Penny Stock Trading Psychology
The secret to day trading penny stocks is not any patterns or indicators. We’re going to analyse trader psychology behind low float penny stock runner $SES in this video.
Trader psychology is crucial when trading penny stocks. Instead of memorizing patterns or relying on indicators, you should Understand how the other traders think and game the crowd in every single step.
Understand how break out traders and chat room alerts work, will allow you to avoid fake outs. At the same time, understand how short sellers think will allow you to buy these runners and join the short squeeze or a parabolic move.
At the same time, be mindful of overall market sentiment. In the small cap market, the cycles change every quick, sometimes even overnight. When the crowd is overly bearish, short squeezes happen after a gapper reclaim mid day.
At the same time, when the crowd is too bullish after $SES ran, and hopping on to $WWR, $PSTV, that creates many fake outs and everyone would panic sell.