Lessons From A Penny Pro

You’ve Been Lied to About OTC Markets Stocks

The other day I booked a mean 22% gain in a stock called in a tiny company called MCTC Holdings (MCTC).

In total, the trade took a few short days…

I bought the stock Friday afternoon and sold it Monday morning.

 

(Hey if you missed this trade too bad…but I do have new alerts on the way! Click here to start receiving them)

 

I utilized a super simple strategy that you can learn more about here if you’d like.

However, this opportunity was off most people’s radar.

How so?

Well, the company trades on the over-the-counter markets… home of some of the biggest and best companies in the world… as well as… some of the shadiest companies in the world.

And you know what else?

There are over 10,645 securities that trade on the OTC Markets…

That is more than 3x the amount of stocks that are listed on the New York Stock Exchange. 

And if you want to consider yourself a trader… then you simply can’t ignore the trading opportunities that OTC stocks offer.

However, there are a few things you need to know before you jump in…

 

Wall Street Has Got It All Wrong With OTC Stocks

 

You’ve probably heard this before, Stay away from stocks listed on OTC stocks… they’re dangerous and you’re probably going to lose money.

Well, that’s just nonsense.

You see, I actually love trading these stocks because my easy-to-follow patterns work in them.

However, there are some things you need to know about OTC stocks, if you want to start trading them.

  • Not all stocks listed over the counter (OTC) are bad companies… for example, companies like Adidas and Nintendo are listed on OTC Markets.
  • You need to conduct your due diligence.
  • OTC Markets provide “Warning!” signs for you, and if you see that… you should probably avoid trading that stock.
  • If it’s your first time looking into OTC stocks, make sure you have someone to guide you along the way… because they’ll know what to watch out for.
  • Have a detailed trading plan. This should include your buy zone, stop-loss area, and profit targets.

 

When you just ignore OTC stocks… you could be missing out on a lot of trading opportunities because there are over 10,000 securities trading on OTC Markets… and they actually do a good job of breaking them down into different tiers:

 

  • OTCQX Best Market is the highest tier on OTC Markets. Companies included in this tier must meet high-level accounting and reporting standards, as well as financial requirements. Additionally, they must be in compliance with U.S. securities laws.
  • OTCQB Venture Market is the second tier. Companies included in this tier don’t have as stringent requirements as the top-tier… but there are still certain thresholds that need to be met.
  • OTC Pink doesn’t have minimum financial standards, and is often thought to be the most challenging for traders.

If you want to learn more about OTC Markets and penny stocks, make sure to check out my latest eBook, The Stock Trading Starter Pack.

 

Now, when you have tunnel vision and just focus on a specific basket of stocks, like Apple (AAPL), Microsoft (MSFT), Starbucks (SBUX), and all those other large caps…

… you’re actually ignoring some fast movers and potentially large winners.

When’s the last time you seen AAPL move 20%+ in a day? It doesn’t happen too often.

However, with OTC stocks, there are so many stocks that move 20%+ in a day… sometimes they even move 100%+…

… and we’re able to spot these moves before they happen, using my simple trading strategy.

 

Yes, You Can Make Money Trading OTC Penny Stocks

 

Keep in mind, the stock I trade was MCTC Holdings (MCTC)… and it’s listed on OTC Pink, and if you’re just starting out… you probably shouldn’t look to trade stocks like these.

However, my clients get up to speed quickly about OTC stocks… and they understand the lay of the land… once they’ve figured out how these stocks trade, they’re able to place trades.

If you want to get on the fast track and discover new trading opportunities, click here to get started.

Getting back.

Now, these stocks move fast… and if you’re able to capture the move, you can lock in 20% winners pretty quickly.

For example, on Friday, I alerted traders about the trade… letting them know I was buying it at $0.152… and looking to take profits at 15%.

 

 

Come Monday morning, I was locking in a 22% winner.

 

 

Now, you might be wondering, Jeff how did you spot this trade… and what exactly were you looking for?

Well, check out this daily chart in MCTC.

 

You see the box there?

Well, I was looking at those lines… which told me I should look for an entry in the stock…

… thereafter, I developed a trading plan and let traders know I was keeping an eye on this one because it could be a runner. Once the stock started to move, I bought shares and it actually moved above my profit target!

At first glance, you might not think anything of those lines and the candlesticks… but once you know what to look for, it gets easier to find winning trades like the one I had in MCTC.

Now, I actually provide clients with video watchlists of stocks to keep an eye on… and what exactly I’m looking for. So they know ahead of time which stocks to potentially trade and they can game plan accordingly.

 

 

Not only that, they have access to the chat room, and they can ask questions about a stock or a specific pattern I’m watching… if you think these tools and my easy-to-follow trading approach can boost your returns, and achieve success like these traders…

 

 

… click the button below to find new, exiting trading opportunities.

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