Transcription
Watch what's going to happen here. We're going to watch it. This is a perfect teaching moment for penny stocks. This is where you're going to watch why most new traders will fail.
Here's what's happening. I'm going to tell you what's going on, the psychological, psychologically what's happening. Up 750% for 15% on the day has some news, maybe garbage or not. It's gapping up. Who knows what some penny stocks that again, it's meeting penny stock traders' criteria. News, catalyst, gap up on the day, volume, low float. Hitting the scanners. So all those, you know, scanners out there for momentum, it's hitting the scanners. And this thing is ripping up.
So now the penny stock, you know, the day trader trading service, whoever is running that chat room, they tip. They're not buying out here, guys. Or they're buying and they're scalping real quick. They're using boom. See that? Right at the $8 amount. You guys see what just happened? Right below $8. That's where they're selling. They bought down here in the anticipation of a break or they bought right here at the break of high of day. Right here. Break of high of day. Look at that. That's exactly where the new traders are buying. The professionals are not buying here. They bought down here or down here, sold up here and look where it's going, right back to that $6 amount, which is where? That breakout area. See that, guys? Real time, I'm showing you guys this. This is it. This is penny stock trading.
If you guys want, I wasn't planning on doing a penny stock video like this today, but I couldn't have scripted a better play right here. It's shaky. Then it hits. Why is, why did it dump? Well, this thing flew. It's hitting a whole dollar amount after, you know, this is being traded up. Shorts come in. You have to find shares to borrow. And that means, uh, you know, that these brokers have to have shares to allow you to be able to go short. So when you sell high, you want to buy low, right? So you sell at a resistance level, eight bucks, let's say, and then you want to buy it on levels at, let's say, 780, 750, or $7. You want to >> [snorts] >> buy it low.
So you have the other trading services and day trading rooms that are out there that are waiting for these bullish, um, you know, either Discords or regular day trade rooms that are buying and selling, right? So they're going bullish. Every all those kind of services, they're watching these, um, momentum charts. They're getting in, buying low, selling high on hot keys. Remember, so this is kind of the game, going back to what I was saying, the game of penny stocks. You're in the chat room. Every, they say day trading is risky, right? Don't follow me, don't mirror trade, all that good stuff. That's what we tell you. Not saying they're doing it on purpose, but the reality is, look at that. See, guys, you see what's going on as I'm talking to you guys here? Look at this freak freaking thing ripping. I love that. This is a great, uh, this is real. Look at that, fast. You see? Okay, this is a tick chart. I'll go back to gurus in a second. You see that? $8, boom, down to 750. Let's keep watching this as I'm talking to you guys. This is a 500 tick, again, it's like a microsecond. You see how nasty it's getting now? Um, [snorts] so, they say don't follow them, right?
Anyways, so, okay. They say don't follow me, right? But remember, let's call it like it is, guys. Many new traders, I don't want to, got to be careful what I say, but I'm not really politically correct. But a lot of traders are like addicts, they're gamblers, right? They come in, you want to get that high, that endorphins. That's why people like things like gambling. That's, I'm not saying anything's good, bad, right? That's why, you know, make your own decision. Things that get your emotions going or adrenaline going. Trading is no different, right? Look at these things. It's like a video game. Bum bum bum bum bum bum bum. It'll, hey, look at that. Bum. Right up. Up, down, up, down, up, down. Endorphins, right? You hear this other trader, "Hey, I made this. I made that. I made this. I made that."
So, typical, you know, new traders, they can only maybe buy 100 shares or 1,000 shares of these penny stocks. And hey, listen, you can make good money on that. However, not great. It's not like video game numbers when you're watching somebody that has a million or millions of dollars in their brokerage account. They're not buying 100 shares. They're not buying 1,000 shares. They're moving this stock that's a very low stock, buying 10,000 shares, 20,000 shares. So, picture whatever big name day trader that's out there. No hate on it. This is just what it is. They're buying 10,000, 20,000 shares. They're buying, moves this stock, which brings more volume in. They're moving it. So, they're buying these little, little flag breakouts. They're buying here, selling here, buying here, selling here. And meanwhile, they say do not follow them into the trade, knowing full well that many of their followers are going to follow them into the trade. Is that wrong? I can't tell you. Is it pumping and dumping? I can't tell you that. The actions are that way. But, you know, it's interesting, right?
So, you, I say all of that because I'm showing you guys this. The same thing. I'm not buying these shares and showing to you, but I'm showing it to you live. I showed you, you know, a live, whatever, you can say paper trade. I'm showing you this action as it happens. But, if I was to trade this stuff for you guys, like that's the gray area of like, if I was going to trade penny stocks, am I going to? Here's the key, too, right? Another thing, I'm just kind of blowing things up here in the industry, I guess, saying this stuff. Why not show your screen if you're buying all these low-float stocks? Why not, if you're a big-name day trader? Maybe some of them do, but I don't think a lot of the big-name ones do. See how this is dumping as I'm talking to you guys? It went from eight bucks down to 750, down to 650. Are you guys watching? Whole half-dollar amount. Whole dollar amount. Whole half-dollar amounts. Watch these support and resistance lines, right? Watch what happens. 650. Watch this $6 range right down over in here.
So, why not show your screen if you're one of these companies, right? So, if you're not going to call yourself a pumper and dumper and you don't want people to follow you, give them, see that bouncing right up? Half-dollar amount. Why not show your screen so you give them the same fair entry? Right? I'm showing you my screen. I'm not entering it, but it's a paper, you know. Well, this is a real account, but if I was to trade it, I would. I was showing you my paper account before. Now, if you show that live and you show people live that you're buying 10 or 20,000 shares, now it's all more of a level playing field. It's still risky following them, but the reality is, is you, they can see your screen, "Hey, I'm buying here." And then it's an easier, um, easier way to, uh, um, follow what's going on without getting trapped.
Now, meanwhile, the reason why I say all of that is right here. They're trading these little breakouts, and this is where their followers are buying. See tweezer top, whole dollar amount. Guru comes in down over here at 750. They're in. Who knows what this tick tick is, which is microsecond. This could be 10 seconds. "Hey guys, I enter." You know, not me. I'm, don't listen to me. "Hey guys, I entered 10,000." They don't even actually tell you how many shares they bought. "Hey guys, I just entered right here." "Oh, cool. I got to follow him." By the time you get in, "Okay guys, I just exited." Hot key, hockey in and out. And they're not using Think, you know, Thinkorswim. They're using Lightspeed, CenterPoint, Interactive Brokers, Speed Trader, stuff like those. So, this is a perfect, perfect, perfect way to show you guys penny stocks in real action. And you could relate this to the market and futures as well, you know, just use the volatility of, watch these patterns show during times of huge volatility in futures.