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Time stamps:
1:00 - Breakout traders psychology
2:28 - Momentum traders
3:43 - Short sellers
5:46 - Dip buyers
7:30 - Swing traders
8:55 - What do all these traders THINK at the market open after an overnight gap up?
11:06 - Stock charts represent psychological emotions of traders buying and selling
These are the FIVE major players in the penny stock market
1. Breakout traders
Perhaps the most predictable traders in the market. These traders buy penny stocks when it's near premarket high, intraday high, and previous day high. Breakout trading pattern is the most commonly taught strategy in many day trading chat rooms. Thus the crowded buying could cause penny stock breakouts to fail.
2. Momentum traders
Momentum traders join strength after breakout traders have taken the stock higher. Momo traders love volume, hype and strong candles pushing parabolic to either the upside or downside. These traders will sell their penny stocks once they see an exhaustion candle and weakness in the penny stock.
3. Short sellers
Short sellers love to lurk near the top of each stock. Shorting penny stocks are a very commonly taught trading strategy as well. But the immature shorts could sometimes be victims of a penny stock short squeeze. To get out of their position, short sellers have to buy to cover. That's why during penny stock intraday break outs the squeeze can go parabolic because the shorts are trapped.
4. Dip buyers
These are traders who love to buy stocks that's going strong on the day on pull backs at a cheaper price. Dip buyers and short sellers are often looking at the same support level to buy. Those two players buying creates the "bounce pattern" we see a lot in intraday trading.
5. Swing traders
Swing traders buy penny stocks that are holding gains well and closing strong on the day. These traders love to sell their stocks on overnight gap ups or the morning spike. Which is why many times when penny stocks gappers gap up overnight, they tend to sell off on profit taking.
The buying and selling of these five players are what creates the technical patterns many beginner day traders are studying. While learning strategies and patterns certainly help, it's important to understand that PEOPLE create these patterns. Therefore it's even more important to study how people think and learn day trading psychology.
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DISCLAIMER: I am not a financial adviser nor a CPA. These videos are for educational and entertainment purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.
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By Stock Chat

where the coffee is hot and so is the chat

25 thoughts on “Intro to penny stock trading psychology – day trading for beginners”
  1. Avataaar/Circle Created with python_avatars TokaMane says:

    Thank you

  2. Avataaar/Circle Created with python_avatars crabjunie says:

    "and there's more, i'm not done yet :D" unironically the funniest thing i've ever heard from you XD

  3. Avataaar/Circle Created with python_avatars Fraktalia says:

    Are there any real comments here? Most seem to be from bots (Accounts with 4 digit numbers at the end). Your channel looks quite scummy

  4. Avataaar/Circle Created with python_avatars RaineOrShine Motivation says:

    So far this is my favorite video you've made. I learned so much! Thank you for your hard work! You're amazing.

  5. Avataaar/Circle Created with python_avatars Navid Ghods says:

    Thanks! Awesome! Just like your other videos.

  6. Avataaar/Circle Created with python_avatars Yusef Burgess says:

    Humble Trader, your comments are spot on. Thank you for sharing!

  7. Avataaar/Circle Created with python_avatars AnnGee says:

    Hey Shay, when you said thesis, what does it actually mean?

  8. Avataaar/Circle Created with python_avatars Tronghung Dao says:

    ❤😮😅

  9. Avataaar/Circle Created with python_avatars Donald Patrick Kelley says:

    wow! so good shae!

  10. Avataaar/Circle Created with python_avatars HonestLady - إحترم تحترم says:

    So, this is not for beginners 😮

  11. Avataaar/Circle Created with python_avatars random archives says:

    Sometimes things just ‘’click’’. This is one of those ‘’missing piece of the puzzle’’ moment/video. Love it. Cheers!

  12. Avataaar/Circle Created with python_avatars Jason Doss says:

    In other words… be a swing trader 😅

  13. Avataaar/Circle Created with python_avatars Ellen Teddy says:

    You laughed about them mudding me and how much money did you make and pay them and not at all yet pay me?
    Do you think I am less than fcking sincere?

  14. Avataaar/Circle Created with python_avatars Ellen Teddy says:

    It will be questioned on, line by line, about a very short period of time.. so there shouldn't be that much torture required and they will hopefully be more so proven as reliable witnesses, more known as truth tellers and knowing of facts… right?

  15. Avataaar/Circle Created with python_avatars Ellen Teddy says:

    Well, after , they may give factual evidence and testimony on that as well.

  16. Avataaar/Circle Created with python_avatars Ellen Teddy says:

    And if not, I pray that GOD enforce it upon them who are disobedient to my command…it's less than leathal, and they have all aided others to attempt to murder me.. many times.

  17. Avataaar/Circle Created with python_avatars BigBitsMama says:

    Thank u

  18. Avataaar/Circle Created with python_avatars Dee8Bee says:

    I´m 3 years too late, but yes! Please make videos about trader Psychology 🙏🏽

  19. Avataaar/Circle Created with python_avatars M S says:

    You are fantastic
    Thanks for your input

  20. Avataaar/Circle Created with python_avatars Aleksander LockHard says:

    Thank You So Much Shay 😘

  21. Avataaar/Circle Created with python_avatars omarc4ut says:

    Great video, as always. Keep up the great work. 🤙

  22. Avataaar/Circle Created with python_avatars james Jones says:

    Thank you for good video:)

  23. Avataaar/Circle Created with python_avatars Paul Kap says:

    That was one of the most helpful breakdown of thought process of the different types of trades and chart analysis. Thank you very much! I would really like to see more of this.

  24. Avataaar/Circle Created with python_avatars Andy M. says:

    Hey Humbled Trader, Jut curious what indicators are you using in this video?

  25. Avataaar/Circle Created with python_avatars Jodie says:

    This was SUPER helpful! Having a better understand of the thought processes of the other trading styles look at the same stock as you are was really eye opening. Certainly shows there’s not right or wrong way, just finding the way that works best for you and mastering it.✨

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