Trading Tips & Tricks
Reeper's Hot List
1. Be a sponge.
Find the few honest solid traders that remain and pay attention, don't be critical. Following is not a terrible thing for reference. Take notice to the information they post and where it came from. Many will not help others so you may have to dig DD on some individual postings. More times than I can count we see familiar traders in some of the same trades. If its luck great, if it was a particular event add it to your trigger list. Arguing with armatures won't help. Many follow some sort of reasoning, likely after the fact. your already behind the game, don't chase. Even if you missed the run absorbing the information from a good trade can aid in realizing a catalyst that caused momentum. Always stay open minded to new ideas and know the common games played.
2. Search Investopedia and Learn Terms
Start with typical filings and work your way deeper. You want to use SEC appropriate filings, even if there are amendments this site is a good start to get familiar with the standard methods and rules. Many traders lack the actual background of understanding filings. Every company works differently. Make a list of normal practices and the order filings are posted. When something is missing, It's either coming soon or some cause of concern or been missed for a reason. This will take practice to know each scenario. What I call "follow the worm hole", 27 windows of links later I found out why. Bookmark DD sites and always have a list of resources readily available in case. (my basher battle mode)
3. Know the Triggers
Filings and due dates can be triggers, Form 4, 8K, 10K, 10Q, S1 and so on. Also Volume, Dilution, News. Know the difference of each. A normal 10K could have huge events listed and no one picks them up. It's not a conspiracy every time, you may have actually found something. Annual information (10K) is a good starting point, then follow filings to current dates. With so much info to sort start with levels of importance. Find the AS, OS, Float, then any adjustments or changes along the way. Look back to previous year and filing dates. Most companies will file orderly as previously posted the year before. Dates will change but weeks are a good window. Refer back to any bookmarks and keep important information easy to find for yourself.
4. Practice Charting
Likely the most important is chart style. Many use candle, bar, line or Heikin Ashi charts. You may want to research them in detail before growing a method to practice. Most know I use Heikin Ashi and could write a book on why. Even though its by preference it is the basis of all trading practice for myself. Go back a year on a chart and practice. You have a timeline to show whether your wrong or right. Draw some base and resistance lines and a projected PPS with an exit plan. Find why the trade broke down or what catalyst occurred for higher movements. See if you stayed to long or missed the bus and why. Follow a current play and make a chart every time your interested. Whether you buy or not is irrelevant. Make a prediction and chart the lines to your best ability. Come back weekly to see what happened, over time you will need adjustments to become more precise. I always liked to leave original lines as proof of work then correct anything I misread. Also learn the basic indicators like Pennants, engulfing, and continuations. Practice does make perfect.
5. Dilution
A trigger that has its own subject. 90% of all stocks use dilution to fund the growth process and annual operating costs. Learn the difference in what is posted as normal selling and toxic lending. As we all know notes can destroy a stock. We also hear many shouting dilution but for themselves have no idea why or how much, go find it. There is also insiders, options, and warrants. Knowing the total possible could save you a lot of money. (10K) is your go to guide for the year, look for any additions or cancelations in additional filings and stay current. Even a 10K/A will show up occasionally. Stay on top and take notes see (7).
6. Trading Practices
Right or wrong you need a method of trading and plan of exit or goals. Do this before you trade or buy. Stay away from the chase, even if its a golden movement your entry will usually come back closer than the chasing Price that day. Keep fear and emotion separate from investing. This is likely the most challenging aspect of traders. It only gets better with time and practice. Don't beat yourself up on one trade, move on and learn from mistakes. This is where the definition of insanity comes in play. (insanity may be defined as “doing the same thing over and over and expecting different results). Even good traders can't know everything so be accountable for mistakes or influences. Adjust methods accordingly and don't follow the herd, follow your own DD. (know what you own).
7. Program Assistance
In todays technology age there are many programs and apps to aid in trading. Decide what works best for you. Buying a $150 screener or subscription might not help at all. Start with the basics and see what is missing. Incorporate programs as part of trading practices. Example: I use Etrades Pro, Sticky notes app on windows desktop for all DD notes, tradingview as a charting guide, edgar and OTCmarkets to begin DD. Many would be shocked to learn I use no other programs, screeners or live L2's to trade with or make picks. May never work for anyone but is the way I have self taught myself and prefer it as simple as DD, Charting and sticking to the plan.
So much more I could go into detail with, guess a book is due out in a year or so. Working on some local seminars for basics to penny trading and have a few new traders helping me to relearn how I made it this far. Aiding me in putting it all in order to make sense of it all. Hard to go back in sequence and remember what made me into a six figure trader in 4 years.
Hoping to launch a subscription service soon as well to follow hot trades, learning fundamentals and help all traders. Will be cheap as can be too. Some capitalize on spamming for money I want to see everyone make money along side us. I will post the site here first when its ready.
Some personal history and stories I tell the new guys that ask how. Likely an intro segment to the book.
I started trading with $100.00 yes only $100.
No background, no one I knew to aid me, just open an account and got to work part time trading.
I traded gutter stock for the first year and learned that filings were causing most my wins or losses. Charting helped but at that point mostly clueless to all the signals. Learned that adding a zero would also help in covering losses and averaging down to stay near current average so when it did go up I wasn't breaking even to get out. Learned that averaging down on 2B OS dilution scam was not a smart move either and made adjustments for the following year.
Lost most of the $100, so I deposited $500.00 year 2 and began to move into more active and attractive stock. Staying away from trip stock seemed to make no difference 2% to 30% gains was about normal and some 50% losses finished off the year about even and was happy I didn't lose it all.
Finally year 3 deposited another $500 to my $585 I had and thought I'm going to do it this year. Was getting better and had missed a few 50X plays I didn't stay on from emotions of previous loses. Had been getting better at the information and fundamentals but seen weak spots in all around dominating the market. I focused on the DD and sponged thousands of pages of info over the years always adjusting my methods. Came to a conclusion one day and changed my whole method in one month. Stop following and lead, stop being down on myself, stop chasing, stopped using candle charts and added another $1000 to account and in June 2019 began to make huge gains off new methods and get really serious of critiquing my style and charting. While all along hearing everyone tell me: I will lose it all, you can't trade for a living, you don't know what your doing, others lost thousands why bother, you don't have enough money, you'll never make it, get a real job etc..... all the comments you could imagine over the years. Lessons from what I call the trading phases of success.
10/10 method to success
10 phases every trader will have to overcome to be successful.
10 steps from 1k to 100k. You'll have to read the book to get it all.
In the end
Basically I got out of line and did my own way.
Today I make a ridiculous amount trading I care not to disclose and went from a $30hr job to a 6 figure yearly income. Most I have ever invested was $2800 and 4 years of my time hunting information and learning from mistakes. I put the time in to get the results, 10-12hrs daily to get here. Last months Penny stock millionaire made $4300 the week I made $12k. Any one of us could do it.
Still learning everyday, Still making adjustments, Still fighting inner demons, Still beating bashers with DD, Still helping others, Still staying honest.
Morals to the story:
Starting from the ground with nothing can be done.
Always set goals and dreams on the same path.
Lead don't follow.
Fear is a liar.
Pay it forward.
Good luck to everyone here and all those who trade, Everyday could be the biggest day of your life. That is why we love doing it.
