Justin’s Strategy

Justin is a momentum day trader, but his focus is penny stock trading. Justin keeps his account at about $30,000, but half of the account is invested in CD’s so he can’t trade with that money. The rest of the account he uses to buy penny stocks, with his max position size typically being around 15,000 shares.

What Justin likes about penny stocks is that since they trade below $1.00 per share, they trade down to the 1/100th of a penny. That means on a dip trade with 10,000 shares he can take as little as 1/100th a penny of risk ($10). With the goal of making 2-3 cents per share ($200-300), he has an excellent risk-to-reward ratio. In 2024, Justin reported having just 7 red days. 

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