It might sound a bit backwards, but “going small” in order to get “big results” is something that is overlooked in the world of trading all the time. Our guest, Chad (same name in chat room), explains this bizarre concept via the journey he has been on, and is currently still exploring. Although only being involved in the markets for a relatively short amount of time, Chad has already been through a lot and learned many valuable lessons which he graciously passes on to the listeners.
Chad first got interested in trading after setting up a Roth IRA and decided that he wanted to make his riches with penny stocks. He did some googling for hot penny stocks and eventually found a list of high volume names and did his message board research to see what others thought would go up.
After finding quick success in his first penny stock trade, his profits soon turned into losses and that’s when Chad decided he needed to learn more about technical analysis before he traded again.
As he went through the courses, he was paper trading alongside of it (which we recommend). However, he was not using realistic trading size so this did not help him prepare for the live market when he decided to return.
After a few rough trades when he went live, Clay helped Chad realize he could trade smaller than 100 share lots which still helps him get used to having money on the line (and deal with the voices that appear when money is on the line).
Even though Chad is in the beginning stages of his journey now, he is taking steps to ensure he is forming good, consistent habits which will eventually turn into long term consistent gains. He, like many others, approached this as a way to get rich quick but was quickly humbled by the penny stock market. He knows what he excels at and where he is weak. With that knowledge he is capable of fixing the issues and improving.
“There was about 2 weeks where the stock doubled. I thought ‘this is going to be my new job.’ The next day it tanked.” tweet this quote
“Here I am paper trading 1000 shares and making 2,600 dollars in a few minutes. It was very unrealistic.” tweet this quote
“One of the things I’ve learned from you guys is to create good habits.” tweet this quote
“Now when I take a loss it’s just like ‘okay, it broke support or resistance and I don’t want to be in it anymore.” tweet this quote
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