of how you can trade with a full-time job… and actually build your account up, then check out my latest trading lesson as I show you how to use my 5-step plan for building small accounts.

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