Which way? Penny Stocks education

[themickey]

As per that Journal I started, I was Swing Trading VAS (lol) VAP, IOZ and BEAR post COVID. Prior to that Buy n Hold. I do all this at work on my Smartphone using Selfwealth online broker lol I've now progressed to using TradingView.
I'm one of that post COVID generation who thought how easy is this ... until it wasn't lol. BTD worked a treat back then, that was the only strategy I knew.
Now I'm learning more than Trading, hoping to switch to Small Caps.

There's nothing like a a decent bear market to make a trader try much harder.
Are you thinking small caps will improve your score over larger caps?
From January last year till now, XJO down 4%, S&P500 down 15%, Russell 2000 (small caps) down 21%, small caps only outperform toward the tail end of a bull market.
So the best strategy imo, is diversify, medium & large caps buy first, then as they get tired, switch to smaller caps.
In a bear mkt, small caps get hammered.

 

[themickey]

Now I'm learning more than Trading, hoping to switch to Small Caps.

Have you begun on a trading plan, a method?

 

[getthatintoya]

When our XJO was hitting 7500 mid 2021 I went Short the XJO twice and got it right (XJO peaking at 7600 August 2021). Looking back just beginner luck or intuition. Then March 2022 I caught it a few times Short. Now it's too hard for me.

I've been looking at moving to Stocks, there's an endless supply of Small Caps, but Shorting Stocks or trading Pennies seems a bit too advanced. Even the pros don't do it much.

Stick to the index trading you will have more chance of success there rather than stocks/pennies.

 

[themickey]

Stick to the index trading you will have more chance of success there rather than stocks/pennies.

The only problem with that, Darc is trading from work, he may wish to discontinue that as index is really mostly intraday, he may be wanting to swing trade from home.
But I agree, small cap is nasty shit and most likely send someone broke real quick.

 

[Darc]

There's nothing like a a decent bear market to make a trader try much harder.
Are you thinking small caps will improve your score over larger caps?
From January last year till now, XJO down 4%, S&P500 down 15%, Russell 2000 (small caps) down 21%, small caps only outperform toward the tail end of a bull market.
So the best strategy imo, is diversify, medium & large caps buy first, then as they get tired, switch to smaller caps.
In a bear mkt, small caps get hammered.

Thanks for that. The reason I thought Small Caps was the large number of them, the potential for movement both ways, starting with getting as good as possible at Long first. I also prefer the after hours research rather than watching a Chart obviously.

All those Gurus: Minervini, O'Neil, Kullamagi etc go Small Caps, obviously Long at the start of a Bull Market, then Shorting at the start of a Bear Market.

I'll have to think about your Sage advice about the Mid/Large Caps. Thanks for that

 

[Darc]

Have you begun on a trading plan, a method?

Yes, I've managed to nail down a T/A system from Daily charts down to 5 minute Charts. Seems to work in manual Backtesting, using a rules approach. Am trying to get the Funnymentals learnt and obviously keep improving everything else. Thanks

 

[getthatintoya]

The only problem with that, Darc is trading from work, he may wish to discontinue that as index is really mostly intraday, he may be wanting to swing trade from home.
But I agree, small cap is nasty shit and most likely send someone broke real quick.

On the contrary I think our index is great for swing trading and can be traded from just looking at it at the close. Become a master of 1 instrument rather than a jack of all.
I think if he is looking at markets at work following multiple stocks would be more difficult than one index trade. Just my thoughts anyway

 

[getthatintoya]

on my Smartphone using Selfwealth online broker

Now I'm learning more than Trading, hoping to switch to Small Caps.

Check out Stake much cheaper brokerage than Selfwealth

 

[themickey]

As per that Journal I started,

Haven't seen it yet, will take a peek....

 

[Darc]

On the contrary I think our index is great for swing trading and can be traded from just looking at it at the close. Become a master of 1 instrument rather than a jack of all.
I think if he is looking at markets at work following multiple stocks would be more difficult than one index trade. Just my thoughts anyway

Thanks. You think just the Daily chart is enough for Indexes? That would be ideal, with an ATR trailing Stop or something?