Forget About Penny Stocks and Mirror Trading … Take the Leap to Join Warrior Trading
Like many traders I heard a lot about penny stocks and wondered if that was the best way to grow a small account. It didn’t take long to realize that all those hot penny stock email lists and websites are scams. The majority of people trading penny stocks will lose their money. None of the strategies used by professional day traders can be reasonably applied to penny stocks.
Penny stocks don’t follow typical chart patterns or technical indicators since the price action is primarily driven by manipulation. Instead of trading penny stocks we focus on trading well know companies priced between $3.00 and $10.00. Day Trading and investing in small cap stocks allows day traders to produce big percentage winners without taking the risk of penny stock trading.
Once I realized penny stocks weren’t a good idea, I started to learn about mirror trading. The practice of “mirror trading”, attempting to follow the trades of another trader, is not a sustainable or profitable strategy. In it’s core, it is a flawed concept. You will never meet a trader who has made his or her a living by simply “mirroring” another trader.
Any trading service that claims you can successfully mirror them is misleading you. The problem is that you will always buy higher and sell lower because there is a delay between their alert and your entry. The margins for success in trading can be so tight that this lag time eats into profitability. Most alert services focus on feeding you alerts vs teaching your day trading strategies for independent trading.
The reason I know this isn’t a sustainable strategy is because Jeff and I both tried mirror trading as beginners. I lost over $30k following other traders. And guess what? As I lost 30k the leaders were posting winners. Where was the disconnect? Due to the delay in alert delivery your winners will be smaller and your losers will be bigger.