All right, welcome back everyone! Uh, today we're gonna be talking about investing in Blue Chip stocks as well as investing in penny stocks. What? There are some rules for actually investing in Penny side. So that being said, everyone be sure to subscribe and ring the bell to be notified as soon as we watch or as soon as we drop a new video. Now this is part three.

So if you're not subscribed to the channel, maybe jump back to those previous videos or you can watch this one and then roll back to them. But that's why I want you to subscribe Because a lot of times we do these multi-part videos, we do live videos Etc I want you notified as soon as we drop one. So today we're going to be talking about both. Okay, investing in Blue Chip stocks as well as small cap stocks.

Now when I say investing, actually let me back up and give a little bit of framework. Okay, um, in short-term trading land and this is you know this isn't my philosophy. This is kind of. everyone in short-term trading we we talk about day trading.

Okay, day trading is in and out the same day. maybe. uh, overnight. Gapper as we call it.

Okay, so a lot of the times, like people think of overnighting a Momentum stock is like a swing. Well, it's not really a swing. Basically, what we do with those Gapper ideas is we're trading a, you know, a strong Momentum stock into the market. Close.

Like, right in the market. Close last five minutes. Ten minutes. Maybe the last minute to catch that follow-through momentum the next day.

Because and then at the end of the day, we're out the next morning. because these stocks that finish strong tend to Gap up. we sell into the Gap. Okay, it's basically a day trading strategy.

The main reason: I Teach that. The main reason people like it is especially if you're under the pattern day trader rule. It gives you a lot more flexibility, so you take that strong stock right into the market, close it gaps the next morning. you're only in the trade a few hours, especially especially when you subtract the time the Market's closed.

So you're getting those day trade like gains. You're getting those day trade like exits without using your your day trade. You know that's that. Uh, if you're under the PDT, if you've got a less than twenty five thousand dollar account, you can only make three same day round trips and a rolling five-day period.

But that to me is still a day trade. Okay, you're in the trade basically less than 24 hours. Okay, then when we talk about swing trade, that's those multi-day trades, multi-week trades that is. Uh, we're trading the Momentum.

We're trading the hype. We're trading the hot sector. But we're also setting our three to one risk to reward. And if our profit goal is hit, we move on.

Okay, that's one of the biggest things about the Swing Trade. Uh, methodology that I teach. We set our risk and we set our reward before entry using the stock chart. So if you want to get really in-depth on that because I know a lot of you struggle with entries and exits, especially overstaying.

click the link below. Check out stocks to trade Live Okay stock. Straight Live one hour webinars four times a day during the week. Okay, in the morning, midday, afternoon, as well as the evening.

A lot of them with me. A lot of them with Rob Booker A lot of them with Matt Monaco. And we do so many of these webinars. so you can pick the time of day that works for you and pick the you know the presenter that that connects with you.

Maybe my style is a little different. So you go get on a webinar with Rob Booker maybe. Uh, you like Matt Monaco's style better. You can jump on with him so it's great way.

Um, to really maximize your trading education. and 100 live. And on weekends too. by the way.

So what's when we swing trade, we don't overstay. Our goal is hit. We move on. Now, when we're talking investing, that could be multi-week monthly month.

Uh, multi-month multi-year Hey man, if you're Warren Buffett maybe it's multi-decade holds and you're using more of a trailing stop methodology there. where you're dot, you don't necessarily care if your goal is hit, you're going to set your trailing stop and you're going only going to exit the trade if it pulls back hard enough to stop you out for your profits. or if it's very early in the trade. maybe for that small loss.

So one of the reasons we love to invest in Blue Chip stocks is the stability. Okay, you don't see massive Gap Downs You don't see massive dilutions. Not that it can never happen. Okay, listen.

I Remember I remember when Steve Jobs died Okay, big gap down on Apple but within a few weeks it was already back. But I mean listen, when the founder especially a Founder like Steve Jobs passes away, that's a very unique that's a once once in a you know of apples around 100 100 years. they've been around since the early 70s, you know already. almost 50 years.

I Mean if they're around hundreds of years, that might be a one-time event where somebody like Steve Jobs running the company passes away. so much more stable. Um, they're safer during shaky times. I mean hey, we know it's shaky out there right now.

Inflation: The Ukraine situation. You know all this stuff going on in the world. A lot of bad news in the world. the larger cap blue chip stocks.

You know they. they don't react as quickly to that. Um, and when they do, they're quicker to recover. That's the nice thing.

You know. one of the things with penny stocks and I so often preach this: you have to stick to your stops because listen, some penny stocks never come back. Okay, like a lot of them. A lot of them run.

We love them. We day trade them. but if you overstay and you become a bag holder, a lot of them never bounce. Like never.

Okay, they'll Flatline for years, delist and go away and never bounce. where again. back to the Steve Jobs situation with Apple or or Amazon when they when they missed on earnings a few months ago. Sure, they gapped down, but they tend to grind back because the underlying business is so good.

Um, dividends hey Dividends are great. Um, never gonna really move the needle. but it is also nice. You know if you've something that I recommend is having a long-term Holdings account and a short-term holding account so that you don't necessarily micromanage those long-term Holdings And it's always nice to log in and say hey, hey, a couple percent dividend grows.

Your account builds over time. Always nice to see. no small cap. Well, I shouldn't say no.

Very very few small caps, uh, issue dividends. So the way we trade the Blue Chip stocks the real stocks. We use technical breakouts on the chart. It's tied to the business, tied to earnings.

The best time to enter any real company Any high priced High Market Cab company is around earnings you have four times a year to enter. That's why we love the earnings winner strategy. Again, check out stocks to trade live. We go over.

That's a great thing. During earnings season we go over the earnings plays live on these webinars. Um, and then just use that trailing stop idea now. Vice Versa We flip over to investing in small cap stocks.

Remember I said investing Okay, we talked about day trading. in the earlier videos, we talk about day trading basically every video on this channel. But you can actually blasphemy invest in lower price stocks. Now you have to do your due diligence and you have to find the small percentage that are cash flow positive that are actually shipping stocks or shipping products like have real sales.

Ideally you want to look for people that have a an industry track record. you know, maybe someone that came from an Amazon maybe someone that came from an Apple or something like that. Um, and you're gonna want to avoid the low floats. Okay, low float stocks.

As much as we love today, trade them. And when I say low float less than 20 million shares in in the float, the biggest reason we avoid those. They're heavily manipulated. Okay, they're pumped, they're dumped chat rooms Twitter Every pumper loves low float stocks because they can buy us a few hundred thousand shares, manipulate the stock, push them all over the place, and because of that, you're gonna get stopped out if you try and hold these long term.

Now if it's a higher float stock over 20 million, it's cash flow positive. Debt is low, does not have a history of dilution. Okay, you want to look for a history of dilution now. Most cash flow positive stocks won't have a history of delusion.

I Mean remember, stocks dilute. They sell stock because they have no other Cash flow. means they sell stock to raise money, to stay in business, to pay payroll to pay the rent. Etc So if you find those now, they're few and far between.

But they're great trading opportunities. I mean I Don't think of some of these. Um, battery plays some of these EV plays I mean I Remember, like a bldp, it's like six bucks went to like 42 bucks in the matter of months. Um, they were cash flow positive.

They had a lot. You know they were shipping products. Um, they're few and far between. But if you like doing the due diligence you like doing in the research, they can be found.

So that being said, everyone if you want to understand the difference between all of this stuff and really get in depth 100 Live 100 free four times a day during the week. Saturdays and Sundays Check out stocks to trade live we'd love to see on a webinar.