All right Today we're going to talk about the number one technique and process to trade what I call and most people call true penny stocks. Okay, when we're talking about true penny stocks that's stocks less than a dollar now I Know that might be confusing some of you because you're like, well, if it's under a dollar, it's a penny stock. but in like standard world of Wall Street Basically anything up to ten dollars is a penny stock. You know if you go back, it's a little different these days. but if you go back um, years ago like almost all Financial media uh Wall Street Journal CNBC Again, it's a little different these days it's got a little more Wild West out there. but like if it was a stock under 10 bucks they they would just have like unofficial rules. they wouldn't even mention it, you know? So there was always kind of this rule to ignore anything under 10 bucks. They're penny stocks. So now to me and most day Traders when we talk about true penny stocks, we're talking about those sub one dollar stocks now. um sometimes I can I Can be a little misunderstood because when we're on pre-market prep and stuff I'll I'll frequently mention I'm not, you'll hear me say Hey Big You know a true penny stock running and last time they'll say is I'll you know I'm not a big fan of them. Okay, and when I say that it's not that they're not good trade opportunities, they're awesome trade opportunities I'm going to show you two killer ones from today that played out very nicely and were probably two of the best stocks of the day and Oracle nailed them. But the reason allow me to kind of give a little bit of context. One of the reasons but I say not a big fan is you know I Love big short squeezes I love those epic short squeezes that blow through whole dollar half dollars High a day Key psychological levels because I think those are some of the easiest place to understand. So when I'm on the channel or I'm on pre-market prep and I'm teaching others about these I I Think now you may disagree. but I think that when you're talking about this two dollar stock that's squeezed up to a three, pulled back to 250, then reclaims three. It's got chart history where it ran through three before you've got a little bigger picture, you can kind of lay out. You can start dropping your lines and you can look at those key levels again: whole dollar half dollars, 52 weeks, multi-month breakouts, etc etc. and you can kind of understand the idea behind the short seller Panic type idea. And that's why you see. whether or not the stock squeezes epically at a high a day or squeezes epically at the previous day's break or or at a red to green or all these levels we talk about, you'll almost always see follow through like like, say again, some big Spiker that goes from two bucks to four bucks pulls back, grinds, grinds, grind, reclaims four. Now I'm not saying they all go to five or six, but you'll always see that big candle at the high day. typically the biggest candle as you go in the afternoon. Now why is that? That's because shorts are loaded. Okay, and that's a predictable move. Now again, sometimes they slam back fast. you take the loss, you can't get out fast enough. That's trading. But I teach that setup because you can see the prophecy fulfilled basically, and that is something that happens over and over and over again. Now why does that happen? Because people love to short two, three, four five, six seven, eight nine, ten dollar stocks. People tend not to like to short the true penny stocks because number one, you've got different margin requirements based on Brokers A lot of Brokers have What's called the 250 rule where you got to put up different buying power for penny stocks under 250. That's not Universal but a lot of Brokers enforce that. Also, there's some quite frequently they're just really hard to borrow and at the same and vice versa. The liquidity always isn't that great. so you got to take such huge positions on the short side that it can get really scary. So not saying all the time, not saying always. I Always say that there's no absolutes in trading. Okay, nothing always happens and nothing never happens. Best way to blow up is say that you know this. This has never happened before. just like you know. FTX and the crypto you know or or uh uh, made off or anything. oh it's never happened. Oh late 120 years Lehman Brothers is aren't out of business yeah Famous Last Words Anyway, that being said, what's yo? That doesn't mean they're not good plays, Doesn't mean they're not good trades. You just got to have different expectations and then the last point and this might be the biggest thing. Oh Tblt. Beautiful. Tblt is a good example of a low float short squeeze. Okay, this video is about penny stocks. Look up Tblt on uh November 14, 2022. Anyway, um what? I see so many new Traders get suckered into and this is the biggest thing I don't like is and maybe you've seen this and maybe you've succumbed to this. like every 10 cent stock is going to a dollar like everyone. like like and again, maybe you've succumbed to this. or maybe you've seen people on Twitter or stock twits or whatever. It's it's just this weird psychological thing where almost nobody is like hey, like let's say it's a two dollar low float. Nobody is like oh, it's going to ten Okay, I mean except for just absolute Kool-Aid drinkers a lot of people will be like hey, this thing could go to two to four, maybe go to five but so many people look at some 20 cent stock and they're like it's going new dollar it's going to do. It's going to a dollar, It's going to a dollar, some 10 cents that some one cent stock. I Mean it's like every single true penny stock in the in the in the messed up head of True Believer bag holder penny stock Traders is going to a dollar. so just understand. don't fall for that. And what's great about Oracle is it can guide you through the levels and you know when to take profits and you don't think every penny stock is going to a dollar. Okay, so just learn that just trade the levels, trade the reaction and I don't know why that. that's again why I Caution: Newer Traders default or not not to focus on them is they end up even if they don't believe it. In the beginning, they eventually fall for the Kool-Aid and now they're bag holding these stocks and you'll be on pre-market prep. That's where I go live. Every single morning there's people asking about this penny stock that you know true penny stock. some six cent stock that spiked nine months ago and they're like what do you think and I'm like what do I think it was nine months ago Brother: Well, I thought it was going to a dollar. Yeah, good luck with that. So anyway, don't believe them, Be extra extra skeptical skeptical I Mean listen, as sketchy as two dollar low floaters are, 20 cent true penny stocks. Even worse. All right. So how do we actually trade them? Z-e-l-a and F-r-g-t were two great examples from today. Use Oracle Okay Click the link below. You can get the trial, the stocks to trade, or you I don't know why you didn't even get the trial. Just get the whole thing. But the trial has a fully functional functioning uh version of Oracle You get access to all the features and so what? I Uh, what? You'll hear me say every morning on pre-market prep, wait for the levels. Okay, so what you get in pre-market with Oracle One click the most 15 potentially volatile stocks of the day. Then at a couple minutes after the market opened, you get your signals. Okay, now why is it a couple minutes after the open? Oracle collects all of the prints. Okay, all of the transactions that happen first few minutes after the open, it takes all pre-market data. It looks at chart history and then it gives you those levels. Okay, I've got a ton of videos on the channel talking about Oracle more. But basically a few minutes after the market open, you get your signals. Which is great because I Especially these true penny stocks. I Would almost never recommend trading them in pre-market wait for Oracle So let's look at Zela. You got the signal. 30 cents. Would have gotten it a few minutes after the market opened. It broke 30 cents at 9 46 a.m went all the way to 48. basically a 50 move. Help pull back I can help V-wap Oh no oh no. this is the worst part. So you could have took profits at the 44 level. If you you know if you if you didn't sell into that rip it pulled back hard take profits I would beg you to take profits here at this next 44 level. Again, that's 15 cents above the Buy Signal at 30 that's like a 50 gain. Now the reason I go oh no is I know people are gonna look at this and I'll get it tomorrow I know what they're going to be like? Well Jim it was a view app hold I overnighted it. no no it's not going to a dollar, it's not. Anyway, nice 50 gain that you could have sold into that level once it pulled back. big candle retested it I hope everybody's out of it. Okay 30 Cent signal ran all the way up to 46 48 cents Beautiful move Frgt 51 Cent signal right here. basically beautiful dip and rip so spikes in Pre pulls back, retest that 51 level goes all the way up to 62 and then pulls back hard into that 55 Oracle level. That would have been your sell point. You had two to three opportunities to sell again. 10 cents a share. Not colossal but a nice game. You know again, 10 cents a share on a 40 Cent stock. Realistic Goals: Okay, so that's how I recommend trading true penny stocks. Number one, Don't believe them. Number two, don't trade them in pre-market number three. Use the Oracle levels. take small gains, be consistent, stack those wins, and then once you build up your account, you can forget about these true penny stocks and trade five dollar low floaters like real men and women. So all right everyone, that means said, if you you know if I mentioned pre-market prep a lot, click the link below. I'm live every single day. 8 30 We talk, We talk real stocks. Uh, high price, low price? Um everything in between 15 minutes. Rapid fire every single day. Click the link. Would love to see you tomorrow morning at 8 30 Eastern.