Click image to view video
Today I’m going to talk about how to use the market to generate passive income. A lot of people think going full time is a bit too risky. There are two ways you can use day-trading to generate income: you can trade every day or trade part time to generate passive income. Typically, people think that in day-trading we stay on the computer from 9:30 until the market closes at 4:00 p.m. Now, I’ve been trading for three years and that is not what I do. Here’s what I do: I wake up at around 9:15 and trade for about an hour then I’m off for the day. Trading for an hour or two everyday will increase your winning percentage and it isn’t as upsetting as it is staring at a computer screen for eight hours.
Strategies for Day-Trading
Let’s talk about strategies that allow you to get the most out the time you spend trading. This is a great option for people that already have a job that just want to find another way to generate income. I think if you really put time into it and really study the materials about how penny stocks work, you can generate the income you want within a year or two. Here’s how to do it.
What to Expect in Day-Trade
There are usually 10+ runners that are up a couple thousand percent then they will drop. This is a great opportunity to swing trade. Now, you might be thinking, ”How do you swing trade?” The key to swing trade is finding the right entry. The best time to swing trade is when the stock is fading. Usually a stock will fade for 7-10 days. However, it can fade longer, sometimes even for a month or two. When it goes up this much, it’s likely that a lot of people are stuck on that ticker. When this happens, stocks don’t generally come back at all. So, if you can catch this opportunity and find the right entry, you should be able to swing it for at least a month or two. And you won’t even have to wake up to trade, you can just ride it all the way down to where it came from. Penny stock fundamentals always come back to where they came from. For example, if it goes from $2.00 to $70.00, then it will come back to $2.00 again. That’s a massive range of profit if you can get a good entry.
Patterns to Pay Attention to
So, if you are looking for generally passive income, here are a couple of patterns that I would recommend looking for. There’s one bond short that only happens in the morning sometime between 9:00-10:30. To master that pattern you need to find the right entry. Then once you find that entry, you can swing it for at least 30 days and gain 80-90%.
My Broker Recommendations
One last thing I want to address is broker charges and fees. You have to be careful of which broker you pick because of the charges and fees. I think Trade Zero is a little bit too expensive especially when you are going to swing. Here are my recommendations: Cobra is pretty good for swing, but if you can get shorts on Interactive Broker or E-Trade, that’s be even better. For bond short and some specific strategies trading on Intraday then Trade Zero or Center Point would be the best. Other than that, for swings I recommend E-Trade or Interactive Broker. You should choose whatever you are most comfortable with. I’ve noticed that E-Trade, Cobra, and Interactive Broker fees are much cheaper. That’s all for now, for more helpful tips and tricks check out my YouTube channel, and click here to find out how I turned $27,000 into $3,000,000 before the age of 24.