Today, we're gon na be having the 10 minute chat. Every trader needs to have. All right. One of the things with trading is that I often talk about is don't over-complicate things.

And you know a lot of these five things. I want to talk about a lot of people deal with. And that's why I wanted to break out this video and do it.. So, let's get right into it.

Right off the bat is don't revenge. Trade. And what that means is you got ta understand that you know have a process many times. I talk about this.

Checking those boxes having that methodology. And what you have to understand is that sometimes things just don't work out. And now that doesn't mean it's a bad trade.. As long as you stuck to your plan stuck to your stop, it's not a bad trade okay., But what many traders do is they take it personally.

And ultimately because they took that loser? Maybe news came out. Listen. Maybe something macro happened in the world.. You know we're dealing right now with potential World War III type stuff in Russia and Ukraine, and maybe you're trading some oil stock and all of a sudden good news comes out of that situation and the stock pulls back.

Hard. Doesn't mean you didn't follow your process. Doesn't mean you did the wrong thing as long as you stop out recognize the price action. Price action, trumps everything., But what a lot of traders will do is they'll.

Take that loss, they'll get angry, they'll get upset and then you know say it's the morning. Say they take that loss at 9:30 in the morning. And they see that red number. Maybe it's 100 bucks, maybe it's 200.

Maybe it's 1,000 bucks, whatever that red number is. And now they start going into mediocre setups because they want to get back to break even or want to get green on the day.. Now, listen when I say revenge trading, that's when you start breaking the process. Breaking the rules and going into again those mediocre setups that don't check all those boxes., There's a difference between following the process and say it's 2:00 PM., Maybe that same stock., Maybe that same stock.

You got stopped out in the morning now we have more news related to oil and gas. Now that stock's back near the high of the day, it's back above VWAP and it's perking in the afternoon., That's not a revenge! Trade., If you start chasing crypto stocks or electric vehicle stocks or some crappy pump and dump, you saw on Twitter with limited or no due diligence. That's revenge trading, okay. Next thing I wan na talk about is taking profits and not being greedy okay.

Back to a lot of the stocks that you are trading. Listen if you are new and you're on this channel, you're, probably looking for guidance in some of the most volatile biggest movers of the day. Penny stocks. Okay..

The reason we love penny stocks, especially for small accounts and newer traders - is, I mean, listen. I got Tesla on screen right now. You know Tesla this week, amazing bounce back above 1000., Ridiculous move, but it took five days to move 20 %. I mean listen, there's trading, opportunities., Look at that dip or VWAP hold back there on Tuesday.

Right there beautiful. Anyway. There are, but at the end of the day, high price and a 20 % move in five days. Penny stocks, you can get 20 % moves in minutes..

You can get 200 % moves in minutes okay.. But the point is these stocks pull back quickly.? You know people sell into the rips as they say, which is smart.. So when you're trading these penny stocks - and you see that 20 30 40 50 60 100 % gain in a matter of minutes, take your profits and be willing to re-enter.. Okay.

Now, if you're under the PDT re-entering the same day, not really feasible okay., But if you've got a cash account or maybe you're over the PDT, you've got more flexibility. So see green. Take green is what I call it. And the sketchier the stock.

Okay, the sketchier. The stock, the bigger the potential for the moves, but the more see green take green is true okay.. Next one is so huge, and I know many of you may have been struggling with this.. We all have at one point., Never ever ever, add to a losing trade okay..

Another saying I have I've actually got an ebook coming out with a lot of these. I've got a bunch of little catchphrases that I like that. I think that can help new traders. And you know one I think I invented.

Hopefully I didn't take this from somebody, but that losers add to losers. Winners add to winners. Okay. So whenever I use this trade, I always think of that Michael Phelps meme from back.

I mean jeeze, I mean six seven years eight years ago, probably., But there's that meme, where Michael Phelps, you know they're in the pool and he's locked on he's looking straight ahead and the guy in second place is looking at him okay.. So Michael Phelps is focused on the goal: okay, he's focused on winning. Losers are focused on winners, okay. And that being said, losers aren't focusing on themselves and their own trades they're looking at other people..

So when you start adding to that loser you're a loser.. I'm sorry I hate to be mean okay., But especially again in penny stocks.. So many of these stocks never bounce, never come back. And if you're, adding to a losing trade you're breaking the plan and you're just asking for terrible things to happen.

Winners, add to winners. Okay., So you take that penny stock that broke two and it runs to 2.25 and you add. That's different you're up 25 cents, a share.. Maybe it runs to 2.50, you add.

You're, adding to a winner.. Okay, yes, you're, raising your cost basis up, but you're scaling in and you're, adding to a winner.. Then it rips to three and you sell okay.. You had two adds.

Well, you actually had your initial buy at two. You had an add at 2.25. You had an add at 2.50 now you're fully sized in maybe it's 3000 shares. You're doing 1000 blocks at a time..

Then you sell that 3000 into that three rip.. Okay, that's what winners do.! What losers do is they buy some stock that spikes pulls back hard? They bought the top, then they add to the pole. Then it goes red on the day. They add there., Then they're, nothing but despair.

It gaps down the next day, they're adding there.. Then it goes sideways and gaps down the next day and they stop out. And all those adds did. Okay, all adding that size was is magnify your gains.

It didn't do anything. Didn't do anything except make the trade worse. Losers, add to losers. Winners, add to winners.

Okay. Next thing is trade patterns that are working okay., Like you're in stocks to trade, advisory. You've got access to the ebook., You can click below check out the stocks to trade advisory. I'm still live every morning, 8:30 eastern.

And you get again. You get access to the book., We talk about patterns a lot, but some patterns kind of come and go okay.. I remember back in January, I'm recording in March.. You know January afternoons were dead..

Well, almost the whole day was dead back then, but particularly afternoons.. You know if you've been on the channel. You know you've watched a million videos on the VWAP hold high a day pattern. It was not out there.

And listen. It takes some time to recognize that.. Maybe it takes a couple days. You get stopped, you get stopped., But recognize.

Okay. This is a setup. That's worked in the past, but it's not working now and I'm gon na wait for confirmation for it to come. Back.

Right now, you know again. Tesla two days ago was a beautiful one.. We had a bunch of them earlier in the week., A lot of these oil and gas stocks and these EV stocks okay. We had MULN, is a great example of that.

Huge afternoon moves okay., So you dial back focus on other patterns that are working. Now. How do you know that You track your data? You pay attention okay.. If you've got data, one of the things you should be doing in your spreadsheet or whatever you're using is what is the pattern? You were trading, Okay and if you've got stopped, stopped stopped on this particular pattern.

Well, hey! Maybe we got ta wait until we start seeing that pattern appear again.. Maybe you don't trade it you just wait for confirmation.. Okay, it's like wait! Hey! Yesterday there was one. Oh today, there's one tomorrow, maybe that's the day to get aggressive on that.

So track your data. And you'll know what's working. You might be like how do I know You do that due diligence, you spend that time. You'll know: what's working., If you don't write stuff down, if you don't journal, if you don't track data, you won't know okay.

And the last one, and I got ta go fast because this is supposed to be 10 minutes.. That being said, cut losses quickly, okay. And I know you're, like oh Tim, you're finishing with this one, But I have to always finish with this, because it is truly the most important rule in penny stocks, okay. Patterns, recognizing flow rotation, interpreting the news recognizing hot sectors, Understanding where shorts are stuck, these are all valuable, things., There's a well, not a million there's a lot of stuff.

You need to know, and hopefully, on this channel, I help you with that., But none of that matters again. Penny stocks huge movers., None of that matters. If you keep breaking your stop and keep bagging. Because you can recognize patterns, you can recognize volume.

You can recognize news. You can recognize all this stuff.. You can know where the chat pumps are. You can know what the twitter pumpers are doing.

You can know what the short sellers are doing, but when that stock reverses - and you don't stop out - none of that matters. So cut your losses, quickly. All right. Everyone have an amazing day.

Hopefully I didn't lecture. You too much. Drop me a comment below a little bit of a different video.. Let me know: did you like this video And would love to see you on stocks to trade advisory?.