To be successful in trading small-cap stocks today, you need to have decent control of three critical areas. By focusing most of your Microcap Millionaires research and picks, while also having a written plan for how you will use the three Ms of penny stock trading. Mental/psychological, money management, and technical/fundamental methods are the main areas to focus on when trading penny stocks. This article will introduce you to these factors and how they relate to trading with Matt Morris Micro Cap Stock Pick Advisory Reports.

Because stocks trade below the $10 price point tend to experience more volatility and large price swings than large caps, feelings of fear, greed, hope, and despair multiply as your investment sinks or crashes. shoot, according to the action of the buyers. vendors, penny promoters, market markers, etc. The main point I want to make about trading psychology is that first of all, a trader must accept the fact that every trade has an inherent risk of loss and failure. Accepting this risk and trading anyway is the real key to success. Especially when you are just starting out, opening a position for something as small as $1000 or $500 can cause big emotional swings. You need to be able to manage the risk from it (discussed in detail later), but you also need to be able to mentally accept that risk as part of your trading business and continue with it. This is due to the fact that the future is unknowable. At any time, other traders can buy or sell in the market and this action will either prove you right and pay you your profits, or prove you wrong and separate you from your hard earned money. He knows and accepts his risk and will be able to trade and invest while enjoying a proper night’s rest every night of the week. But to really gauge his risk, he’ll have to become a mini micro-cap millionaire (M4) money management expert.

Money management is the discipline of measuring and tracking how much you will allow yourself to risk during a single trade, during a single trading day, and how much you can lose in any given trading month. This really comes down to deciding in advance how much you can afford to lose (if the trade doesn’t work out). Then you’ll also want to measure what kind of commissions you’ll be paying and include that. This way, you can make specific decisions about how many shares to buy and how far you might allow those shares to move against you before you call. For properly capitalized professionals, this tends to be the 1-2% of your trading account that is risked on a single trade. This is even when trading multiple positions. Smaller traders who are sensitive to risk may risk 3-5% of their account totals on a single trade. However, new hobbyists with limited capital will often risk 10-20% of their accounts on a single trade. This is a very important decision because the less you risk, the longer you will survive before the inevitable losing streak hits. For example, when you risk 10% of your trading account, a series of 10 to 20 losses could wipe out your account or take a significant chunk of your capital. But with that being said, a trader could also be doubling his account every quarter when he makes big moves like that. Decide how much risk is right for you, make a plan, and stick to it. In this way, you give your trading methods a limited downside, while opening up the possibility of considerable upside.

The trading methods that exist these days are many. When it comes to trading penny stocks, there are several nuances you’ll want to consider when coming up with a turnkey micro-cap trading system. It has some classic technical analysis methods that apply very well to small-cap companies. Daily Japanese candlestick patterns are very useful. The pin bar, harami, engulfing tapping, morning star, hammer, dark cloud cover, and others are very helpful in determining trend reversal trades as well as continuation trades. Classic chart patterns can still be of some use with small stocks. Trends and trading ranges are easy to spot on old charts. More complicated methods like the Elliot Wave are often not as useful as they are in higher volume, liquid markets. The same is true of many studies of the Fibonacci numbers. Moving averages, channels, and momentum indicators like RSI, Stochastic, MACD, and ADX are some of the favorite tools of traders like Matt Morris. Now when fundamental factors are discussed, this is a whole different arena when it comes to penny stocks that will double. SEC reports seem to routinely contain vital information that is only overlooked in press releases, but if decoded they can provide several clues as to where a company’s stock value is headed. Earnings reports are great to see. If you’re trading small-cap stocks on the NASDAQ and Russell2000, you can spend time looking at specific sectors, but you can also check the index before buying or selling shares of a specific company. Pink Sheets and OTC, on the other hand, are a bit more difficult to analyze based on the overall performance of the markets. Often penny stocks simply follow the general market when there is no other news hitting the market. The methods are many and when you are just starting out, it can make your head spin. But with time and guidance from micro-cap millionaires, you’ll understand what specific technical and fundamental factors are best for trading penny stocks.

Trading business is a very large and complex industry. To the surprise of many beginners, there is much more to this business than one might imagine when first exposed to the trading world. With that being said, today we have been able to discuss and delve into some basic considerations about using the three Ms to successfully trade micro-cap millionaires. He learned about trading psychology, he learned about money management, and he learned how trading methods differ with small caps and what to do about it. Obviously, there is much more to learn and more to discover on your journey, trading penny stocks that will double.