What does it mean to cut losses in the stock market and how do you know when to exit a penny stock trade? Subscribe here to get INSTANT alerts when I post a new video outlining my penny stock trading techniques: https://goo.gl/poGZTm
I live and die by rule number one, cut penny stock losses quickly. Some of my top students, like Tim Grittani, who has taken 1,500, turned it into nearly six million now, my most successful Millionaire Challenge student. Go apply to be my next Millionaire Challenge student below this video. I'm going to put a little link below there. Click it.
He's a little more aggressive. He doesn't always cut penny stock losses quickly. He prefers to cut his losses intelligently. I think many of you guys who are newbies, you're not intelligent. You wouldn't know how to cut losses intelligently if it hit you smack in the face.
For me, I like to exit trades when they start going against me because I have so much experience because I know these patterns inside and out. If a stock doesn't do what I think, I'm out, sometimes even for small gains.
If I'm buying a stock for a morning spike, let's say it's a crypto stock, and they just announced some new crypto company, and theoretically, they should be spiking right away because that's the hottest pattern right now. Guess what. If it doesn't spike or if it stops spiking, and it's already up 20%, and I'm buying it, I'm out. I don't care if I make five cents or lose five cents per share. I don't care if I make a hundred or lose 200.
For me, it's not just about the gain or the loss. It's about the pattern and the circumstance. And it's only because I know the patterns inside and out that I can do this. And that's why I always tell you, study hard, recognize all these patterns, learn from my now 5,000 plus video lessons. You can become an expert at these patterns just like I am and cut penny stock losses quickly.
And once you become an expert, you don't have to wait for a trade to become a loss to exit it. You can take small gains or medium-sized gains, and you'll know that you want to get out because the pattern is not working out.
For me, I want to give stocks as long as they can, but at the same time, if the stock is not doing what I want, I cut it, and this way I'm very controlled. I don't let a small mistake turn into a big disaster.
If you've seen my trader checklist guide, I'll post a link just below this video also. This is a guide where I talked about the site-sliding scale. Click here for my stock market trader checklist guide: http://traderchecklist.com/.
You have to understand that the stock market is a little complex. Even if a pattern has been working five times in a row, maybe the pattern won't work the sixth time, and you'll have to accept that.
No trade is guaranteed. You can lose money on any single trade. And you have to be willing to cut penny stock losses. You have to be willing to exit. You have to be willing to adapt to the market. The market is always right.
And if you want to ignore me, that's fine. If you want to fight me, if you want to fight the market, guess what. The market will teach you. The market will humble you and bring your ego and your account down to size.
Leave a comment underneath this video saying you want to be aggressive or conservative. You have two choices, and there doesn't have to be one answer. You can say sometimes I'll be aggressive; sometimes I'll be conservative. Maybe all the time you'll be conservative.
Maybe you're risky, and you want to take chances, and you want to ignore my rules, and you want to say, "Hey, I'm gonna be aggressive all the time." You get to choose. You're in control. Let me know what you want to do to cut penny stock losses.
Hey, Tim Sykes, millionaire mentor, and trader thank you for watching my videos. I hope that they help you. I want to share everything that I've learned over the years. You can check out more videos right over there. And also click subscribe so that you can watch all of these videos, get that knowledge, and become my next millionaire student.