Sell off is not as bad as I expected. I figured we'd see 3s and a strong possibility of 2s being sold into, in the first 30 minutes.
Welcome to Penny Land, as in life, the most important lessons are learned at our own expense. Like all who trade for any length of time at this level, I have had to pay for my education as well.
Most who trade at this level, including the much younger me, are looking to hit the game winning shot, with every stock purchase,
when in reality the odds are 1000 to 1 (at best) against us.
My education has taught me the following:
HAVE A PLAN..... STICK TO MY PLAN
I used the KISS philosophy (Keep It Simple Stupid) as the basis of my plan. Everyone's plan will be different but they all should start with.
1. Make money
How you decide to get there will be your PLAN, without a plan, your chances of making money trading pennies is no different than buying a LOTTERY ticket.
My most difficult lessons to learn:
1. SELL at a LOSS.
2. TAKE PROFIT: SELL for a GAIN,
this sounds silly, but too many times I had a chance to take profits of 100% to 500 %, but held all my shares only to see the pps fall back to my entry level or below, which typically lead to discontent, which lead to trading on emotion, which lead to larger losses versus smaller PROFITS. A small PROFIT is better than ANY LOSS and there will be losses.
3. Do not get emotionally invested in any stock, as the markets are manipulated at every level and in Penny Land there are less rules and guidelines leaving more gray area to manipulate.
4. PATIENCE when buying. (this is still my biggest weakness) I never wanted to miss the next run, which usually lead to me buying on the ask versus setting my entry price and being patient for order to fill. The runs I have missed are meniscal to the money I saved by buying with patience.
Growing up we all have been told at one time or another "Learn form someone else's mistakes" unfortunately most of our species, myself included, have to experience the mistakes first hand, before the lesson is learned.
Trade here or invest here for the long term, just do so REALISTICALLY and you will have a better chance to make a profit and keep your sanity.
Longs stay strong, traders trade, flippers flip, whichever you are, STICK to YOUR PLAN and respect the right of others to disagree.
Good luck to all.
AI
