When you start out as a new trader, for some reason, you’re drawn to the world of trading pennystocks. On surface, it makes sense why folks are more inclined to trade these securities.
After all, trading at $5 dollars or less, buying penny stocks offers you the ability to buy large quantities of a stock. New traders mistakenly believe it’s wiser to buy 10,000 shares of a stock that cost (.25 cents) than 100 shares of a stock that cost $25 dollars. This thinking, while it comes off wise to new (and some seasoned) traders is inherently flawed and a recipe for disaster. Traders who trade pennystocks should know a few things about pennystocks and I feel; I am the person to tell them.
I have said it before and I will say it again. Even if you don't follow the methodology of the 'true' legends; it is still wise to know how they view the markets. I haven spoken about some that have been very influential in my trading like, Livermore and Mr. Jones. In the spirit of continuing the list; here are 9 Warren Buffett quotes that resonates.
If you're still on the fence as to what this market is considered, guess no more. We are in a bull market! Week after week, we are making new, all-time highs and today wasn't an exception. I will tell you, what I've told myself, "don't fight the tape; making money is a lot easier in these types of markets".
With that said, I am about to share with you a strategy to trade during these types of markets. It is one of my all-time favorite techniques to deploy and a classic among traders.
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