It’s Hot Hot HOT in the Penny Stock Market
Penny Stock Millionaire,
You’ve probably heard by now that coronavirus stocks are the biggest movers in the market these days…
The COVID-19 pandemic is the common denominator behind recent stock market volatility. Yes, there are other factors, but it keeps coming back to the coronavirus.
My students and I have been crushing it. I’ll share with you what I think are the best coronavirus stocks right now. Plus, some tips on trading them. (Or learning from this hot sector if you’re new.)
For those of you who’ve been asking what it’s like to trade a hot sector…
THIS Is A Hot Sector
There are SO many coronavirus plays right now. I’m getting hundreds of emails and DMs. Some of the messages are from people saying, “So THIS is what a hot sector looks like…”
For them, the past few weeks have been a wake-up call.
It’s kinda crazy. With the recent market volatility, traders and investors all over the world are losing in a big way. Meanwhile, my students are reporting record profits.
Thing is, many newbies have never really seen a hot market. Yes, the overall market has been hot. But until these coronavirus stocks started spiking, a lot of you hadn’t seen a hot sector.
Markets like this separate the wheat from the chaff. It weeds out the fakes and frauds. It exposes the newbies leading newbies to the cliff’s edge.
I’m getting messages from people saying, “Wow, I used to think you were full of crap.” But now they see my top students taking advantage of this crazy market. And they finally want to know what to do.
My students are doing what they always do. More on that later, but keep in mind that it’s tough to keep up in a bull market. Why? When the overall market is surging, my students’ trades don’t necessarily look like anything special.
But when you get a world crisis, when you get a hot sector — that’s when we outperform.
For me, I’m just trying to keep up with all the plays. It’s been an amazing few weeks for me and my students.
But here’s the thing…
We’ve seen this before. If you’re brand new, then you won’t have seen it before — unless you’ve studied enough stock market history.
OMG! How Could You Do That?
Use this market to learn. Do your best. Don’t feel bad if you miss a trade or a play. If a play happens without you — it’s OK. If you make a mistake — it’s OK.
I’ll share a trade later on where I bought the same minute the company announced an offering. It was unlucky. I actually had messages from people saying, “OMG! How could you do that?” As if losses aren’t part of the game.
More on that later because how you trade is more important than whether you win or lose.
Especially when you realize…
The Road Is Long
You’ll have good trades and bad trades. Keep it all in perspective because the road is long.
Trading coronavirus is literally no different than trading Ebola back in 2014. It’s the exact same stocks. But we’ve seen other hot sectors in the past like cryptocurrency, weed stocks, and China stocks. Or shipping stocks, biotechs, and nanotech.
Twenty years ago it was Y2K stocks.
Whether you’ve seen it or not… you should be taking advantage of it. But if you’re not ready to trade, then buckle down and study.
Continue Your Journey One Step At a Time
The first step is witnessing this price action. Like I said, a lot of people are surprised. “Tim, I’ve never seen anything like this!”
But it’s the exact same patterns. You just have to wait for these hot sector markets. And you’re not necessarily gonna get it on your first hot sector market. That’s OK. If you’re not ready, sit back and watch.
Whether you trade or not — these plays are gonna move. And whether you’re long or short biased, these plays are gonna move.
It’s a waste if you don’t profit from it.
But when I say ‘profit’ it doesn’t necessarily mean money. That depends where you are in your journey. So if you’re new, it’s about building your knowledge account. The money will take care of itself later, once you’ve put in the time.
How to Trade Coronavirus Stocks
The most important thing you can do if you’re new to trading or struggling is to focus on the process. Focus on becoming consistent. Learn to cut losses quickly.
Remember, it’s a marathon and not a sprint. What can you do today so you can learn? What can you do this week, month, or year? That’s the kind of thinking it takes to eventually become a self-sufficient trader.
Even if you make no money whatsoever for a full year … try to learn the strategies that work best for you. And even if you have to sit out the hot coronavirus sector now, study every day. Watch these stocks. Watch for any stocks with coronavirus news and see how the market reacts.
To give you an example, take a look at this trade…
The Big Lesson from APT
I’ve written about Alpha Pro Tech (NYSE: APT) a few times recently. That’s because it’s a great example of the similarities between the Ebola and coronavirus spikes. But it also highlights the differences in the overall market.
Back in 2014 during the Ebola outbreak, APT went from roughly $3 to $12. Check it out…
APT chart: 10-year, daily candle, Ebola and coronavirus spiker — courtesy of StocksToTrade.com
That first spike in the graph is what happened in 2014. Now, during the COVID-19 outbreak, it ran from roughly $3 to $40. The recent spike was much bigger for two reasons…
First, we’ve been in this amazing bull market. Second, short sellers are getting crushed by short squeezes.
The main thing to understand is this phenomenon happens again and again with penny stocks. And it’s beautiful.
We’re seeing the exact same stocks as the Ebola outbreak. But there are some things you have to be aware of…
This is a highly volatile market. Because the market is reacting to the coronavirus scare, virus stocks are weaker when the overall market is stronger. In other words, the market moves inverse to virus stocks.
The Bottom Line
Remember, your battle is NOT against losses. It’s against a lack of discipline, laziness, stubbornness, and ignorance.
If you want the freedom trading can bring, you have to study and develop self-discipline.
So this weekend, use your time to study up so you can take advantage of this hot sector before you end up on the sidelines waiting for the next opportunity.
Editor, Penny Stock Millionaires