Did you hear?
Elon Musk is in the news again.
Most people would agree — the man has style. Now no one knows what his exact plans are…besides “encouraging free speech”.
Regardless of what he has up his sleeves, the market responds to news like this…as expected.
Shares of Twitter Inc. (TWTR) already soared 12.2% in premarket trading today.
I’m not here to talk about the future of Twitter — we’ll find out soon enough. Let’s talk about something important here…
A vital reminder for penny stock traders like me and you
There’s a ton of buzz about this stuff. While hype like this will affect the price action — and open up opportunities…
You need to have a solid plan and not let FOMO get the best of you.
This applies to the entire market generally but this mindset is even more important when trading penny stocks.
They’re fast-moving, are very volatile, and can flip at any time.
Case in point…
On Tuesday, I talked about my VERU trade.
The stock gapped up roughly 150% from $6 to about $15. If I remember correctly, it peaked to 200% that day.
And volatility like this meant trading the stock itself was a risky move.
Inexperienced traders would jump on a massive move like this and probably get burnt.
I shared my game plan for this stock — bear call spread — and took action in my LIVE trading room…
My goal was to try and make $1,600 by Friday. Quick update — that turned out well for me.
The takeaway here is to not ignore your analysis and blindly follow the crowd.
Don’t jump on a trade just because;
- It’s trending on social media
- A Reddit or Discord crowd said it’s the next big thing?
- Or if you don’t have a solid plan
And most importantly, be READY to adapt to trends and market changes.