Why PENNY STOCKS are EXACTLY like OPTIONS TRADING- How I turned $300 into $3,000 Swing Trading



Penny stocks aren’t the only way traders can make money fast in the stock market using small amounts of money and large volatile moves. Surprisingly to most, options trading provide the exact same opportunity. I discuss in this video very briefly on the topic and talk about how penny stocks are similar to options, and show an example of a recent play that I did YESTERDAY. I wrap it up by talking about the dangers of trading volatile assets, both penny stocks and options, and how you can’t let greed get the best of you. As I said, I am fairly brief on the topic of how penny stocks are similar to options trading, as I don’t explain some of the clear negative differences on both ends and focus primarily on their volatility and ability to make large profits from small starting amounts. Given this is what a lot of people only focus on, I felt it had some relevance, however I am saying here that there is definitely a lot more to the picture on both sides, penny stocks and options trading, so please understand this is a very surface view. Further, as you can see from the video, I do make a plea for penny stocks traders to stop trading penny stocks and to come trade options. If you want more information on my reason about that, watch my other video on why options are better than penny stocks: https://www.youtube.com/watch?v=fJS4Iy1Ksjo We have a full team and community of people willing to help you make the transition, an even if you still want to just trade penny stocks, we are hear to answer your questions! The second part of the video I discuss the play I made, which was a simple swing trade I made at the beginning of the month. I bought both on the same day and sold on the same day and it was a 12 day period. I want to highlight this as this is a very important aspect as to why I prefer swing trading to day trading and using options over penny stocks. This was a cheap play, risk defined, high reward, and I had time to hold it and didn’t have to look at a chart from a second to second day to day basis. But if you guys have any more questions on this play, we will be going over it in the citizen webinar this weekend and I did discuss it in the past webinar recording in the citizen video library. Finally, the last part of the video I highlight how all in all despite the volatility and fast money, assets like these are very risky and easy to lose money on. I showed how if I didn’t sell nearly perfectly and held simply a day longer or didn’t sell at close I would have made 60% less. This just goes to show how risky options trading is, but all volatile assets in general, which includes penny stocks. Given you can lose a lot of money very quickly with options, this is why I advise you all get a hang of trading first with fake money, before trading with real money. Do not try this at home lol Let us know if you guys have any questions or video requests! Please SUBSCRIBE to the channel LIKE, SHARE, and COMMENT so I have questions to answers and things to talk about. If you think you can hang with the brothers and are qualified to be one of the 25 people we accept every quarter to join my 3-month mentoring program, where you are able to watch me trade stocks LIVE every second of the day, every day of the week and be able to ask me questions live while I trade, go to http://www.thetradingfraternity.com to request and application. The lazy an un-dedicated need not apply. NEXT PLEDGE CLASS STARTS JANUARY 2, 2017 Application deadlines: December 16th 2016: Deadline to submit application December 17th 2016: Group Interviews December 21th 2016: Acceptances January 2nd, 2017: Next pledge class begins If you have any questions about me or what we do, I have a 9,000 word FAQ here: http://www.thetradingfraternity.com/FAQ If you haven't done so follow me on social media! Twitter: http://www.twitter.com/JoshAnswers instagram: http://www.instagram.com/TheTradingFraternity Facebook: http://www.facebook.com/TradingFraternity Sign up to be a TTF Citizen and get access to our private LIVE webinars 2x a week, private newsletter, and REAL ESTATE chatroom!: http://www.TTFCitizen.com Apply for mentorship: http://www.TheTradingFraternity.com

Comments

  1. Penny stocks are not like options at all. Penny stocks do not expire, options do, options are far more volatile than penny stock. Penny stocks are bought in shares where options are bought in contracts where 1 contract is equal to 100 shares. Cmon
  2. What are options and where do you find a listing of them on the trading app?
  3. Sorry could not go away without commenting. Just following bunch of similar guys like you. How can you compare options with penny stocks which are basically STOCKS? It is same as saying here are apples and they are the same as these bananas. Like why? People now will not even get idea that nano and micro cap stocks can have options as well and volatility does differ not because instrument you use to get exposure makes them volatile but because underlying assets has fundamentally lower or higher volatility....So if and when trading penny stocks you can use options that means you can have certain downside risk because option is doing just that and by using options on these stocks due to fundamentally bigger volatility of smaller stocks options used to trade penny stocks will have bigger gains then trading GOOG and AMZN options. So volatility is just bigger in penny stocks fundamentally. So gains will differ not because you use options but because of volatility attributed to that stock segment. So make better idea about what you talk. Sorry no disrespect but this is a bit absurd... keep on going with better content.
  4. Hey interested in learning more about trading, what is the best way to get in touch ?
  5. check out the Pulse system for trading penny stocks. super profitable and minimal risk.
  6. wassup
  7. This channel is a joke
  8. Is it good to scale both in and out or just out for profit maximization? Thanks for recording the second half must've been a drag.
  9. Not all penny stocks are bad. #pennylivesmatter
  10. Are they huge or less amounts of risk?
  11. guess the good side in penny stocks is you actually own the stock.if prices drop you own an X amount of shares unless the company defaults and you lose your investment, the risk is higher on penny stocks but the reward is definitely worth it trading in high volume, but when it comes to options and your strategy doesn't work out,you literally lose that 2$-3$ per contract as premium..love your videos by the way..very informative.
  12. how did you get these options so cheap? Why for december 16 GOOGL puts i can only go to strike price 765 and you got to 710? nvm found out how holy shit now i can trade google and amazon
  13. Nadex binary options is taking over your content professor
  14. I was going to join Sykes program in a few weeks, would join now but the money stopped me from doing it; Ive been watching a few of your vids the past couple of days and I'm convinced. How much money would you say I need to get started?
  15. Nice job, josh, don't forget to check out our vids-- I subscribed


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Visibility: 6544

Duration: 12m 32s

Rating: 185