Market crashes can create once-in-a-lifetime opportunities.
Stocks become incredibly cheap, with some trading at prices they haven't seen in over 20 years.
But traders need to be careful they don't fall into what I call the 'Trading Value
Trap Fallacy.'
While fundamental investors get sucked in by a stock with a cheap price-to-earnings (P/E) ratio, traders get sucked in by huge price drops.
They see a stock down 50% and think it can't possibly go any lower.
So, they scoop up shares…except there's one problem…
Where do you put the stop?
Unless you have a clear methodology, as I do with my panic dip buys, you'll end up picking some random spot, and that's not a recipe for success.
Instead, let me show you how to avoid the trading value trap and identify the BEST spots to make your stand.
This will help you make tighter trades on penny stocks and can even be applied to market swings.
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