This week's lesson.
Today I want to talk about using the market to generate enough passive income if that’s the route you want to take.
Day-trading full time can come off as risky or too time-consuming to people that look at trading as being fully submerged in the market.
Typically, you see day-traders sticking to their computer from when the market opens until it closes, which means eight consecutive hours behind the screen. However, taking this approach can have negative effects on your emotions, and end up wasting time. When it comes to time, my strategies massively increase my winning percentage because I only spend roughly an hour trading.
Even if you’re looking at day-trading as a second income, you still need to study the fundamentals to be consistent in the market.
Knowing that a swing trade is your best position if you don't have time.
There are roughly ten or more runners that will hit 1000% and then drop, which presents this opportunity. To swing trade, you need a great entry, which can happen 1-2 months down the road. Stocks like this continue to fade, and when they have such a large percentage increase, you know many traders are stuck because penny stocks have meager fundamentals.
In addition to a swing trade, I have several patterns that can allow part-time day-traders to focus on where it counts.
Bounce shorts are one of those patterns, and they happen in the morning, anywhere between 9 am and 10:30 am. Once you find that entry point within the bounce short of a 1000% or more gainer, you can swing for at least 30 days to get that 80-90% gain. Keep in mind, picking the right broker will help lower your fees as much as possible so that you still have profit left over.