Why Do Penny Stocks Always Crash After You Buy them is a great video that will talk about a good amount of market psychology and the brokerage system! I hope I do not lose some of you in this video, but it sure is great!
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23 thoughts on “Why do penny stocks always crash after you buy”
  1. Avataaar/Circle Created with python_avatars Music vibes says:

    can you go over those lines? are they like permanent Fibonacci levels?

  2. Avataaar/Circle Created with python_avatars Jamesw Hill says:

    what if it says ntb

  3. Avataaar/Circle Created with python_avatars Hmong Muas says:

    Tos support told me that if Its HTB= they have no shares to short so i would not be able to short and if its ETB I can short. Correct me if im wrong. New to tos

  4. Avataaar/Circle Created with python_avatars Gap Puma says:

    Good point thx

  5. Avataaar/Circle Created with python_avatars Funny Youtube Shorts says:

    As a broker who has worked at both Charles Schwab and Robin Hood, I can confirm that the brokers don't manipulate stock prices to ensure that people continue to short hard to borrow stocks. We could care less if people make money or not. The gambling addicts will come in either instance.

  6. Avataaar/Circle Created with python_avatars Kevin Cao says:

    Superb!👍👍👍

  7. Avataaar/Circle Created with python_avatars MonkeySpecs301 says:

    but how does the broker have any say in the price? i thought it was MMs at the exchanges that set the bid/ask

  8. Avataaar/Circle Created with python_avatars Jake D says:

    Excellent. Well done!

  9. Avataaar/Circle Created with python_avatars k moods says:

    ok… the brokerage platform does not dictate the price of a stock. What you're saying is ridiculous. You're explaining the phenomenon incorrectly.

  10. Avataaar/Circle Created with python_avatars The AM Trader says:

    Now I know why EVERY TIME I put my 5 shares on limit buy, thinking it would go up, the price then dropped to get my 5 shares filled, and dumped even lower costing me to loose $10 – $20. Now I know. They saw my limit buy, took my $5 and dumped it. Rigged. FML.

  11. Avataaar/Circle Created with python_avatars Bible Truth And Lies says:

    what is this strategy called with the angled lines ?

  12. Avataaar/Circle Created with python_avatars Siegfried Prieto says:

    Find it difficult to believe. But it makes a lot of sense. I can’t wrap my head around 1) the fact that each broker has different status on a stock (HTB va ETB), so if I pay Webull for HTB as a short and it doesn’t go the way I want because TOS is ETB then what happens?? I’ll stop paying my broker. 2) Are brokers really able to push a stock down when it’s HTB?? Or is it just that when it’s HTB shorts with large amounts of money are coming in to push the stock down with their buying power?

  13. Avataaar/Circle Created with python_avatars Francisco D'anconia says:

    Some more detail about this for clarification: It's not magic. Fees are charged because the pool of shares are so few, sometimes down to a few 100k in the entire float. The demand for the shares create their value. The demand is created simply because the companies keep doing toxic dilutive financing whenever their stocks pop on positive PR. Educated players know where the stock is ultimately heading due to these financings.

    The idea that making those shares free to borrow would cease to stock going down is absolutely false. they might be free, but they would still be hard to borrow because there are so few of them available. Either way the brokers aren't going to miss out on that revenue, especially in the now "free to play" paradigm retail trading has entered.

    The rare HTBs that go parabolic are due simply to early shorts getting squeezed. when a stock pops and drops so routinely, every now and then the news is going to rouse up a crowd large enough to out-maneuver the shorts.

    These stocks don't drop because they are hard to borrow, they drop because there are a mountain of bag holding buyers underwater who are selling to minimize losses when the stock spikes. Plus, due to dilutive offerings and such there's a tsunami of selling by investors from their low priced entry through the toxic deal. And when you increase the pool of shares, they are worth less.

    When a company is shit, investors don't want hard equity for their investment, they want shares at a reduced price that they can sell for a guaranteed return.

    It's literally all the fundamentals combined that drag these stocks down. Not borrow fees…

    ***Also, wonder why a lot of these stocks only spike pre-market and then crash at the open? Most people who hold these stocks have limit orders to get them out at a certain price. Most of those orders are set only to fill during market hours. So as soon as the bell rings, all those orders are executed as long as the stocks price is above their limit sell price. Plus, that's also when investors will have more liquidity to sell their shares and get a better price. It all makes sense if you understand the mechanics of it.

  14. Avataaar/Circle Created with python_avatars onats l says:

    You can also add ETB/HTB on your scanner search results on TOS..

  15. Avataaar/Circle Created with python_avatars Allan Welsh says:

    By the way, who owns those stocks that can be shorted? By the brokers or by the clients of the broker or both?

  16. Avataaar/Circle Created with python_avatars Allan Welsh says:

    Man, you are so smart to figure that out. I was thinking the HTB stocks are good stocks amd ETB stocks are bad because they let you short it freely. Now I got it. THank you for sharing.

  17. Avataaar/Circle Created with python_avatars Kirk Spinelli says:

    In other words… buy puts on htb

  18. Avataaar/Circle Created with python_avatars dev ops says:

    this guy looks goofy, but he is correct. I never short a ETB, those things squeeze like hell, think wimi, eq

  19. Avataaar/Circle Created with python_avatars Investitude says:

    But Connor, what strings do the brokerages pull to make sure the HTB stocks fall more often???

  20. Avataaar/Circle Created with python_avatars Tyler Gomez says:

    I love NORTICING similarities 😄

  21. Avataaar/Circle Created with python_avatars øß_Se$$ioñ says:

    That face in the thumbnail brought me here.

  22. Avataaar/Circle Created with python_avatars Alexandra Stratan says:

    gold nuggets here

  23. Avataaar/Circle Created with python_avatars J Young says:

    literally every ETB stock on TOS was in an uptrend and every HTB in down trend , i checked

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