Penny Stocks Trading

What should you learn before start trading penny stocks?

Should you learn how to trade penny stocks? No, you should not trade penny stocks, you should not focus any of your time on penny stocks. And I’m going to explain why. Let me first make a couple of quick disclaimers, though, I get it, if you are of the mindset of, I just want to get rich like now I want to get rich, just like two hours ago, get rich quick. If that is your mindset, then you put your priority close this page, that is not the type person that is not the type of trader that I am talking to you because quite frankly, you’re not a trader, you’re just a degenerate Gambler, and Penny stocks will be perfect for you. If you are somebody that says no, I want to turn this into a reliable source of income. I want to turn this whole financial market into you know, a side hustle or a full-time thing where it’s bringing in consistent money, then that is the demographic that is the type of person that I want to talk about in talk to you and show you what exactly is possible. So now that that’s out of the way, there are multiple reasons why you may be saying, well, Clay, I need to trade penny stocks because and I want to go to an old list. And first off, all those are valid, I can see and I know probably why you’re thinking penny stocks. And it’s the reason why I did penny stocks.

Why people like to start with Penny stocks?

So I also want you to note that I don’t say any of this from an I’m better than you type perspective because I was a total moron, Penny stock investor, Penny stock trader, when I got started, so much so that I thought I was gonna get filthy rich on a stainless steel muffler company. But that’s a whole nother story. But again, I’m not saying any of this from a Hey, I’m better than you perspective, I’m saying it from Listen, I’ve been in the trenches. And there are better ways. And the better ways. What I’m going to talk about over here is relatively new. So when I got started, I guess a little bit in my defense and perhaps a little bit in your defense if you’ve been in the market for more than a year. And you’ve been struggling and just kind of inconsistent. And you know, you’re just trying to figure out a way Well, this is a new opportunity that’s, you know, has just been created, quite literally, and it is now available to you. But let’s go kind of through the reasons why a lot of people do get started in penny stocks and why you may be started, I’m going to compare it to this other avenue that’s out there. And at the end, I’ll tell you what the Avenue is and how you can get started with it. But don’t worry, when I say get started with it, I will not be pressing you toward some sort of content that you need to pay for the content that I will push you to that’ll help you get started with this is free. So just want to get that up, you know, upfront, too. So the first reason why a lot of people say well, you know, I need to do penny stocks is because obvious right here. I just don’t have a lot of money. And you know what, to be fair, yeah, Penny stocks. Fine. Penny stocks are where a lot of people go because they just don’t have a lot of money. But over here, the same thing. You can get started for even less money with this other avenue.

Start with penny stocks trading

So it’s pretty much a wash but a slight advantage of this other thing because you could get started for $50 $100. Whereas with stocks, usually, brokers are like wait a second, no, you need at least $1,000 to open an account union at least some sort of minimum, not all the time, but like I said, pretty much a wash. But this is where the big problem comes into play. And the problem becomes the good old PDT rule, pattern day trading rule if you’re not sure what that means. All that means is you’re only allowed to trade make certain day trades a day trade being defined as buying and selling a stock within the same day, you can only do that three times per five-day rolling period. In other words, you can’t do it. I mean, that’s a joke. It’s a total joke. It’s disastrous government regulation, but I won’t go into that point or being there’s the PDT rule and you can’t go and select all the brokers that are based out of the United States, they have to follow that PDT rule. And there’s no way around it. Now there is a way around it where you can get. I mean, there are ways around it. I mean, you could technically go offshore, you know, put your money in some other broker that’s not regulated the United States. And but I would never, I will never recommend anybody take their hard-earned money and put it offshore. If that’s what you want to do. That’s fine. But I’m telling you, there’s a better way Why? Well, here we have, actually let’s do this. Let’s use red for this because this is no good with penny stocks. You have to worry about that pattern day trading rule because they are still stocks. But over here, we have a big winner. Why? Because this other avenue has no pattern day trading rule. Let me say that again. This other avenue has no pattern day trading rule. You don’t have to worry about it. You don’t have to go offshore. You don’t have to do anything fancy. There just simply is not a pattern day trading rule. at all, and that’s a great thing. And then the other thing I see is Oh, well, short. shorting just means you want to make money when prices go down, and I get it, the sales pitch is so fantastic. All these penny stocks are trash, they all eventually go down. So you just want to short Oh, yeah, and that’s true. But sometimes they’ll go up 500% beforehand before they go down. And people just get crushed, and roasted, and all that. And then there’s the hidden secret there. So there’s always this Asterix, that gets left out a lot when it comes to shorting penny stocks, again, making prices when penny stock or when the stock goes down. And that is, first off, you just have to find shares that are available to short. And even if you can find them, you know, if you can locate them, you know, some trading terminology that locates on the shares to short, there are ridiculous fees that you have to pay. So I want to short 500 shares I’m in is it is very, very easy to be getting up over 1020 3040 $50 in commission because you want to short, some sort of penny stock. Why is the commission so crazy, because it’s highly, highly risky. Any broker that’s willing to give you a penny stock to short there, understands that risk. So they because they’re a profit business, right? That’s what brokers are, they’re going to manage and hedge their risk too. And one way they do that is by throwing out all kinds of fees and all that sort of stuff to help them manage their risk. If, if you can even find a broker that has to do all that. So again, this it’s Is it possible? Sure. Sure. It’s possible, but a lot of these things are offshore. And it’s just, it’s so complicated. And there’s a lot of risks just from the fees offshore.

Learning the basics about penny stocks

So again, just know not when it comes to if you want to make money when prices go down. Penny stocks is a possible sure it’s possible, just like it is possible to do some day trading, but to a very limited extent when it comes to the shorting to a very headache, inducing extent. But then over here with our other avenue, no problem at all, you can make money when prices go down, you don’t have to pay any extra fees, it’s all the same fee structure, which is very low, to begin with. And it’s just not a big deal at all. It’s just part of how it all works. There’s not you don’t have to go searching, you know, to find the locate nothing. It’s just no big deal. It’s got it’s like, huh, yeah, just one short, that’s it. And then the final thing, time. Meaning why I have a day job. So I can do penny stocks. But I’ll probably need a phone app because it’ll be difficult. After all, the markets are only open for certain hours, and those hours conflict with my you know, nine to five jobs or whatever. So time, again, Penny stock. I mean, there’s nothing here, they don’t offer any sort of advantage when it comes to, you know, any sort of schedule or anything. This other avenue, though, they’re open, 24 seven, now, I want to highlight the word essentially, they are closed on Saturdays, and there are little bits and pieces of when they’re close. But for the most part, they are essentially open 24 seven. So if you do have, I’m going to put on quotes again, just to remind you, almost 24 seven, but the point being is if you have a day job, or you have something that conflicts with, you know, the stock market hours, there’s this other avenue, the other market, that you can trade after work, you can trade, you know, at night when you’re just I mean you can trade whenever you want, for the most part. So from a time perspective, easily goes in this favor. So what is this other thing that makes you and that you can get started for a low amount of money, where there is no pattern day trading rule where you can short and you don’t have to jump through hoops, you have to pay extra commissions, you don’t have to do any of that.
Then it’s essentially open 24/7, this is what is known as the futures market. Now before you go running away, and this is why I want to tell you at the end, the future it’s not complicated. But the one difference here and this is what like I said has been created within the past year is micro futures because yeah, to be fair, up until the micros were created, futures were just not that viable because the way they function and work very, very difficult to manage risk where you could have a small amount of money and then it could just be poof, gone just like that because of the way they function. But because of the creation of the micros that everything is changed in that regard. You may be thinking right now, half futures, those are copycats. Now, this is where I want to direct you down below. I mean first, you just have to understand how few futures function, stuff like that. And then you’ll hear about the micro futures. And then from there, that’s going to give you a good Launchpad and it’s going to at least open your eyes you know at least be aware of At least give it a chance. That’s all I’m saying is before you just go gung ho with penny stocks and think that’s the answer, at least learn about futures, because there’s no risk. Okay? So if you go through it, you’re like, Ah, now, I don’t want to do that. Well, at least now, you know, at least you can go on to the penny stocks. But in all honesty, I think micro futures will be the death of penny stocks. Because like I said, there’s that population of degenerate gamblers, that they’re not here to create a stream of income, right? They’re not here, this is the side hustle that I want to work hard at that I have a passion for it so that I can, you know, create a reliable and consistent stream of income. Now, they’re not here for that they’re here to, let’s have some fun, I don’t want to fly out to Las Vegas that I have to pay for a plane ticket. I’m here to gamble, baby, let’s go.

Start with low risk

So there’s always going to be the degenerate gamblers out there. So there will always be some sort of penny stock market. But I think my opinion, the penny stock market is just going to shrink more and more and more, because in my mind, the majority of people that I come across, do want to take the market serious, they do want to give day trading an actual shot. But it’s very hard to get day trading an actual shot when you have that stupid PDT rule out there. But with this with micro futures, you can day trade as much as you want. And you can give it a real go, you can give it you know, a try, we’re sure I’m not saying you’re gonna make millions upon millions of dollars, but at least you have a chance to day trade as much as you want to build strategies and systems at work. And then over time, you can scale upwards and get bigger and bigger. But with the penny stocks, it’s just difficult to be a day trader because of that PDT rule. And then you have to get things to get way, way too complicated. So like I said, All I’m saying is give futures a try. Give them micro futures to try. Because there’s no risk to you, other than we’ll call it two hours of your time going through the class and learning about them and seeing if it’s something that you think fits your interest. And I want to be fair up front, again, if I’m pretty sure no degenerate gamblers are still watching this. But if you are a degenerate Gambler, I want to get rich quick, I want to get rich now that don’t go through the class, you’re not going to like it, because that’s not what they’re designed for. They are designed for somebody that wants to learn how to become a profitable trader, they want to build a system to create income for themselves. That’s what futures are going to be geared towards. Because that’s an actual market. These are based on actual market dynamics. Were as penny stocks are just garbage. And not that I’m saying you can’t make money on garbage. But there’s just so much better ways, assuming again, that you want to take all this trading stuff very seriously. So if that’s something that you would put yourself in the camp of, I don’t think you should learn about how to trade penny stocks, I think you should learn about how to trade futures and specifically the micro futures because that’s going to give you so many more advantages over what somebody that’s looking to trade penny stocks is going to have. So let me know. I mean, are you going through this debate right now? Maybe you’ve never heard of the future or the micro futures before?

Read more: https://bullishpenny.com/2021/07/14/are-penny-stocks-worth-it/

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