The past two weeks have been hard for OTC traders. We have all seen the value of our holdings drop in the last two weeks unless you’re a short-seller like Tim Sykes. The shorts have been able to profit off the current bear market.
This is what happens when you invest. Markets go up. Markets go down. Anyone that follows the Insider Financial YouTube channel knows that I have preached over and over again to book profits along the way. I warned my subscribers to not get greedy or get caught up in the diamond hands/paper hands BS.
Congrats to all who listened and took some money off the table!!
However, what about the folks that didn’t? What are they to do?
Well, for starters, what’s done is done. Get over that woulda, coulda, shoulda BS. We have all been there and know there’s nothing that can be done now. No use crying over spilled milk.
First, don’t be afraid. I’ve been trading OTC stocks for almost 30 years and this is how OTC Markets act. Crashes of 50% or more are a regular occurrence. This crash seems deeper than the rest because most investors are crowded in the same trades – TSNPD, ENZC, OZSC, HCMC, ABML, ALPP, AABB, etc. Once one name started dropping, nervous longs rushed to sell where they could and it created a stampeding effect.
Second, trade small. Before, if you’re starting buy was $500, cut it in half now. Start with $250. You should always scale into a position anyways. Never go into a position with your full load. OTC stocks are extremely volatile and no one has a clue how the stock will swing. It is completely out of our control. The only thing we can control is our purchases with limit buys.
Also, never average in too close. For instance, if you bought at $.10, don’t buy more at $.09 or $.11. Let the market move. A 10% or 20% move in OTC is nothing. Wait for at least a move of 30% or more before adding if you’re looking to build a position.
Third, look for OTC stocks that have yet to run. This is what we do at Insider Financial. We scan through hundreds of OTC stocks each week looking for the best alerts for our subscribers.
We always alert our subscribers first before we publish for our regular readers. This is the value of having a subscription to Insider Financial, which you can sign up for here. We alert our subscribers with our best ideas before our regular readers.
We preach the key to trading OTC stocks is finding momentum BEFORE it happens and then be patient. Now, when we say that we find momentum BEFORE it happens, we are investors looking to position our subscribers BEFORE the move happens.
We got our subscribers in early on TSNPD, which you can read our first article here, and ALPP, which you can read about here. This is where the big money is made and why so many of our subscribers are sitting on gains of over 5166% in ALPP and over 12,862% in TSNPD.
Fourth, it’s best to own a portfolio of quality OTC stocks. For some that can be as many as 10 to 20 or more OTC stocks.
Fifth, cash is a position. There’s nothing wrong with staying in cash and doing nothing if you’re not comfortable. Listen to your gut!!
Sixth, look for top OTC stocks that are still showing relative strength. We are talking about OTC stocks that are holding up well despite the sell-off in the OTC Markets. These are OTC stocks that are bucking the overall downtrend.