Hey traders, it’s Matt here,
Bryce shared our #1 watch for Monday in yesterday’s blog post.
I’m here for damage control.
There are real profits to make in this market. 2024 is a historic year thus far. And any trader that hasn’t profited still has a chance to make some green.
But the stock market is not without its risks.
It’s possible for traders to lose money if they don’t understand this ecosystem. Even on the biggest stock spikes.
Today I need to share some information with you that could mean the difference between profits and losses this coming week.
90% of traders lose. Usually, it’s because they just don’t understand the market.
Don’t make the same common mistakes.
Common Traps
I’m just gonna go right down the list.
Some of this might be familiar to you. Some of it could be completely new.
It’s ALL important.
#1: Margin V.S. Cash
We’re trading these volatile runners.
Usually day trading. That means we buy shares and sell them within the same day.
If you sign up for a brokerage account, it will ask you whether you want a margin or a cash account.
Margin accounts: You can only make 3-day trades per week if your account is less than $25,000 in value. It’s called the PDT rule.
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Cash accounts: Day trade as much as you’d like.
There are other differences between a cash and a margin account, but for our purposes, the PDT rule is the main issue.
#2: Market V.S. Limit
A market order means the market maker (the person who connects buy and sell orders) can place your price wherever they’d like.
Since we’re trading volatile runners, we need to be sure we’re getting the right price per share.
A limit order allows us to do that.
A limit buy order states: I want to buy shares but only if they cost this much or less.
A limit sell order states: I want to sell shares but only if they’re selling for this much or higher.
If you use market orders, your positions are at the mercy of market makers.
#3: OTC V.S. Listed
OTC stocks have a commission fee when we trade them. It’s usually around $5.
$5 to get in, $5 to get out, $10 total.
To trade stocks without a commission fee, focus on tickers trading on the NASDAQ or the NYSE. These are listed stocks and are traded more freely.
#4: Cut Your Losses Quickly
You’ve got a cash account. Which means you can trade as many times as you’d like in a week.
Don’t abuse that power. But don’t be afraid to cut your trade if it fails. You can always get back in later.
Our profits outshine our losses if we can control our positions with discipline.
The trade patterns that we use have clear buy and sell levels. If we follow the rules, our overall account will stay safe.
>> This Is The Framework We Use To Trade <<
If you want to see it happen in real time: Join the next live stream.
We’re tracking the hottest plays all week.
Cheers,
Matt Monaco