The Samurai vs. The Sniper: 3 Lessons For Penny Stock Traders
Today, I want to share a metaphor with you all.
It’s about two forms of warrior, with one crucial difference.
For hundreds of years, the samurai were the best warriors in the world.
They trained extensively, and their skill was virtually unmatched by any other fighters of their era.
So where did they go?
Well, the problem was that the samurai were very traditional.
They believed in working hard every day, but they also refused to adapt to modern warfare.
They didn’t like guns – they wanted to live and die by the sword instead.
But guess what happens when you bring a sword to a gunfight?
Basically, the samurai didn’t survive because they couldn’t evolve.
Now, let’s look at modern day snipers.
They’re just as dedicated as the samurai once were, but they’re much more flexible in how they operate.
True snipers practice for years and years before they’re hired out for combat operations.
They know their guns inside and out, and they know exactly what it takes to nail crazy shots from long distances.
And they never fire at random.
They wait for their shots, and they only take them when all the variables involved line up perfectly.
Obviously, I want you to be more like the sniper than the samurai.
Here’s how to do it:
Lesson #1 – You have to be able to adapt
One of my biggest problems with the “conventional wisdom” that says you should buy low and sell high is that you only have one chance to make money using that approach.
You have to buy when a stock is undervalued and sell it when you think it’s hit its peak.
So what happens if you can’t find any undervalued stocks?
What happens if the market shifts from bull to bear and – all of a sudden – nothing’s going up?
How are you supposed to make money “buying low and selling high” if nothing’s going high?
If you follow that advice, you’re like the samurai.
You’ve got all your eggs in one basket, except that in this case, that basket is a limited trading strategy instead of a sword.
But you can make money two different ways…
Both when stocks go up and when they go down.
We buy when stocks hit new earnings highs, when major contracts are signed, when billionaires are buying in and when we see pump and dumps happening.
We also know how to sell short, which lets us make money when these same stocks start to reverse in price.
No matter what kind of price action we see, we know how to make money.
That’s how you act the sniper.
A good sniper is just as deadly shooting from the top of a building as he is in the jungle.
The environment doesn’t matter; their skills work in any situation.
Lesson #2 – You have to be focused
Imagine that you’re a sniper.
Your target is 1,000 yards away – no more than a speck on the scope of your rifle.
What do you think is going through your mind as you get ready to pull the trigger?
Your breath. Your heart rate. Your five senses.
You’re focused on bringing everything into alignment to make that one, seemingly impossible shot.
Penny stock traders have to work the same way.
Every day, there are hundreds or thousands of opportunities to trade, but few of them – if any – are actually worthwhile.
Most of them are just noise that you have to learn to tune out to capitalize on the real opportunities that exist.
That kind of focus takes willpower.
So much of trading is a mental game. When you want to trade – when you’re anxious for it – you lose that focus. You go after setups that aren’t really all that great, just because you want that thrill of trading.
But when you trade like a sniper, you learn to hone in on the things that really matter.
You learn to focus on the price action and operate based on what it’s telling you – not on what you think might happen, or what Bloomberg tells you should happen.
That sounds easy, but it’s not.
Just like good snipers aren’t good right away, good traders need time to practice. They need time to learn how to focus.
It takes time, but all that time is is an investment in your financial future.
Learning it unlocks the secrets you need to succeed.
Lesson #3 – You can’t be afraid of the future
If the samurai were guilty of anything, it was living in the past.
They’d always done things by the sword, and they weren’t willing to let go of that, even though the world was clearly changing as guns got more and more popular.
It sounds crazy that they weren’t willing to adapt to that kind of huge change, but I see that same mindset in would-be traders every day.
While the market changes, my strategies remain the same.
Whether it’s a bull market or a bear market, there are always going to be penny stock companies and 99.9% of them are going to fail. It’s pretty much guaranteed. They’re terrible companies, but the patterns they follow are the same regardless of anything else that’s happening in the markets.
That’s why my strategies work in any market.
That’s why I stick to my patterns.
I know that pump and dumps are going to happen, and I know how to capitalize on them. That doesn’t change – regardless of what happens in the rest of the world.
What it all comes down to is that you can’t be afraid of the future.
You have to accept it and embrace it before you can flourish.
Part of that comes from knowing that the strategies you’re using are adaptable enough to work in any situation…
And part of it comes from learning how to focus enough to see the opportunities that are right in front of you – not the ones you wish were there.
But a big part of it also comes from learning to manage fear.
The thing is, the future’s going to happen whether you want it to or not.
You can run around worried about how you can cope, or you can take the steps now to prepare yourself to be flexible and to flow with the changes that happen.
Do you think snipers get afraid about the future scenarios they might face?
Or do you think they focus their energy on preparing to be effective in any possible situation instead?
Truly successful traders think like snipers.
They learn. They practice. And they prepare.
And then, when the future comes?
They aren’t scared. They’re ready.
You can be too.
Editor, Penny Stock Millionaires