Safety first! That may seem like a ridiculous feeling in the penny stick niche.

On the one hand it is is ridiculous. After all, most of these cheap stocks are doomed to fail in the long run … I talk about this all the time. That’s why I trade penny stocks instead of investing in them.

Penny stocks are a particularly volatile part of the stock market. For me, that’s part of the appeal. You can experience enormous price spikes in a short period of time.

But it’s also part of my motivation to be conservative – especially now.

We have seen some big changes in the stock market lately. And although I believe that regardless of market conditions, there are always opportunities … Adapting to the changing market is key.

There is always some risk involved in trading. Nothing changes about that. But there are safeguards traders can take in a shaky market.

Here’s what traders need to know about adapting for the current market …

I got a lot of DMs and questions from Trading Challenge students about why I’m so conservative right now.

There are several reasons …

On the one hand, take a look at what is currently going on in the market.

The stock markets have had some difficult weeks. The main indices recorded some important hits. Last week the S&P 500 briefly lost all of its 2021 gains …

Tech stocks also fell.

In early February, Apple Inc. (NASDAQ: AAPL) was trading near $ 140. This week stocks traded below $ 120.

Then there is Tesla Inc. (NASDAQ: TSLA). It traded in the $ 800 in early February. Shares fell to $ 660 this week.

Yes, these are large-cap stocks. As a penny stock trader, you may think that they don’t matter.

Not correct.

You might not be trading TSLA, but you should definitely watch it if you’re interested in cheaper electric vehicle (EV) stocks. After all, they always seem to follow the industry leader.

Right now, people are scared of what’s going on in the stock market.

So, at the very least, you need to be clear about what is going on across the market. It helps you create a game plan for future trades.

Act ‘conservatively’ – all relative

Before I dive too deep into my “Safety First” campaign, I need to be clear …

Conservative trade is a relative term.

It’s not that I suddenly invested in blue chip stocks or anything like that. I still trade volatile winners with a high percentage. I just approach them a little differently in the current market.

Let’s look at an example of one of my trades on Monday March 8th …

Standard Vape Corp. (OTCPK: SVAP)

This OTC stock rose 200% after it was revealed that it merged with a fintech game. I have StocksToTrades Breaking News Chat to thank you for the guide. (Full disclosure: I am a proud investor and developer of StocksToTrade.)

I saw the highs drop and took my entry despite the fact that the stock was illiquid. The news had just hit – interest and liquidity hadn’t risen yet.

That’s what I mean when I say that everything is relative.

For someone with a long-term mindset about investing, this trade might seem like the scariest and riskiest thing in the world.

But that’s my niche. I wasn’t afraid to get into trading, but I was more cautious than usual with my approach.

For example, when I normally shop, I want the stock to test the daily high. If it does, it means that the day’s high may be exceeded.

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And if I think it will, I could stay in business longer. Or I take partial profits with me, but keep a partial position to wait and see.

In the case of SVAP, the daily high was not even tested. So instead of waiting around, I got out quickly. I still made a profit of $ 1,269. * But I wouldn’t sit around and hope for more.

A month ago I might have approached this deal differently. Adaptation is crucial – it is important that you adapt your strategy to the current market situation.

(* Please note that my trading results are not typical. Most traders lose money. Individual results vary. Trading is inherently risky. Before making a trade, remember to exercise your diligence and never again risk than you can afford to lose.)

Safety first: tips for traders in a shaky market

What’s going on in the stock market?

Is it a correction? Are we about to have a big crash? Or is it the beginning of a bear market?

Whatever happens, I don’t really care. I know there will always be opportunities. It’s about figuring out what’s at stake in the current market and tweaking your strategies.

In the meantime, here are some key tips on how to stay stable in a shaky market …

Don’t believe the hype

Promoters attract newbies, claiming the stocks they pump out are the next big thing. Don’t believe the hype.

I learned years ago not to fall for the hype. But I try to take advantage of the short-lived price spikes that the hype creates.

Sometimes I only hold a position for a few minutes … it’s all about grasping the flesh of movement.

This is the essence of my penny stock trading strategy … it has helped me make over $ 6.8 million in profits over the years. * And it’s the strategy I teach my Trading Challenge students.

It can be tempting to think that a stock is going “to the moon” … But I prefer a slow, steady approach. I want to take singles and let small wins add up over time.

It is good to underestimate

At the moment I’m in ‘protect, protect, protect’ Mode. I will happily underestimate a stock when it comes to staying safe.

Traders have been spoiled lately … It was insane, especially in the OTC market.

Some of my top students have made record profits. *

I’ve had several students who broke the million dollar mark in earnings in 2021 – the youngest two are Jack S., aka “Jack # 2” and Mariana. *

(* Please note that Jack and Mariana trading results are not typical. Most traders lose money. Individual results vary. Trading is inherently risky. Remember to exercise caution before entering into a trade and never risk more than you can afford to lose.)

But right now we’re just not seeing the same huge percentage gains.

For example, on Monday March 8th, 2021, I bought Ozop Energy Solutions Inc (OTCPK: OZSC).

It wasn’t an ideal setup. The dip was a little weak. But there was a recent contract announcement so I was still seeing value in trading.

Because of my reservations, I took a small position – and was ready to cut losses quickly.

I didn’t lose – in fact, I made a profit of $ 1,011. * Sure, I could have made more if I had held a bigger position or stayed in trading longer … But I’m not upset about it.

I’d rather underestimate a trade and make a small profit than get overly aggressive and lose big.

Keep it in perspective

Tim Sykes is standing in a crowd
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Remember … it is still possible to lose on a “good” trade.

Sometimes I dive in and buy a stock and it doesn’t pop off. In this case I reduce my losses (rule 1!) And move on.

Action is not about always being right. Nobody is right all the time – as you can see from my stats, I have a win rate of around 75%. That said, I’m wrong about a quarter of the time.

It sucks when you lose, but think about the big picture. Learn from the loss, try to figure out how to do better, and move on.

Remember – it’s a marathon, not a sprint. The market may be scary right now, but things can change quickly. Who knows … In a month, things could be very different.

Better safe than sorry…

I know, “Safety First!” is probably the last thing most traders want to hear.

Most traders just want hot stocks and get rich quick. But most traders fail.

So you can see why this is important.

When the market changes, traders may need to change their strategies. Adjustment is critical to survival in the stock market.

Ready to study the past to be better prepared to adapt and grow? Apply for my trading challenge.

Do you understand my “safety first” attitude? Leave a comment … I want to know what steps traders take to be safe in the current market!


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