Why PENNY STOCKS are EXACTLY like OPTIONS TRADING- How I turned 0 into ,000 Swing Trading
Penny stocks aren’t the only way traders can make money fast in the stock market using small amounts of money and large volatile moves. Surprisingly to most, options trading provide the exact same opportunity. I discuss in this video very briefly on the topic and talk about how penny stocks are similar to options, and show an example of a recent play that I did YESTERDAY. I wrap it up by talking about the dangers of trading volatile assets, both penny stocks and options, and how you can’t let greed get the best of you.
As I said, I am fairly brief on the topic of how penny stocks are similar to options trading, as I don’t explain some of the clear negative differences on both ends and focus primarily on their volatility and ability to make large profits from small starting amounts. Given this is what a lot of people only focus on, I felt it had some relevance, however I am saying here that there is definitely a lot more to the picture on both sides, penny stocks and options trading, so please understand this is a very surface view. Further, as you can see from the video, I do make a plea for penny stocks traders to stop trading penny stocks and to come trade options. If you want more information on my reason about that, watch my other video on why options are better than penny stocks: https://www.youtube.com/watch?v=fJS4Iy1Ksjo
We have a full team and community of people willing to help you make the transition, an even if you still want to just trade penny stocks, we are hear to answer your questions!
The second part of the video I discuss the play I made, which was a simple swing trade I made at the beginning of the month. I bought both on the same day and sold on the same day and it was a 12 day period. I want to highlight this as this is a very important aspect as to why I prefer swing trading to day trading and using options over penny stocks. This was a cheap play, risk defined, high reward, and I had time to hold it and didn’t have to look at a chart from a second to second day to day basis. But if you guys have any more questions on this play, we will be going over it in the citizen webinar this weekend and I did discuss it in the past webinar recording in the citizen video library.
Finally, the last part of the video I highlight how all in all despite the volatility and fast money, assets like these are very risky and easy to lose money on. I showed how if I didn’t sell nearly perfectly and held simply a day longer or didn’t sell at close I would have made 60% less. This just goes to show how risky options trading is, but all volatile assets in general, which includes penny stocks. Given you can lose a lot of money very quickly with options, this is why I advise you all get a hang of trading first with fake money, before trading with real money. Do not try this at home lol
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