Market

Lessons on Trading Penny Stocks Conservatively

Trading Penny Stocks Conservatively: Key Takeaways

  • Learn how I called a massive Monday morning dump. (The promoters were wrong!)
  • Even in a slow market, I can still profit by trading conservatively.* See how I do it…
  • Check out my newest video lesson — I made over $3,000 on Monday, October 11, and stayed safe…*

It’s a scary market right now — so you MUST learn to trade conservatively. A lot of newbies started back in 2020 when we had the hottest market since the dot-com boom. It was crazy…

But too many traders learned bad lessons. They think every first green day is a done deal or that every breakout will go to the moon. Nope. Now that the market has slowed down, people who learned the wrong lessons are giving back profits.

I want you to block out the promoters and the scammers who tell you to hold and hope. That’s how you blow up your account. Don’t listen to their lies and false promises.

Instead, find out how I stay safe and profit in an ugly market. Let’s do this!

Key Lessons on Trading Safely

warning signs of diluted shares
© Millionaire Media, LLC

You’ll have to watch the full video to see my detailed examples and trade reviews. Here are the main points I want you to pay attention to while I explain my thought process:

  • When and how to lock in profits on failed breakouts…
  • Why you can’t trust sub-penny stocks…
  • Understand that small losses are part of the process…
  • Breakout with no catalyst? Be wary…
  • Why a failure at a key level is a big red flag…
  • When in doubt, get out!

See my full lesson on Profit.ly here.

A lot of people will tell you that I sell too soon and that I’m too safe.

They’re usually right. But that’s how I trade. It’s kept me profitable for over 20 years in the stock market.*

Sometimes I miss out on the big spike because I’m out too early. That’s OK. I’d rather take a small profit and be early than hold and get crushed.

You must think about what could happen if you’re wrong. That’s what the promoters and Twitter pumpers aren’t telling you…

Why You Should NEVER Hold and Hope

Check out the chart for Infrax Systems, Inc. (OTCPK: IFXY) below. A lot of chart purists were hyping this as a swing trade over the weekend.

I didn’t hold it overnight, but I did trade IFXY Monday morning.* I was warning traders about the dangers of a sketchy weekend hold.

Maybe earlier this year I would have felt better about it. But in this slow market, a breakout without a catalyst is a recipe for disaster. I was nervous about the possibilities come Monday morning.

Sure enough, look what happened … Monday started with a big red candle. It dumped the price all the way back to noon trading levels from the day before.

IFXY stock chart
IFXY chart, 2-days, 1-minute candles (Source: StocksToTrade.com)

This is a perfect example of why you need to stay skeptical. These are sketchy penny stocks.

Sure, you can potentially profit in this choppier market — if you learn the right lessons and trade scared. Always remember what you’re buying. Don’t fall in love with junk stocks.

Take the single or cut the loss and move on.

My goal is to maximize profits AND stay safe. So I don’t waste my time on bad setups. I recommend you do the same.

Learn from this lesson and choose your level of commitment to your education on Profit.ly.

Ready for the ultimate education in penny stocks? Apply for the Trading Challenge.

Comment below to share how you’ll trade conservatively and protect profits. Tell me your plan. I want to see that you’re learning.

Disclaimers

*Results are not typical. Always do your own research as trading is inherently risky. You should not mirror the trades or alerts of the instructors and attempts to do so may result in substantial financial loss. Past performance is not an indicator of future results.

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