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

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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!

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Comments

Max Ryder says:

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.

Camer0n97 says:

Not all penny stocks are bad. #pennylivesmatter

GeeOH says:

Are they huge or less amounts of risk?

johannes frings says:

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.

CUZC0M says:

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

Jacob Pickle says:

Nadex binary options is taking over your content professor

HoopHard33 says:

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?

BozoBros4 says:

Nice job, josh, don't forget to check out our vids– I subscribed

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