This is What I’ve Learnt from My first Penny Stock Trade

$FORD was my first ever penny stock trade, and unfortunately it was a losing one! 🙁 Penny Stocks Suck and I quit already!!! Just kidding 🙂

Having my first trade as a losing one was actually the best way to start and here’s why!

First of all I believe that if you really want to do something and become consistently successful then you have got to be willing to take hits and learn from them, otherwise you will never ever improve PERIOD!

So my first trade was educational and I have changed for the better because of it.

I have no problem with making mistakes, as long as I can learn from them and gain something out of the trade then I’m happy.

I started using this charting and screening software in October 2015 and thought it would be good to put up my first ever penny stock trade example of $FORD.

So Where Did I Go Wrong?

To start with, why did I enter this trade? I entered this trade because I followed Tim’s Penny Stock Pick like a total dumb ass! I basically entered the trade just because Tim had, while what I should have done was researched the stock first and analysed the charts myself and then decided. Mistake number one!

Secondly I was not really ready to trade as I did not understand about dip buying, amount of shares, the float, price action, volume, and a whole lot of other stuff… basically I did not know ANYTHING! Mistake number two!

Thirdly $FORD was in the green for me at one point by about 15% and I should have taken profits there and then, but why didn’t I?! I was over ambitious with my first trade and “hoping” for a decent profit straight off the batt with my first attempt, and although I had an exit goal of $1.93 I was simply unaware and uneducated about price action which faded obviously. Take profits early and DON’T EVER HOPE when trading, you must know and be prepared what ever the market does and certainly don’t ever expect home runs! Mistake number three!

My exit goal was $1.93 which it did actually hit, but it happened in premarket hours the next morning while I was delivering parcels at my day job! I did not know you could buy/sell during premarket hours or after market hours, so another lesson learnt. I’ve now learnt that NOT all stocks can be traded pre/close market hours, it depends on your broker and the stock in particular.

Worst of all I had terrible wifi signal on my phone and I was trying to deliver parcels, as well as follow my trade all at the same time which is obviously doomed for disaster not being fully focused. On top of this, the broker I was using wouldn’t let me put in limit orders on my phone so I was only allowed to execute market orders!

To top things off as I was doing my best to follow this trade while delivering parcels, I was watching this stock slowly fall, and all I kept saying to myself was wait for it to go back up before you exit even though it went into the red! The biggest mistake of all I thankfully learnt right with my first trade!!!

… CUT LOSSES IMMEDIATELY NO MATTER WHAT… !!!

What I Learnt in Bullet Points…

1. Don’t take tips from anyone, unless you understand their theory AND you agree with it.
2. Educate yourself from the best, as well as understand the game first before doing ANY trades.
3. Take profits early, but you MUST understand charts as well as price action to know how to do this.
4. Don’t trade on the go unless you are able to be 100% fully focused on the trade.
5. Make sure you have decent internet connection with no distractions.
6. Make sure you choose a decent broker. I’m in the UK and the broker I used is terrible! Will change broker now!
7. Be prepared before you trade so that you are ahead of the game and NOT chasing it!
8. CUT LOSSES IMMEDIATELY NO MATTER WHAT!
9. CUT LOSSES IMMEDIATELY NO MATTER WHAT! 
10. CUT LOSSES IMMEDIATELY NO MATTER WHAT! 

So to top things off with my first penny stock trade, I am happy overall even though it was a losing one. Like I said, I am going to be 100% transparent with my trades no matter what happens. It’s taken me ages to get round to writing this post since my first trade here in August, and a lot has happened since. So stay tuned to see what’s happened in my next post… It’s all VERY exciting to say the least 🙂