#
If you have been following my profile, you are probably familiar with my style of trading penny stocks, which involves scanning for stocks which have been beaten down and are about to move, fueled by company issued BS press releases, or trading momentum for one reason or another.
The proper risk management when trading these stocks is to diversify into about 5 stocks, which are seemingly uncorrelated. The issue is that when the general stock market risk is OFF, then the correlation increases among penny stocks and they become one of the least desirable assets, so those 5 stocks might be drawing down nearly equally as having a single stock. This fact, along with certain the trends which have emerged after the PDT removal are presenting us with unique opportunities in momentum penny stock trading.
Without spelling out the specifics, I will run an experiment/challenge where I use my new scanner each day for the most promising stocks, and pick up to 5 of them, but often 1 or 2, and aim to get in before the crowd and get out before they run for the exits, while rolling the capital and remaining fully invested.
This will be a similar but different experiment from my "Ten Doublings" challenge, where I aim to find only 2X stocks and not settle for less than 100% gains. In this challenge I will keep the duration short, and the aim will be to close the trades the same day or the next day. What used to happen over weeks and months with swing trading can now be compressed in day trading, thanks to the regulators who got rid of the PDT rule, AI automation, and people just being people when it comes to trading psychology.
Stay tuned for my trades, and ask any questions which you may have. Good luck if you choose to trade the same or similar trades, and keep in mind that these my trades only, for educational purposes, and that you need to do your own research and formulate your own trades.
Cheers!
PS: This is will likely be my last reddit challenge before I ride into the sunset. My health is not great and I have a family to care for, so this challenge contains "yolo" intentionally and appropriately.