Trading carries this allure—the promise of fast profits, the freedom of being your own boss, and the thrill of outsmarting the market. While traders chase those dreams across assets like crypto, forex, and options, one high-octane arena has always cultivated a dedicated breed all its own: penny stocks.
Zak Westphal was one of those wide-eyed newbies drawn to tales of penny stock riches back in the day. Small accounts and low share prices motivated him with visions of quickly compounding modest savings into lasting wealth. But what he discovered in the trenches wasn't so easy or predictable.
In this wild west realm of penny stocks, Zak Westphal endured trial-by-fire moments that forever changed his perspective of markets. Early on, he immersed himself in the rapid-fire pace of this niche. Manic swings between euphoria and despair. Big wins and sudden, painful losses. Early lessons were earned through blood and sweat.
But Zak emerged battle-tested from those early skirmishes wiser and more challenging. And today, as CEO of StocksToTrade, he channels those lessons to steer a new generation of traders toward success.
In our talk today, Zak Westphal reflects on formative days trading penny stocks that shaped his leadership. He revisits harsh lessons that now guide traders using StocksToTrade, and he examines how his vision continues evolving to serve traders chasing all types of goals.
Zak, you started your trading journey with penny stocks. Can you tell us about that experience and what drew you to that particular market area?
Ans. My introduction to trading began in the wild world of penny stocks. At first, I was inspired by the stories of quick riches and massive overnight gains. The low price point seemed accessible for small-time retail traders like me, and I dove in headfirst, hungry to leave my job behind and land my big break in the markets.
However, things weren't as easy as I imagined. The volatility was intense—stock prices would fluctuate dramatically in mere minutes. Without a solid trading strategy or risk management plan, I often lost money. It was a trial by fire. Through painful errors and essential lessons, I developed a healthy respect for the markets. I learned how vital research, due diligence, and measured risk-taking are for any trader.
My early days frantically trading penny stocks shaped my entire philosophy and approach to the markets. The education was expensive, but it was the best I could get. I aim to pass those hard-won lessons, which ultimately inspired me to create StocksToTrade and equip the next generation of savvy, responsible traders.
Looking back, what are the key lessons that trading penny stocks really drilled into you?
Ans. The absolute biggest lesson was that discipline and risk management are essential for survival and success. Sure, penny stocks can deliver these home run jackpots that get your imagination racing. But I learned that gut-punching losses always match those wins if you aren't diligent. Setting stop losses, sticking to plans, and keeping emotions locked down isn't just good advice - it separates the winners and losers at the end of the day.
The other huge takeaway was just how crucial high-quality information and tools are in penny stocks. Access to live data, advanced charting, and scanners that expose opportunities can tip the playing field in your favor massively. It's one of the reasons I built StocksToTrade. I wanted to empower regular traders with the insight and resources that could have saved me a lot of time and energy early on. I wanted to help prevent the next generation and give retail guys a fighting chance with the pros' firepower.
How has your experience trading penny stocks influenced the development and direction of StocksToTrade?
Ans. My days trading penny stock absolutely shaped StocksToTrade at its core. I knew firsthand the uphill battles facing retail traders, especially when you venture into volatile areas like OTCs and pennies.
I envisioned StocksToTrade fixing those gaps—creating a trading platform that truly leveled the playing field for regular folks versus the Wall Street elite. I wanted to pack institutional-grade tools, comprehensive data feeds, and quality training into one accessible ecosystem. Features like our AI scanners, customizable charts, and news sentiment analysis directly answer the needs I ran into when I was trading more blindly.
But software alone wasn’t enough. I also knew just how valuable a supportive community can be. Having people around you who’ve been in the trenches, mentors who can guide you, peers to celebrate wins and dissect losses—that support network is invaluable. It accelerates growth exponentially. So we knew StocksToTrade had to facilitate that community and dialogue just as much as empower individuals.
What advice would you give to someone who is interested in exploring trading?
Ans. Immerse yourself—study indicators, order flow, and charting. Paper trade extensively to discover what works for you before risking actual money. There is no need to learn by losing when you can practice for free.
Do your due diligence, too—don't just ride on hype or opinions. There's too much noise out there. Stay skeptical. And never, ever play with more money than you can afford to lose. That's always rule number one, especially with volatile penny stocks.
Resist the urge to jump into the deep end. Learn to swim first in the shallow pool by paper trading. Get seasoned before chasing quick bucks. Then, you can start trading with real cash responsibly. The markets will always be there - don't rush in before you've put in the work to succeed. Patience pays off in the end.
What common misconceptions do people have about penny stock trading, and how can they avoid those pitfalls?
Ans. The biggest myth is that penny stocks represent a fast track to easy riches. Newbies underestimate the sheer work involved—the planning, the discipline, and the mental stamina. They think it's a get-rich-quick scheme rather than a challenging skill requiring significant time and dedication to master.
Another faulty belief is that profits boil down to sheer luck rather than strategy. However, consistent success comes from executing well-defined plans, implementing risk management protocols, and developing resilience. It's not at all random, as many assume.
Here's my advice to avoid getting ensnared by assumptions: Get obsessed with high-quality education from trustworthy sources. Learn from veterans who have traded profitably for years. Immerse yourself in that wisdom, create a rigorous trading plan, and build skills—that's what transforms results over time, not chasing hype about overnight millions.
How does StocksToTrade help traders navigate the challenges of the market, regardless of their trading style?
Ans. We designed StocksToTrade to be a versatile one-stop shop for traders across the board. The foundation is providing accurate, lightning-fast data feeds. Powerful, customizable charting is huge, too—you need to visualize what the market is doing with different indicators. Our scanner gives you laser focus to drill down on opportunities perfectly aligned with your strategy.
But data and tools alone aren't enough. That's why we built out this robust educational ecosystem around the software, too—actionable courses, different learning formats, and community dialogue. At the end of the day, we empower the trader to get to that next level. StocksToTrade just gives you the environment to make better decisions faster.
Explore Our Other Insightful Interview:
