Okay, today we're gonna be talking about liabilities and assets and how that can help you trade these stocks. Now what's great about this is this applies to both penny stocks as well as those quote unquote low-priced real stocks that we like to swing trade. So welcome everyone! I'm Lee Training with Stock trade Tim Bowen Be sure to like share subscribe ring that Bell so that you'll get notified as soon as we drop a new video. We're doing tons of stuff here on the channel long form short form live ring that Bell And Subscribe and share with your friends.

All right, we're going to talk about assets and liabilities. Okay, and this is something that actually frequently shocks me because so many people love to trade the low price stocks. I'm you know that's that's what I love to trade. That's what I Teach this trade I Think anybody with a small account or even an intermediate account really, you got to trade.

Well, you don't have to. But I Highly recommend you trade the low price stocks because they're the ones that move 20, 50, 200 and wait a 3000 percent Runner last week and and then four days before that, a fifteen percent hundred, Fifteen hundred percent. Runner Okay, doesn't mean you're gonna catch the whole meat of that move, but what's great is I mean you have a hundred shares and these things skip two, three, four, five dollars a share. You can really move the needle on that small account.

So let's talk about assets and liabilities and what often blows me away. Okay, remember all penny stocks are trash. We trade them. We we.

We love the hype. We trade the patterns. We recognize that they are emotionally driven and that's actually something that you should write down. Give me a, get a notepad out and write this down.

Remember when you're trading low price stocks, you aren't trading the company. You're trading the emotion behind the company. It's just four letters. three letters that represent human emotion.

Okay, and every single day there's a new stack. There's a new sector. But don't fall in love with these tickers. Don't fall in love with the story.

You recognize that those letters represent the the theme du jour or the theme do week. Is that French my French might not be quite that great, but um, drop me a comment below. Is it theme do week? Is that? is that proper? French Let me know in the comments below. but um, we also recognize that volume and chart patterns repeat.

Remember a Char A stock chart represents human emotion, especially in short-term trading. So we can recognize these. these the mo emotion that's behind the volume in the chart pattern. We can capitalize repeatedly, Like, over and over over and over again on these moves.

Now when we talk about assets and liabilities I Want you to understand a couple things When we're talking about low price stocks. Any penny stock, any small cap stock, you need to realize that almost all of them are going to have zero assets. zero You know, no products. No, uh, very little cash in the bank.

Okay, um, they probably won't own any real estate. They probably don't even have any patents. All they have is a big picture idea. Now that shouldn't you know? Keep you from Trading These things.

I See a lot of people that they'll look at the debt. They'll look at zero sales. I Mean especially in Biotech land, you look at a penny stock. Biotech 99.999 of them will never have any sales.

so people will skip these trades. but that you gotta get over that and recognize that the more speculative it is. You've seen that with bankrupt stocks. if you've ever, you know, if you've ever seen a bankrupt, uh, bankruptcy stock Hot run I mean Rep Rev was a great example.

Stock went wild about six months ago. it's delisted, Now it's gone. Okay. but if you avoided it because of the bankruptcy and the and all of their uh, liabilities and lack of assets, you missed an amazing trading opportunity.

There was one day I think it went from two to six in one day. Was an incredible trade that people avoided. now. Vice Versa When you talk about the mid price stocks, when I say that 6 to 10 to 12 to 15, that's that sweet spot that we look to swing trade some of these speculative stocks, You're actually going to look at the opposite.

You want to see stocks with actual sales with actual, you know, ideally more assets than liabilities. You can do that all in your stocks to trade. Under the key statistics tab, you can see how much debt they have. You can see how much cash they have on hand, You can see how much cash they have coming in all within a quick.

Glimpse Now that doesn't guarantee your swing trade will be successful, but it greatly heightens that swing trade potential because you recognize that other Traders are going to be looking at that. and if you get a one percent gap down a two percent gap down, everyone's not going to hit the doors and panic. A lot of people wonder why do some five dollar stocks just absolutely Panic If they open red and other ones dip a little bit and hold, it's a lot of because of the fundamentals because when you're talking about a five dollar stock with all liabilities and no assets, everyone knows what they're trading. And as soon as they see red, they get the heck out.

And then people are like what happened here where this other five six dollar stock gapped down, held, went back green green. Now what can be very frustrating if you're swinging those, you get stopped out which happens. but then the stock goes green that week. Open red to Green we look for and then it Trends higher closes.

At the high of the day does a weak open red to green and it does that. Three four days in a row and you're like, well, why did I why did I stop out of this one and it continued higher even after those? Gap Downs versus that other five six dollar stock that gapped down and never bounced. A lot of that is based on the fundamentals: the fact that they have cash on hand. Okay, cash is great I mean cash keeps you operating.

the fact that they actually have sales. Obviously, if you're bringing in money, your odds of success are exponentially higher than if you have no money coming in and then the less liabilities you have, the less likely you are. you are going to have to dilute sell stock to cover your liabilities. So that's one thing I Want you to focus on is really just understand that We even though they might both be two dollars stocks or eight dollar stocks or six dollar stocks, there are different ways to trade them and different ways to approach them.

Penny stock. Biotechs day trades only never believe them. You're just trading the motion. You're just trading chart patterns.

some electric vehicle stock that actually is shipping some batteries here and there. They got a little cash on hand. Maybe they get a a a big name uh executive that comes over from General Motors or Ford completely different situation doesn't mean you break your stop. Okay, don't fall for that.

That's the classic thing people. I've seen people stock pulls back and then all of a sudden they're like but they got some GM Executive but they got cash. My point is, you always stick to the trade plan. Remember the trade plan overrules everything, but you can stay in a trade that gets close to your stop if you're looking at the fundamentals and believing the fundamentals.

So everyone thank you for watching the video on what a biggest thing I want you to do is now take action and check out Stocks To Trade Live I've got Stocks Trade Live linked below. What's awesome about this? We're doing five live webinars a day every single weekday 100 free and we do this so that you can join the webinar that works for you. Okay, maybe you work afternoons. Listen, we do an 8 A.M Webinar 11 A.M webinar.

You can jump in on either of those. Maybe you work 12-hour days and you can only catch the evening webinar. That's great because again, they're live interactive. We talk about the stocks that are in play that day if they're like, if the webinars during the trading day could be a live trading webinar if there's a good opportunity and it's a great way to really get in depth on all of these topics.

So we do so many of these so you can join the one that works for you. And best part, we do weekends as well. Um, I've been doing a Saturday webinar. uh my.

Rob Booker Matt Monaco I've been doing Sunday nights so you can get different approaches from different Traders at different different times of the day outside Market hours during the market hours. Check out Stock Story Live! We'd love to see on one of the webinars.