5 KEY Lessons to Day Trading Penny Stocks ( Low float stocks $SOLY $ELTK $GNCA $DMPI )


The past week we’ve seen many low float penny
stock runners such as $SOLY $ELTK $GNCA and $DMPI. There’s definitely
a lot of money to be made on the long side and the short side. These 200% 300% movers
are definitely some of my favorite and most lucrative set ups to trade. Today I will be sharing my 5 key takeaways
and rules to trading low float stocks, including a very important one on spotting market maker
manipulation, especially in penny stocks. After watching this you’ll be able to implement
some small tips and tricks when you are trading these penny stocks this week. And if you want to see more videos on trading
low float penny stocks, Make sure to smash that like button for me and subscribe! The first golden rule that is so simple, but
yet so many traders don’t think about is, low float day one movers with FRESH news,
are almost always a long on dips. When people in the chat room alerted everyone
that SOLY is moving on Tuesday with news of FDA approval. I immediately checked the float
and the daily chart. Beaten down daily chart stocks been selling off since $14 and the
stock was trading around $6 at the time of the news release. Beaten down charts with a lot of steady selling
has a lot of complacent shorts still in it, and charts like these, especially with IPO’s
like I’ve mentioned in my previous video, generally has less selling pressure overhead. SOLY was also a recent IPO from february,
a low float stock with 5 million shares float. And added with the positive news release of
FDA approval on day one move on Tuesday. The stock was set up to be a squeezer long. All
that little due diligence could have been done in less than 5 min by the way on Finviz
or google. So there’s no excuse not to do this. As for ELTK, the runner that started on Wednesday.
Yes it had news regarding their earnings report losing less money than before, but that’s
not the key here. The key on ELTK, was that it has a micro float of only 800,000. Thats
tiny. It doesn’t take much to move this stock. Even without the news micro floats
like ELTK is still almost always a long on dips for me. A lot of traders love to short anythings that’s
“up too much”. Yes the pop and fade strategy works a lot of times and has made short sellers
a lot of money… until these low float or micro float day one movers with fresh news
comes around. So this is my first rule that I always think of when trading low floats. The second key takeaway that can help maximize
your profit, is to consider buying overnight these strong day one movers. This is the set
up I’ve mentioned in my previous penny stock overnight strategy video. The key is to be
very selective with these stocks that you do decide to hold overnight. But make sure
the stock have all the factors favoring a gap up or day two morning spike. Let’s take a look at SOLY. first of all
beautiful daily chart like I’ve mentioned earlier. Was beaten down from $14 in the beginning
of may to $6 but closing strong on the day above previous resistance with above average
buying volume, very important factor. It also has positive FDA approval news. Recent IPO.
so all of that met my criteria for an overnight long with small size. I personally held a small ⅛ size from around
$13.20’s average with rest of my chat room. And i sold some into the premarket gap up
around $20 and the rest of the position on that morning spike into $27’s. This is the
exact same thing I did with LFIN, HMNY and many others in the overnight strategy video. I understand a lot of people are scared to
hold these sketchy penny stocks overnight. And I was the same way when I first started.
But i encourage you to try with paper trading. Personally I’ve found that these set ups
give me really good risk reward if I’m selective. And honestly there’s no better feeling than
waking up to see that your overnight position is up $10 dollars premarket. It just gives
me a mental buffer to trade well and stay very patient the rest of the day and a lot
of times I just walk away and go out after closing that overnight long position. So consider
paper trading and testing out this new overnight strategy and see if it’s for you. The third key takeaway, is to scan more specifically
for recent reverse split penny stocks. If you have done some quick research. Runners
near the end of the week like $GNCA and $DMPI were both reverse splits from earlier in May.
So if you can chart out and put out alerts on these stocks. You can be ahead of other
buyers whenever these companies release PR to pump their share prices up. I personally use paid services like Benzinga
pro and a chat room to help me alert and track reverse splits penny stocks. But I did release
a video last week on how you can find reverse split penny stocks for FREE. So check that
out if you haven’t already. Some subscribers messaged me and told me that
apparently there are people selling this “strategy” for $500 $700 in DVD’s… well, I hope there’s
more to learn in those DVD’s because I talk about reverse splits in my videos for free,
ok not really free… all it is costing you is to destroy that LIKE button if you haven’t
already. Seriously any likes or comments down below
from you really helps a lot with my YouTube algorithm. These videos take me a long time
to make and that’s all I ask from you guys I’d really appreciate it. And I will be
talking about market maker manipulation on these penny stocks and even more bonuses I
don’t see other channels talk about so make sure you stick around to the end. So like i’ve mentioned before, sketchy penny
stock companies reverse split their stocks to stay compliance with NASDAQ or NYSE, to
keep their prices above $1 and stay attractive to potential investors, and most importantly,
to reduce their shares float outstanding so the stock price can move easily when they
do “conveniently” drop a news release few days or few weeks after the reverse stock
split. Again not all the reverse split penny stocks
will run. But when they do, you will be prepared and be able to capitalize on that strategy.
$DMPI and $GNCA will definitely be on my watch for possible continuation next week. The fourth key takeaway for trading penny
stock runners, is to avoid trading breakouts and wait for a consolidation or a downtrend
break to enter. I’ve mentioned this in many of my previous videos. The risk reward when
you enter at break out is generally against you. Buying breakouts is the most commonly
taught strategy in most day trading chat rooms and DVD. And it’s the most predictable. Let’s look at ELTK here. Yes buying breakouts
worked here on day one, and second time here near noon. But third time here this is a critical
failure. Spiked for fifty cents and if a stock is breaking previous highs it should push
even higher right? Wrong, ELTK quickly slammed down for almost two dollars. And it’s the
same thing on day two and day three. This is also market maker trapping longs and taking
these buyers money by the way. I’ll come back to that in a second. But
what I’m trying to say is. Buying breakouts generally only work in the morning with significant
buying volume. What i prefer to do is to buy downtrend break from previous high. This provides
a much better risk reward in my opinion. When others longs are chasing these breakouts
from alerts in other chat rooms, I’m selling most of my long position from down here into
the push to these breakout buyers. Again, think for the other traders. You have to be
trading the traders like I mentioned in my day trading psychology video. The last key takeaway I have for you guys,
is to take the meat of the move and avoid the mid day grind all together. This will
get you out of trouble with the market maker manipulation. ELTK and SOLY were perfect examples of false
breakouts and breakdowns. Market makers on these small penny stocks love to play games
trapping shorts and trapping longs. SOLY on day one during the grind from 11am to 1pm
market hours were trapping shorts. They were keeping this stock in a small range between
low $12’s and high $13’s. And if a stock isn’t making new highs, thats
a sign for many shorts to pile in. And finally at 1:20. They cracked this stock from $13
to $11.50. From the technical analysis standpoint this looks like it’s the end of SOLY right?
So they pulled this down quickly only to slowly bring it back up and have this stock rip again
around 2:30pm and squeezing all the shorts they were trapping in earlier. This is the kind of manipulation that happens
in the small cap penny stock world. Especially when these stocks have such low floats its
really easy to manipulate. We saw the same with HUNT and BPTH. And they do the same to trap the longs as
well. ELTK on day two around 2pm in the afternoon. They squeezed the stock higher to 11.56 and
breaking above previous high of 11.30. This is a nasty move squeezing out the shorts and
trapping all the longs buying breakouts, again, this is why i don’t buy penny stock breakouts.
And soon after this trap they quickly killed it to below $9 and cracking it to $7. Nasty
manipulation. Keep in mind that ELTK only has a 800k float and its extremely easy to
move up or down. So to avoid being trapped on both sides, I
just take the meat of the move in the morning and avoid all these mid day grind all together.
I’ll either go trade other mid cap or large cap movers or just step away. Sometimes I’ll
come back in the last hour before close to enter overnight positions but staying away
mid day has kept me away from trouble like these. Also another tip I have for you is to consider
using higher time frames like 5 min charts or even 10 min charts. This allows me to be
more patient and gives me a bigger picture perspective and I can easily see that the
stock is grinding instead of tending to the upside or the downside. I really hope we get more continuation on
low floats like these next week. But the reality is that when more penny stock runners are
popping up left and right everyday, that’s when the overall small cap market momentum
dies and don’t give us a lot of follow through. Because the buying volume would be scattered
around 10 stocks instead of just focusing on 1 or 2. Remember to do your research when you see
that a runner popped up, check the float, daily chart and the news, and enter on dips. Then if the stock closes strong on the day,
consider taking a small position overnight Scan for reverse split stocks and chart out
a list of potential runners and do your homework outside market hours And if they run, you’d be prepared. Stay
patient and be careful if you choose to buy breakouts. Once you’ve made your money, take a break,
walk away to avoid the midday grind and any potential market maker manipulation. There
is no glory in slowly giving back your morning profits in the afternoon grind. Trust me,
i’ve done that and learned my lessons the hard way. If you’ve enjoyed this video make sure that
smash that like button for me and Let me know in the comments below if you’ve traded SOLY
ELTK and GNCA. I’d love to hear how you guys did. And if you have questions, the best
way to reach me is in the comments section below. I’m the humbled trader. Thank you guys for
watching as always. And i’ll see you next time

100 Replies to “5 KEY Lessons to Day Trading Penny Stocks ( Low float stocks $SOLY $ELTK $GNCA $DMPI )”

  1. Thank you for helping us out. When you enter at the break of counter trend line, what time frame do you typically use for drawing the counter trend line and see if price breaks and holds above it?

  2. Your videos are extremely helpful in my trading carreer ☺
    Are you a full time daytrader? And how much capital do you think one needs to go full time?

  3. I am sure you answered this question somewhere, but I would like to know how you find penny stocks to trade? how do you set up your screener.

  4. You are by far TOP 5 in the free content trading community. Cant wait for you to start your paid subscription website and chat. I'll be one of your first members. (just a little suggestion. When you start it. Try to keep it small. This way you can keep out much of the noise and naysayers)
    #teamhumbletrader

  5. You're doing a great job and offering great advice, one of the best on YouTube. What premarket screener do you use?

  6. Hi,

    Before i follow your show, may ask you questions

    What your experience,years in the market, are you investor or trader or educator, your risk tolerance,you work for?

    Hows your stats earnings loss vs wins , in earning percentage for 2019?

    Mwbahahaaa

  7. Thank you for the valuable informations. I dont mind you talking about same topic or strategy in differente videos if others tickers are involved , the more you go over it the more we learn

  8. Amazing video ! (and that comes from someone who trades for over 6months know and thought he learned most of the strategies out there)

  9. This is an amazing video because in 10 minutes you learn that others traders teach you in hours, i met great traders but they don't have skills to teach or express things in easy way. Congratulations!

  10. Great info. New Subscriber. I did that very thing this morning. I started the morning with Penny Stocks and shifted to large caps later in the day.

  11. Maybe this has been proposed before, but I figured I'd ask. Have you considered creating a Udemy course? It would take off like wildfire. You cut through all the fat and get to the meat of the subject.

  12. MT, you keep raising the bar with the quality of your videos! I can't imagine what it would be like to see you live trading. Keep grinding!!!

  13. Wow you are my superhero I love you so much and I've watched all your videos on this channel at least x2 Lol. But I have a question what is better? Cash account or margin account for cheap stocks like this and i was wondering if i can grow a small account with cash account because i cant start a margin account for personal reasons. And Thnx for your time ♥️

  14. Great stuff, you earned a new sub! Really enjoy the way you break down trader psychology 👌🏼 My channel is all about trading psychology and you speak the truth 100%. Keep up the great content!

  15. Hi millennial stock! What are your thoughts about Offerings, like when they almost give shares for free to shareholders? does it decrease the float as well right? because at that point more shares belong to shareholders and there are fewer shares left to be acquired by the public.

  16. Today NBY spiked over 900% in a day, its an opportunity to go over why it did , how strong the news was, and how did you trade it. And most important how you expect the stock to behave next couple days.Thanks

  17. I usually don't comment but…. you inspire me to educate and stay disciplined. I am really grateful for a great detailed trader knowledge on YouTube. Thank you! (づ。◕‿‿◕。)づ

  18. amaazing!!! you are indeed genuine in teaching the Beginners! all of your videos Make SEnse! your lessons have a price tag when it comes to other "gurus" selling dvds for this important information. Such a GREAT TREMENDOUS HELP!!! THANK YOU VERY MUCH!!

  19. Wow ok 3 weeks late found this in my suggestions …You just got a new sub …I will be catching up on your videos . Thanks for the great content. Destroyed the like button 🙂

  20. i really enjoy watching your videos, they are highly educative. just wondering if you are a full time trader?

  21. Another great video! You are amazing! The amount of information you share is truly refreshing. Also, I love when you imitate the gurus selling courses. LOL!

  22. thank you dear humbled trader( i wish i knew your name) for your videos very very useful i have watched like 10 of them already and i cant get enough of them shame i have to go to bed cause i gotta wake up early for work otherwise i would watch a few more please keep these videos coming thank you very much again.

  23. HI humbled trader,,, on you strategy you said, you risk 1/8 position ,,, is it the gross amount of risk or the trade amount willing to spend? how about your stop loss? since there is no STOP limit in PRe market? coz it could drop while off hours without STOP limit being activated.
    Thank you very much.

  24. Thank you for the amazingly helpful info that one cannot find anywhere else! Looking forward to your next video!

  25. very informative videos so well done but please… you have to change that like button noise… I'm wearing headphones and it was so loud i think I saw Jesus 🙂

  26. I am so glad I found you. It is like finding a stock just before it is about to rip up. You will get more views. Keep up the good work!

  27. I wish I can smash this like button more than once because your videos are really informative and very educational.

  28. Really appreciates your passion to share and sincerity in giving ‘free’ info. You sure has a kind and warm heart. Appreciate your videos very much. Reinforces some of my trading principles. I also learnt new thing like buying and keeping overnight. Yes, I’m also very cynical about market makers. Thank you very much and God bless you with wisdom too!

  29. You’re like that Masked Magician who went on TV and showed how all the tricks were done behind the scenes.

  30. Very informative. You have helped me round out my strategy. I have watched all your videos and feel very confident in my trading. Thank you

  31. Amazing videos, i just cant have enough. Yes today i traded ABEO am currently using RSI. Do you use RSI? And what are your thoughts on this indicator? Please post more videos very educative

  32. I'm a newbie at trading; always like your vids, I've got so much to learn. And your cute smile really helps. Thanks for putting the effort into your vids.

  33. In this FAKE NEWS world, have you ever noticed how some people may post (buy alerts, news, opinions, recommendations to buy) in order to pump up a stock?!
    I’m working a paper trade account, did this and saw the stock plummet 6% in one day.

  34. My only problem with holding small cap stocks overnight is dilution. I've seen offerings drop these stocks up to 70% after hours.

  35. On Sunday i am sitting here in my room to repeat to watch ur valuable videos, when u teach more new penny stocks strategies i am willing to watch immediately 🙂 i know this old man is still interested in learning more this shady field like penny stocks , my daughter thinks i am not wise about this oh well , i am not trading yet i am trying to learn as much as possible then paper trading to check the results then slowly i will start real trades Anyway i do hope u hit 100k subscribers and drive LAMBO SOON ::)) HT have a great week MAHALO

  36. Can you spot these market minipulations while trading with reasonable certainty and if so do they themselves offer any indication on which way theyre trying to get it to move?

  37. I just have to say "wow". You have to be the best teacher on youtube hands down. And you're right, the videos are no-fluff. I mean I like listening to somebody rant as much as the next guy, but I prefer yours with the nice big lettering that serves as a bookmark. These things you are talking about I've been aware of for some time but everybody just pushes technical analysis, patterns, rules, and social maybe. But, to me, that seems crazy when you know its a group of people on computers interacting much like they would in an online video game. It's sort of a financial death-match.
    I have sat in morning streams and watched a small mountain of videos and you are literally the first person. Out of two instructors and the various senior traders and the hours and hours of videos, you are the first. And, you deliver it really well. You aren't too afraid to speak, and you have manners! Booyaa! Thanks!

  38. question so I did a google search and found a few one GNBT did a 2 . 1 split on 10/29/19 and 2 . 1 split on 10/30/19 does that happen often ? or am I looking at it wrong.

  39. Great video, thanks! Love the meat of the move earlier on on low float tickers! Do you use hotkeys? I have mine setup in Sterling to buy on the buy/sell on the bid/ask, adding/removing liquidity. What chatroom do you recommend? Do you recommend buying a thinly traded, low float ticker, with a wide spread, when using BP?

  40. Hello Humble Trader, one question here: What do you consider a low float stock runner?, a stock with only 1/4 of its outstanding shares been traded by that time? Which will be your range please?…Thanks in advance for your humble answer…🙏🏽👏🏼👏🏼👏🏼

  41. hello, my question to you is when is it over to hit gappers and reverse splits? I'm watching videos and everyone is saying to do these patterns in the morning first thing, but none of them say when its to late or when its just over. how long can I hit gappers and reverse splits? thank you

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