by Stevie Swai
The fact that you even find yourself on this website most probably indicates that you are either already a trader/investor and you are following Trader Scott’s fantastic posts on markets and trading OR you are interested in trading and have even perhaps starting to dabble in it. If you find yourself in the latter category, this article, and the articles to follow may just be for you.
This website was created to share Trader Scott’s expertise as a trader and his insights into markets and as far as we can tell, from the messages received, the website has been warmly embraced by our many subscribers and general visitors. We’re really happy you’re enjoying it and it’s been through your comments and suggestions that we are finding the inspiration to grow the site in various directions.
One of those directions has been identifying small stocks setting up to make significant moves and daytrading them. We’ve shared many symbols with our paid subscribers in the past month or so that have brought in some pretty impressive profits and many of you have traded them and done well. Others have failed to identify good entry points or flat out did not trade them out of fear or other reasons.
So, seeing that daytrading, especially daytrading cheap and crappy little penny stocks is not exactly Trader Scott’s forte, I’m going to take the ball on this one. Cheap and crappy is not beneath me. Cheap and crappy oftentimes puts stars in my eyes, or dollar signs rather when they set up and double, triple, or quadruple in a day. Even as little as a 20% profit on a very liquid stock will not only delight, but add a nice brick in the building of a small account.
So before we launch into the actual trading of small stocks, you have some questions to ask yourself, assuming you are new at this game:
#1 The “Why”
Why do you want to trade your own account? Why not let a professional do it? Why do you think you CAN do it?
#2 The “How”
How will you fund your account? How quickly do you expect it to grow? How will you deal with losses? How do you approach trading? How will you deal with letting greed get the best of you? How well do you cope with stress? How much time do you have to invest? How will you choose your trades?
# The “What”
What are your expectations? What does a good profitable trade look like to you? What will you do with a trade going bad? What resources will you use for support? What method will you use to off yourself’ when you lose your account? LOL, just kidding–so I just threw that one in to see if I have your attention and apparently I do.
The point is that it is very important that you approach trading in a professional way and with the least amount of emotional attachment as possible. There are a lot of psychological factors to consider; your psychology will be an important actor in your success as a trader. So ponder on the above questions and check back in a day or two and we’ll discuss setting up an account; trading a small account and the limitations you can expect to encounter; choosing trades and lots sizes for a small account, etc.
I’ll be reading☺ thanks!
It’s gonna be yuuuuge!