6 Steps to Trade Creativity

Dear Penny Stock Millionaire,

With literally thousands of stocks available, where can you find better trading ideas?

This is a common question for day traders, whether they’re brand-new or long-established veterans, but my top students and I know EXACTLY how to find them.

If you’re trying to make your way as a trader, chances are that it’s a subject that is frequently on your mind. If you’re wondering how to find the right stocks, including what criteria to use and what technology to employ, you’re in the right place.

I’ll give you a detailed primer on trade ideas and how to find them, then supply you with my seven best tips on finding smarter trading ideas.

What Are Trade Ideas?

Trade ideas, simply put, are scenarios you play out in your mind before you execute them on the stock market. In other words, you’ve seen evidence that a particular stock will move in a particular direction, so you forecast not only how high or low it will go, but in what time frame.

Think of trading ideas as setups. In other words, you’ve seen them over and over again, so you can recognize them before they occur. Will you always be right? Of course not.

However, with experience, you’ll likely increase your likelihood of profiting.

Trade ideas evolve into complete stock market trading strategies. Over time, you become used to picking out the patterns that most often lead to profits, and that’s when your wealth can begin to grow faster.

Different Types of Trading Strategies

Day Trade Ideas

Day trading involves entering and exiting a position, whether you go long or short, during a single day. In other words, you enter the trade after the market opens and exit before it closes.

I’m a day trader.

So are many of my students.

I might hang on to shares in a stock for just a few minutes before taking small profits. On other occasions, I might hold them for a few hours or even overnight.

The important thing is to create rules for yourself. When will you buy into a position? When will you let an opportunity pass? What patterns do you trust most?

Forex Trade Ideas

Forex trading is often about spotting situations in which a trading pair (e.g. EURUSD) might crack support or break resistance. These are often the situations in which you stand to profit most.

I don’t trade Forex myself, but I know lots of people who do. They get ahead by paying close attention to how specific currency pairs behave over a long period of time.

It could be days or weeks.

They pay careful attention to how specific economies are faring all over the world so they can accurately predict how currency pairs will behave on the Forex market.

How to Come Up With Profitable Stock Trade Ideas

Every trade idea deserves your attention. You never know what will work for you and what won’t. I have lots of friends who trade stocks, and we all have different approaches even though our strategies can overlap.

Start with when you like to trade and in what conditions. What’s your risk tolerance level?

From there, move on to more specific trade ideas. Do you prefer technical or fundamental analysis? How in-tune are you with the latest news going on around the world?

Knowing these things about yourself will help you avoid potential pitfalls and become a better trader.

Tips to Help You Get Started With Trading Ideas

As a teacher, I don’t want to tell my students how they should trade. I want to offer them the information I’ve learned so that they can forge their own successful path.

It goes back to the idea of giving a man a fish versus teaching him how to fish. If I tell a student how to make a trade, they might gain success that one time.

However, if I teach them how to approach trading in a broader way, they are setting themselves up with the building blocks for a long, successful career. They’ll be able to generate their own trade ideas and spread their own wings.

Here are a few of the golden nuggets I share with my students on a regular basis.

1. Choose High-Volume Stocks

Volume is critical. If nobody is trading a given stock, you don’t want to trade it, either, especially when it comes to penny stocks. Low volume makes it infinitely more difficult to exit a trade when you want to.

View Momentum Indicators

Momentum describes how quickly a stock’s price moves. In other words, is it going up and down like crazy, or do you see more of a straight line.

Think of it this way: a flat line isn’t good for your heart or your bank account. You want lots of momentum so you can take advantage of small increases or decreases in a stock’s price.

2. Trade Ideas Charts

Charts are nothing more than reflections of price movement. You can see the movement graphically, which helps you make faster, more accurate decisions.

Trade based on ideas charts. In other words, what patterns have worked for you before?

3. Fundamental Analysis

Some people love fundamental analysis. Essentially, it’s all about reading financial documents and paying attention to the news.

A catalyst, as I mentioned before, can be helpful both before and after it actually occurs. Similarly, a balance sheet can tell you myriad information about a company’s health.

4. Set Up Price Alerts

I might live and breathe the stock market, but that doesn’t mean I don’t have other interests. I’m always traveling, seeing the world, meeting new people, and catching up with family and old friends.

Price alerts can help you take advantage of specific setups when you’re not tied to your computer.

5. Don’t Trust in Promoters

I say this almost daily — it’s that important. Promoters are interested in one thing only: Lining their pockets. They don’t care about yours.

The only time you should listen to promoters is when you’re hoping to short the stock and benefit from the inevitable price decrease. Otherwise, forget they exist.

6. Master Your Trading Skills

If you’re feeling overwhelmed by all this information, you’re not alone. It can take years to feel comfortable trading stocks, and even then, you won’t win every time.

One way to hasten the process of learning the stock market is to join an active trading community.

You can join social sites. Share your trades with others and read about other investors’ experiences. It can be highly illuminating.

If you’re brand new to trading, paper trading can help you get more comfortable. There are platforms that let you trade “on paper” before you graduate to the real thing.

When it comes to trading ideas and getting a bit creative — I’ve got a few more tricks up my sleeve.

I have seven concrete steps you can take that I want to share with you in tomorrow’s issue.

It’s time to spice up that portfolio.


Tim Sykes
Editor, Penny Stock Millionaires

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