Today is the 18th January 2016 and it is Martin Luther King Jr’s birthday.
The “US” stock market is closed, as we give respect to Martin Luther King and rightfully so! He would have been 87 today, so lets not forget what he accomplished and how his passion to change the world of mankind for the better of everyone, regardless of race, colour or country still stands strong today. Civilisation has come a long way since the 1960’s, but boy does humanity need to stop fighting over one another for supreme supremacy!
Any way’s that’s a different topic for another blogger to write about, so lets get on with the show!
While it has been a statistically bad start to the year for the overall market as a whole, I have managed to pull off my FIRST EVER GREEN TRADE in a bear market and here’s how I did it:
First You Need To Know This Important Fact!
As the market is down roughly 10% on the year so far, many traders and people in general are starting to panic that we are heading into a bear market, and maybe we are and then again maybe we aren’t!!
The absolute truth is, it doesn’t matter at all what the stock market is doing as a whole! Smart traders have their own thesis and trade individual stocks, where as dumb uneducated traders follow the crowd!
The number one BIG key secret to trading successfully, is that no matter what the market is doing and no matter what the media or so called experts tell you, it really really really does not matter! You can make money regardless as to whether the stock market is going up or going down, as there are opportunities in the stock market every single day that it’s open to trade!
Every single company listed on the stock market goes up in price or down in price, based on the supply and demand of any given stock. Trading the stock market is about psychology of how people react to any given information based on a positive or negative possible outcome and/or sometimes manipulation!
It doesn’t matter to me what the market is doing at all. All I look for are solid break outs with pre market percentage gainers that fit my selective criteria, that I’v learnt all from Tim Sykes.
If you want to make money trading penny stocks then you have to think for yourself about what to trade and how to trade it, but first you need to learn how to do it, and the best way to success is to learn from those that have a proven track record, but you better make sure that they can prove it 110%! So now that you know that little truth, here’s how I made my first ever green trade on Friday 15th January 2016! 🙂
How I Made My First Green Trade
While I’ve been fine tuning and working on my trading set up, I’ve also been analysing what to look for when a stock does react, where and also when the best opportunity to get into a trade is.
I’ve witnessed several penny stocks spike this year all ready, and I could have made money on some of them if I’d have entered a trade. However, as I’m still in the fine tuning process I have needed to take a watching position to see how things go with my set up, so I can see how effective I can be.
Being prepared before the market open is vital to catching a stock before it spikes at the market open, otherwise you will end up being too late and miss the biggest part of the spike.
Of course you’re not always going to get it right and missing the action is going to happen some times, but you must be prepared to accept missing out at times and NOT go in with the chasing mentality, or you risk getting caught out in the decline phase!
I was fully prepared to trade on Friday morning and I had even done some virtual trades a few hours before, just to get my eye in with my trading strategy and get comfortable with pulling the trigger!
Just before market open there were several pre market percentage gainers with volume, but most of them were too high priced for me to consider with my small account or the float was not to my liking.
Two minutes before the market open, Tim Sykes mentioned $CDRB as a pre market mover, which was not on my list. So I quickly checked out the details of this stock before the market open, and everything fitted the morning spike criteria, that being of a small float, small cap and has a history of spiking.
I added $CDRB to my watch list in my brokerage account and it was near the top of my list already as a percentage gainer.
So all I had to do was put in my trade order ready and waiting to pull the trigger if there was any price action at the bell.
Low and behold as the bell rang there was immediate action and all I had to do was wait to see if the second candle closes above the morning open (First Candle) which it did. The momentum was there, the price action was there as well as the volume so I pulled the trigger.
I only put in 300 shares to trade with a target of 30 cents profit to exit on, as I’m learning that in order to grow your account, you must take small positions first to gain momentum and increase your account size one trade at a time. Once I’ve achieved consistent results with my small trades and increased the size of my account, then I will increase the share size order.
Don’t focus on the amount of money you want to make or setting goals to make “X” amount of money by a certain time, just take one trade at a time and go in with a specific plan on EVERY SINGLE TRADE you take.
I entered my market order at 09:32:29 and it should have been executed just below the $4 mark, but it didn’t get executed until almost a minute later! That’s how fast this stock was moving! Finally it said my order was filled and all I had to do was watch as the stock price rocketed from $4 to nearly $5 within a minute or so! My entry got filled at $4.14.
My profit target of 30 cents had been meat and some! So I quickly put in my order to sell 300 shares right away, and again I had to wait another minute or so for it to get filled! I really thought there was something wrong with my broker and was worried that my order wasn’t going to get filled until it came right back down again!
Finally my sell order was partially filled and then soon after the rest was also complete at $4.70! Mission accomplished! I finally achieved my first ever green trade for a 56 cents gain or $140 profit after commissions. One of the best feelings ever let me tell you! 🙂
What I’ve Learnt From My First Green Trade
- You MUST be prepared and ready to trade before the market open with your stock picks
- Trade small when starting out and go in with a plan ALWAYS
- ALWAYS have an exit target and be prepared to exit early if momentum or thesis changes
- It’s ok to make little adjustments to your trading set up as long as you can see that there is improvement to be done
So while noting down these 4 bullet points with what I’ve learnt, the main problem that hindered me was not having more than one screen to analyse the stock chart as well as the price increase through my brokerage account.
This stock spiked so fast that I was intensely ready to put in my sell order and lock in profits rather too soon! I would rather lock in profits too soon at this stage though as i am still only at the very beginning with my small account.
If I’d have held on for another 2 minutes I could have made at least another 50 cents or more profit on my position, but having said that there was a moment where the momentum was changing and the candle on my chart had I looked at it was telling me to sell any way!
I am just trading with a cheap lap top at the moment, so it is a bit limiting as to how much stuff I can do at once.
I will soon invest in a desktop computer and have 3 screens attached to it so I can watch the chart and the price action all at the same time 🙂
Oh yeah I forgot to mention that I did NOT use level 2 at all to make this trade. I simply used Ichimoku, KC and Heiken Ashi candles with a few tweaks to give me my entry and exit targets! I will reveal more once I have successfully traded more, but for now I am still in the tuning process.
So all thanks to Timothy Sykes for notifying me of $CDRB that I got my first green trade under way. I have learnt everything from Tim how to trade like this with a few tweaks, but without Tim I most likely would have missed this trade all together and gotten to the action a minute or two too late!
I Also Got Rated As the Student Of The Day!
What’s really cool from placing my first trade is that Tim also mentioned me in a follow up video just below as “The Student Of The Day” which he gives out to those that have learnt the most or improved the most.
It is a small step to have made $140, but it’s still more than what I made at my day job delivering parcels and boy is it a huge step in confidence and moral for me. I feel truly humbled and honoured to be called out by my mentor. So thank you Tim. This is just the beginning phase for me, but I will be one of your next millionaire students. If Tim Gritanni can do it and Mathew Owens too then so can I. 🙂
Having studied so much and gotten this far with lots still to learn I am ready to continue and fine tune my trading set up even more with one trade at a time.
So starting out tomorrow morning I will be prepared and ready to trade again, and waiting for any reaction to penny stocks that have the potential for morning spikes.
So my first green trade is a wrap and it’s now on to the next one…… Rinse and Repeat 🙂
Here’s the great video of Tim showing you what works……