Table of Contents
Think you’re {prepared to} {create a} trade?
{Not} fast. {Frequently}, we act without planning and thinking things out.
{When you} never {desire to} drag {the feet}, acting without forethought {could be} {a whole lot worse}.
{In order} you’re on the precipice {of one’s} next trade (and every trade), pause to {consider} these seven things and yes, watching this {trading} guide and {by using this} free tool {before each} trade {can help} your {probability of} success dramatically.
{It could} sound like {a whole lot}, but {after a few years}, pre-trade planning {can be} an automatic {section of} your process. {As time passes}, this practice can {enhance your} performance and {help to make} you {an improved} penny stock trader.
1. Am I prepared?
Before any trade, {consider} {in case you are} truly prepared, on every level from potential risk to potential reward.
- First, {think about your} readiness on a very literal level.
- {Perhaps you have} gotten enough sleep?
- Did you {awaken} early enough {to possess} some {peace and quiet} before {you have} to trading?
Really {take the time} to evaluate {in case you are} mentally {ready to} trade {at this time}, or {in case you have|for those who have|when you have|should you have} a million things {going right through} your mind {that could be} distracting you from making {the very best} decisions. {You will need a} clear head to {be considered a} good trader.
Second, {think about your} preparedness on a deeper level:
- Are you prepared as a trader?
- {Perhaps you have} received {the correct} training and education?
- Do you understand the stock, sector and overall market enough to confidently {get this to} trade, or {are you currently} just {going for a} stab {at night}?
{Some} {very cheap stocks} don’t trade on the major market exchanges, {you may still find} some basics {that you should|you need to} understand {if you need to|in order to} {achieve success}.
The Timothy Sykes Millionaire Challenge {was made} {to supply} an educational resource for traders {who wish to|who would like to} succeed.
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2. Have I done my research?
{Among the} key things I teach my Trading Challenge students is {you need to} {research your facts} BEFORE YOU RISK {YOUR DOLLARS} IN THE MARKETS.
Don’t {get into} {an individual} trade {with no} some basis of knowledge and ideally the more {the higher}.
{In the end}, {you almost certainly} wouldn’t even {visit a} restaurant without giving it a cursory look-up online to see reviews.
Why {can you} invest {your cash} in a stock that you haven’t {tested}?
Download a PDF version {of the} post.
{It might be|It could be} annoying {to analyze} a stock {that’s} trading for pennies, but often {slightly} {little bit of} digging can reveal information {that may} {inform you} if it’s {worthwhile} or not.
Cut through the BS; don’t believe {what a} self serving stock promoter {lets you know}. Think {on your own} and do {your personal} research before {investing in} an investment.
3. {Just how much} {does it} hurt {easily} lose {everything}?
{Have a} step back {and have} yourself this question: how {would it not} feel if this stock went south {and you also} lost most or {all the} money you invested?
No, this exercise isn’t {designed to} scare you off {or even to} discourage you from {creating a} trade. Rather, this {could be a} method of {making certain} {you’re} properly mitigating risk.
{In the event that you} haven’t even {considered} {the chance} or are pushing it to {the trunk} {of one’s} mind, {you might not} be taking {all the} proper precautions.
With the potential of loss looming, {you may be|you could be} inspired {to achieve that} extra {little bit of} legwork to make {sure} this trade {may be beneficial}.
4. Am I forcing this trade?
In your {need to} {make money}, are you {gaining} blinders {for some} serious {warning flag}?
To really find success as a trader, {you need to} keep {an even} head {and also} think rationally and logically, {think about} yourself as a retired trader and ONLY {keep coming back} {in to the} market {whenever a} setup {is indeed} good you’d feel guilty missing it.
You don’t {desire to} lose your patience as patience is what truly pays. {Additionally you} don’t {need to get} cocky {if not} {the marketplace} will humble you {Rapidly}.
Approach every trade as {a distinctive} transaction. Sure, {you may use} the past {to teach} current and future decisions. But don’t {believe that|believe} {in the event that you} force it {this time around} it will {find yourself} {enjoy it} did {the final} time you made a profit.
5. {Will there be} a pattern here?
{The truth is}, every trade {is exclusive} {and really should} be traded {this way}.
But {simultaneously}, history often repeats itself.
{With regards to} penny stocks, {there are specific|there are particular} patterns which, {in the event that you} memorize them, can inform your trades and help {get you} consistent profits.
{In my own} free guide entitled Penny Stocking 101, I {review} {some typically common} patterns and potential {techniques} {it is possible to} react as a trader; I also cover this in {greater detail} with students of the Tim Sykes Million Challenge.
{As soon as you} {obtain the} hang of it, {searching for} patterns {is an excellent|is a good|is a superb} {solution to} really look at a potential investment and evaluate {whether} it’s {an excellent} fit {for you personally} {at the moment}.
6. What would my mentor do?
If you’re experiencing {an instant} of doubt or you don’t {know very well what} to do, {make an effort to} channel your mentor.
What would {she or he} do in {this example}?
The coolest thing about my trading chatroom is that {there are many} Millionaire Traders there during market hours and it’s been great {to view} newbies bounce ideas off {more capable} traders.
{Generally}, {this may} take you {from your} head enough {to obtain} some distance from {the problem} and make {the proper} choices in your trade.
7. {So what can} I {study from} this?
{A lot of people} think about what they learned {following a} trade is complete. But actually, there’s {lots of|plenty of} value in considering {everything you} could {study from} this experience before {you truly} buy.
{For example}, if you’re trying {a fresh} {approach to} investing, {jot down} the questions and concerns that you’re having as you {feel the} process.
{It is possible to} revisit these questions and concerns {following the} trade is complete, {and you’ll} {recognize that} you’re better informed now.
{It could be} hard {to believe} in {heat} of {as soon as}, so {the next time} {when you are} wondering {exactly the same} things, {it is possible to} think {back again to} your previous experience and apply {everything you} {have discovered}.
Additionally, these questions {can provide} you direction as {you keep up} {together with your} studies. {You might} realize that {you have to|you should} {find out more about} selling short, {for instance}.
{Going for a} few short moments to pause {prior to making} a trade {could be a} good thing. {Everything you} lose in your quick reaction time {can help you save} from losing {due to} acting too rashly. {As time passes}, these questions and considerations {can be} ingrained, {as well as your} {efficiency} can improve as your instincts become honed.
{Perhaps you have|Maybe you have} asked yourself {these} questions before a trade {and also have} you ever not asked these questions…then tell me which {of the} trades {exercised} {much better}?