There’s one glaring mistake traders make that causes them to lose.
I’ve seen it so many times in my webinars…
Traders get mad that a stock didn’t do what they thought.
But there’s no reason to be mad about a stock that failed — unless you’re in it.
And if you’re in a failing stock, you probably made this one crucial mistake…
It could be responsible for the majority of your losses.
So today I’m helping you cut out this mistake from your trading so you can start growing your account in the right direction.
The Biggest Reason Most Traders Lose
One of the biggest reasons that so many traders fail is they try to play guessing games.
They love stock picks and they drink the Kool-Aid when they see a news headline…
Then they jump in without a trading plan.
But if you want to be a professional trader, you can’t anticipate moves — you have to react.
That might sound confusing to you because you see me make plans in Pre-Market Prep, and the stock does exactly what I say to watch for…
But I didn’t guess or anticipate what was going to happen…
I simply made a trading plan for the stock. Then I only act if my entry signal is hit.
Then it’s a trade.
Every single one of the stock notes from my morning webinars tells you when to trade a stock.
You don’t just randomly buy some stock and hope it goes somewhere. You’re not trying to predict anything.
Your trades should be reactionary. Learn from this recent example…
On Wednesday I had traders in my afternoon webinar who were mad about my morning pick, Ensysce Biosciences, Inc. (NASDAQ: ENSC), that didn’t work out.
But the only reason anyone would have to be mad is if they anticipated the move.
They got in thinking the trade would work instead of waiting for the signal to enter.
But they should only be mad at themselves…
Because ENSC never hit the signal. There was no reason to be in the stock or trade it.
ENSC chart: 1-day, 5-minute candle — courtesy of StocksToTrade.com
That’s why every single stock, every single day, should have an entry that you can plan for.
ENSC is an absolute piece of trash biotech … In my webinar, I said, if it hits the signal, it’s a trade. If it doesn’t, let it die.
That’s the mindset you need to trade penny stocks.
You can’t afford to make the mistake of getting into a stock without a plan.
The plan helps us prepare in advance for a move, but we don’t enter unless the signal is hit.
How do you choose your entry signals?
- Use Oracle
- Look for key levels on the chart
- Tap into indicators like VWAP and Oracle support and resistance levels.
If it hits the signal we take a trade with a predefined stop. If it doesn’t hit the signal, we don’t trade it.
If you can wait for your entry signal to be hit, you won’t get caught in trades like ENSC that don’t go anywhere.
Better to not trade than lose money, right?
On the other hand, if a signal is hit and the stock fails and triggers your stop, you get out and wait to trade another day.
When you do get a winning trade, your account can grow when you follow the right risk-to-reward ratio.
I share my number one morning and afternoon trade ideas in my Daily Market Profit alerts.
You get a trade plan emailed to you every morning, and a live webinar every day at noon to go over my top afternoon trade idea.
I give you my full detailed trade plans including an entry signal, a stop, and a goal for the trade.
But you still need the discipline to follow the plan — whether I make it, or you make your own.
See how you can build your discipline here.
If you want my trade plans daily — join Daily Market Profits today and I’ll see you at noon!
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade