trading 5-15 dollar range vs penny stocks

[mute9003]

i have been trading both penny stocks and the famous 5-15 dollar range

what i noticed is that penny stocks actually move more predictable

even though everyone claims that " those evil chatroom pumpers can unload gazillions of shares and crash the stock" i rarely see that happening
but when i trade the meat of the market it happens constantly.
massive selloffs and fakeouts and traps.
every stock i watched so far had ridiculous selloffs right at the resistance level where it would break out.
this i almost never see on penny stocks and not with that speed.


im trying to trade those but how do you manage that kind of fuckery when scalping or day trading?

if you enter one bar too early you risk getting slapped with that big red bar deal-though.
and if you try to enter one bar too late you basically missed the trade because it already ran up..
or do you enter before the "breaking point" to give yourself some room to exit while still in green?

 

[themickey]

i have been trading both penny stocks and the famous 5-15 dollar range

what i noticed is that penny stocks actually move more predictable

even though everyone claims that " those evil chatroom pumpers can unload gazillions of shares and crash the stock" i rarely see that happening
but when i trade the meat of the market it happens constantly.
massive selloffs and fakeouts and traps.
every stock i watched so far had ridiculous selloffs right at the resistance level where it would break out.
this i almost never see on penny stocks and not with that speed.


im trying to trade those but how do you manage that kind of fuckery when scalping or day trading?

if you enter one bar too early you risk getting slapped with that big red bar deal-though.
and if you try to enter one bar too late you basically missed the trade because it already ran up..
or do you enter before the "breaking point" to give yourself some room to exit while still in green?

What time frame are you talking about here?
Is this intraday, minutes?

 

[mute9003]

Yea small timeframe
Minutes
The drops are happening on seconds
If you watching minutes you wont even see it in time to react

 

[themickey]

Yea small timeframe
Minutes
The drops are happening on seconds
If you watching minutes you wont even see it in time to react

The way I look at it, the time frame one trades must match the sophistication of your data feeds and your hardware and software, in other words, shorter time frames requires more sophistication / automation.

The longer time frames gives one more time to react but the inverse sort of, needs more waiting / patience and drawdowns increase because stuff unravels over a longer time.

It's a tricky one..... because shorter time frames absorb more time / energy in monitoring closely, unless fully automated and that's not easy for retail.

 

[themickey]

So the question to ask yourself, is your system capable of detecting and reacting fast enough.
If not, then move to another longer time frame.
If it is, then crunch the data with an algo where the trend is most likely to break.
Company news flashes also to be considered.

 

[Wide Tailz]

i have been trading both penny stocks and the famous 5-15 dollar range

what i noticed is that penny stocks actually move more predictable

Have you funded your account yet? I would be amazed if this is true with real orders. $100 will literally blast you thru the bid ask spread and unless a huge spike comes, you're toast.

Only thing predictable about penny stox is the eternal downtrend and the market makerz who know you're in and and waiting for a wave that never comes..... (speaking from experience). I've got a hunch many of them just naked short when taking the other size of your entry. It's like free money!

 

[QuantVPS]

A $10 stock could be a relatively-ish mid-cap stock.

 

[maxinger]

i have been trading both penny stocks and the famous 5-15 dollar range

what i noticed is that penny stocks actually move more predictable

even though everyone claims that " those evil chatroom pumpers can unload gazillions of shares and crash the stock" i rarely see that happening
but when i trade the meat of the market it happens constantly.
massive selloffs and fakeouts and traps.
every stock i watched so far had ridiculous selloffs right at the resistance level where it would break out.
this i almost never see on penny stocks and not with that speed.


im trying to trade those but how do you manage that kind of fuckery when scalping or day trading?

if you enter one bar too early you risk getting slapped with that big red bar deal-though.
and if you try to enter one bar too late you basically missed the trade because it already ran up..
or do you enter before the "breaking point" to give yourself some room to exit while still in green?

It doesn't really matter.

Choose the one that is manipulated / appears to be manipulated.
Then the chances of earning $$$ is higher.