Short Sale Restriction: Definition, Rules, Example + Tips

If short selling is part of your strategy, you must be familiar with short sale restrictions.
They can drastically affect your order executions and potential trading plans.
But even if you don’t short sell, learning about the strategy and the rules affecting short sellers could possibly give you an edge in your trading.

There may be potential to take advantage of these restrictions on the long side…
It’s all about preparation and having a well-rounded trading education.
What is a short sale circuit breaker? I’ll answer that in this post. Plus, I’ll tell you how the short sale restrictions can affect your trading, and I’ll give you an example.
Let’s roll…
What Is a Short Sale Restriction? © Millionaire Media, LLC Before you learn what a short sale restriction is, you must understand short selling. It’s a strategy traders use to profit when a stock’s price drops.
The trader borrows shares from their broker and sells them into the market at a high price. Then as the stock goes d..

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The Best Crypto Penny Stocks to Watch Now

With all the unknowns in the crypto space, it’s tough to know which crypto penny stocks have the most potential.
Especially with the seemingly negative news swirling around this week…
Bitcoin (BTC) is trading sideways and lacks volatility.
The SEC just delayed a ruling on a crypto ETF — for the second time. And the world bank just denied El Salvador’s request for help to put its recent decision of making bitcoin legal tender into action.
But that doesn’t mean big things aren’t setting up for the future…
That’s why I prepare in advance and build watchlists just like this one.
Two tickers on today’s watchlist are uplisting to the Nasdaq from the OTC markets. And I’m watching others for potential breakouts. Plus, a penny stock company just announced a new crypto trading platform.
And if a crypto ETF’s approved and more countries make bitcoin legal tender, it could mean big news for the entire sector…
So get to work. Prepare for all the potential opportunities by building your watc..

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Stock Buybacks: What They Are & What Traders Must Know

The market typically reacts positively to stock buybacks.
But are they really as great as some investors think?
Buybacks became a hot topic in 2020 when large companies received federal bailouts. Many critics called for companies that received funds to be banned from using the money for stock buybacks.

So if buybacks are so great for investors and companies, why do some people think they should be banned or even made illegal?
Like everything in trading, it’s not an exact science.
So let’s dig into the details. Then you can decide for yourself whether stock buybacks are good or bad…
In this post, I’ll explain why a company would buy back its own shares and what it means for traders. Plus, we’ll look at some advantages and disadvantages of buybacks and their effect on the economy.
Let’s go!
What Are Stock Buybacks? © Millionaire Media, LLC A buyback is also known as a share repurchase. It happens when a company buys back its own shares from the public float. It reduces the numb..

Categorized as Stock

Top Stocks to Watch Today: Thursday, June 17

It’s encouraging to see so many top stocks to watch today.
Earlier in the week, I went two days without trading. I didn’t see anything truly great that matched my setups. But recently more big percent gainers are popping up. Watch them all.
You never know which stock will provide YOUR best trading opportunity.
Biotechs are the clear winners on today’s list, but stocks trending on Reddit are also spiking.
Prepare for any potential trades by keeping a watchlist of all the recent runners. You never know when they’ll provide a dip buy opportunity or breakout to new highs.

But trade safe and swing for singles.
The overall markets continue to trade sideways. They could go either way — so watch and react.
Here are the top 10 stocks to watch today…
10:16pm study check, retweet/favorite this if you’re still up studying, making your watchlist for tomorrow or if you used @StocksToTrade to make a trade or papertrade today…every new day is an opportunity to learn so study up, trade careful..

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New Million-Dollar Student Milestones + a Perspective Lesson Every Trader Needs

It’s fun to talk about making money. It’s not as much fun to talk about perspective.
But traders need to understand that this isn’t a get-rich-quick game. They must be willing to study and put in the work. They must understand that it takes time.
That’s why perspective is such an important topic.
As a trader for two decades and a teacher/mentor for over a decade, I’ve gained a pretty good perspective on the penny stock world.
I’ve seen plenty of successful traders and even more not-so-successful traders.
In all my years of trading and teaching, I’ve seen a lot. So I try to keep an open mind. I try to keep observing and learning so that I can make my lessons applicable to as many people as possible.
I do this because I want more millionaire students.* In fact, I have some new million-dollar milestones to announce today.*
I tell you stories like this to inspire you. But I don’t want you to think it’s easy…
Why Perspective Matters I love making announcements like this…
View this..

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Top Biotech Penny Stocks to Watch — June 16, 2021

Biotech penny stocks are rockin’ again this week.
Plus we have plenty of catalysts to drive the action — drug news, Reddit hype, and institutional investment in one of these companies…
And some tickers return to the watchlist from last week. I’m watching for some to continue their upward momentum. It may seem like the party’s over for others, but I’m watching those for potential dip buys into big panics.
Whether you like breakouts, dip buys, or gambling on Reddit hype (please don’t), there’s something for nearly everyone on this week’s watchlist.

But don’t just jump into any stock moving. Create a process for building your watchlists and trading plans. Then stay disciplined and ALWAYS cut losses quickly. Now, get to work!
Here are the top biotech penny stocks I’m watching this week and why.
10:42pm study check, retweet/favorite this if you’re up studying, making your watchlist or if you made a trade or papertrade on @StocksToTrade today! Every day you should remember to learn a..

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Millionaire Mentor Update: When to Optimize Your Process

There’s a lot more to trading than winning and losing. There are bad wins and good losses. But the only way to know the difference is through experience and preparation. And THAT means knowing when to optimize your process.
Last week OTCs heated up again. But it was a week where I took a lot of small singles. That said, I’ll never complain about making $7,230 in a week.* Especially since I donate 100% of my trading profits to charity.**
More important than the money, there are two very important lessons…
First, small gains add up. A lot of new traders see screenshots on social media and think trading is about how much you can make from one trade. It’s not. Consistency and risk management are MUCH more important than big wins.
Second, protecting gains is ALWAYS better than holding and hoping. Last week I sold into weak bounces, weak follow-up spikes, and weak breakouts. Over and over again I took small gains when a stock didn’t do what I thought it would do. I’m OK with that because..

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Top Reddit Penny Stocks to Watch Now

I have six Reddit penny stocks to watch this week. Plus, I list five more higher-priced stocks with a ton of mentions…
Traders in some chat rooms all claim they’ve done due diligence and that others should do the same.
But they haven’t done the real work. They haven’t read SEC filings that show insiders are selling. And they’re not studying the past and patterns that repeat.
All they’ve done is read a BS press release that anyone can find online.
Even worse — too many believe in these companies.
Hey, I’ve been there. I believed in a penny stock company once. And it cost me $500,000 of my own money. You can read the whole story in my no-cost book, “An American Hedge Fund.”
That was a tough lesson. It’s why I’ll never hold and hope with these stocks. And it’s why I started teaching others how to avoid falling victim to penny stock misinformation.
I teach my Trading Challenge students how to trade patterns and take advantage of the hype, volume, and volatility. But to never believ..

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Slippage: Definition, Example, Effects, and How to Avoid It

If you’ve been day trading for a while, you’ve probably run into slippage when filling an order. Depending on your trading style, it could even happen every day.
No one likes slippage because no one likes losing money. But if it happens, it’s usually not the end of the world. Studying certain indicators can potentially help you avoid certain stocks.
If you disregard these indicators and trade without a plan, you could end up with a terrible entry price.

This could make you second guess the trade and panic sell … We’ve all been there. It can also reduce your potential risk/reward, which is never good.
If you truly want to become a self-sufficient day trader, start focusing on the details. Don’t be stubborn … Put in the work now and stop taking trades that could expose you to slippage. Your future self will thank you.
Enough small talk. Let’s get down to brass tacks and I’ll show you why slippage is something you must be aware of…
What Is Slippage? © Millionaire Media, LLC I love ..

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Top Penny Stocks List Weekly Update: June 14, 2021

Penny stocks can move fast and be highly volatile. To be successful, you need to make a daily list of stocks to watch and potentially trade. Remember, trading is a battlefield. Be sure to come prepared every single day.
— Timothy Sykes (@timothysykes) June 14, 2021
Many new traders feel overwhelmed at first. How do you choose stocks for your watchlist? It all starts with looking for big percent gainers. Keep reading for more about how to create your own penny stock watchlist.

News Moving the Penny Stocks on This List June has been similar to May so far. It’s still slower than the single best market in decades. But with meme plays back in style and OTCs coming back, there are plenty of opportunities.
Crypto has cooled off a little. But bitcoin rallied over the weekend after another Elon Musk tweet. The Tesla CEO tweeted “When there’s confirmation of reasonable (~50%) clean energy usage by mi..

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