Advice for New Traders With Money

Sometimes we get new members with big investment accounts but they’ve never traded penny stocks.

Whether you’re starting with a small account or a big investment account, pay particular attention for the next few minutes…

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The Big Picture

I recently talked to someone who went off the rails. This guy was overtrading. He kept going in and out of the same stock. It was a mess.

But he admitted it. He owned it (and I respect that).

I bring it up because even though many of our members start with very little, we do have quite a few who start with a sizable account. Sometimes those who start with more struggle the most.

So, here’s my advice if you’re new to this niche and you have a big investment account or a ton of cash…

Put $1000 Into a Trading Account and Learn With That

Look, I’m giving you the same advice I’d give to anybody. But it’s easy to tell someone who only has $1000 to start small. Where else are they gonna start?

But if you have a bunch of money, it’s very easy to go off the rails and lose a lot.

I’ve had people join our highest level mentorship program who were wealthy. They had a boatload of money in their account, but they’d never traded these stocks before.

When it happens, I tell them the same thing. Open another account, throw a couple thousand bucks in there, and use that for learning. That way, if things go off the rails, you minimize the potential losses.

The Goal Isn’t To Make a Bunch of Money

Let me clarify because some people don’t want to hear this.

The goal isn’t to make a bunch of money today. Not today, not tomorrow, and probably not next week.

In the beginning, it’s about learning, comfort level, confidence, following the rules, and discipline.

I don’t care if you’ve got $100 or $100M. If you make 20% on 100 shares of a $1 stock because you followed a trade plan…

That’s a good trade.

My Take

No one has mastered this in a few weeks or a few months. Could you be the first one to do it? Maybe. But we play the odds.

So, whether you’re coming at this with a big investment account that someone else managed, or you’re starting with $1000 you saved $10 at a time…

Focus on good trades, solid execution, and building your process.

Watchlist

This has become somewhat of a one-dimensional market, and I don’t think that’s a bad thing. When I say one-dimensional, I’m talking about the 800 lb gorilla that is the AI sector.

Now, there are a lot of things holding the market down, from consumer sentiment to inflation and the price of oil.

But the 800 lb gorilla has the whole market strapped on his back and he just keeps carrying it…

A lot of people don’t like this because they hold a big basket of stocks, or they have a multi-layered approach to the market.

But what we do, almost exclusively, is day trade a small handful of stocks in the hottest sectors.

With that in mind, watch for news related to AI, chips, compute, power generation, and data centers.

For example, Advanced Micro Devices, Inc. (NASDAQ: AMD) was one of my Big 3 picks last week.

While AMD is more of a swing trade idea, look at this true penny stock in the AI sector…

Yesterday, a subsidiary of Volato Group, Inc. (AMEX: SOAR) announced it had signed an agreement to provide AMD GPU clusters at its Ohio-based AI infrastructure campus.

SOAR was holding VWAP going into the afternoon and was just below the Oracle signal. Watch for breaks above yesterday’s Oracle signal with a target at the major resistance level of $0.55 per share.

Now, true penny stocks are not my wheelhouse. But SOAR is a great example of a low-priced, volatile stock, with news that’s soaring because it’s in the right sector.

On My Radar

• Nvidia (NASDAQ: NVDA) increased its share buyback plan by $150B (more than the market cap of 84% of S&P 500 companies)
• SpaceX (NASDAQ: SPCX) deployed 26 v3 Starlink satellites during Starship’s first orbital flight
• Micron Technology, Inc. (NASDAQ: MU) reports earnings after the close tomorrow
• Get Jeff Z’s next calendar stock for $1