Diversity is the name of the game when it comes to the stock market, and as the classic saying goes, Never put all your eggs in one basket is a rule that should be drilled into every stock traders brain.
One of the most common questions I get about my private trading group, The Inner Circle, is in regards to the types of stocks I cover. Given what I’ve said about diversity and not putting all your eggs in one basket, I’d be a total hypocrite if I then claimed to only follow a certain price range of stocks, sectors, pattern, etc.
If you are wondering “what types of stocks” my trading group follows and plays, the answer is…
Anything that looks like it has the potential to present us with a profitable opportunity!
The Inner Circle follows a couple basic principles. First, we deploy the most important rule for a stock trader and listen to the markets, NOT our emotions. Second, we are all stock trader politicians in the way we think.
I’ll be the first to admit that “talk is cheap”, so instead of sitting here and proclaiming just how diversified The Inner Circle actually is, why don’t I just show you with some actual examples?
Real fast, a quick little introduction. Every week I send out my Power Profit Scans to the group via my exclusive newsletter only available to members. In this particular set of scans, we will focus on two of the alerts.
The first trade idea, BlackBerry Limited (BBRY) was initially alerted appearing as the following (this is the ‘actual’ technical chart that was put into email)…
The main point here is the price and type of stock. This is a big board stock that trades on the NASDAQ. It is a very well known company who essentially anyone on Wall Street has heard of.
The next point is, if you are someone who only wants to play big board stocks with massive liquidity, this would have been an extremely beneficial trade idea for you. Looking below, you can see how the following days played out on the updated technical chart.
Moving onto the next trade idea (remember, this was in the SAME group as the chart above), we have Strategic Global Investments, Inc. (STBV). If you are thinking “who the heck are they?!?!?”, then PERFECT! That is what I want you to be thinking.
This will show the range and diversity of The Inner Circle. Below you can see what the original trade idea technical chart looked like…
No worries. You do not need to go to the eye doctor. You are seeing things right. We just went from talking about an established company that everyone has heard of to a company that is trading at $.0018 per share.
If penny stocks are not your style, then I totally understand. In fact, you can see up above on the annotation of the alert that I specifically make note that “if they are your cup of tea”. Penny stocks are not for everyone, but they do provide stock trading diversity. Remember, the #1 goal I have for the trading group is to provide…
Anything that looks like it has the potential to present us with a profitable opportunity!
So… how did this unknown penny stock company perform the following week after the trade idea was issued? Let’s take a look…
First off, let me be totally honest. Am I going to sit here and tell you that I promise to deliver 340% winners each week? Absolutely not. Anyone who makes that promise is a liar.
However, the point I do want to make is that “this” is why I’m a big believer in diversity… even if that includes the pieces of garbage known as penny stocks. I personally did not trade STBV, and I rarely do trade sub-penny stocks, but I know many members of the group did and ended up doing very well.
You may hate penny stocks and think they’re a joke, but I still have you covered. You could have just focused on BBRY and made a handsome gain on that one. At the end of the day, my goal is diversity and offering true range, and there is no better way to display that than by showing actual examples of one stock trading for multiple dollars, to another stock trading for less than a penny.
You can learn everything you need to know about the Inner Circle HERE.
