what's going on traders welcome back to
another video so you're interested in
trading penny stocks and you're asking
yourself all the time how am I going to
find those really big running penny
stocks in this video I'm going to show
you exactly the characteristics that you
need to look for to have yourself find
one of those penny stocks is going to go
running really big in this video we're
gonna look at stock opt T and then we're
going to look at fin biz and I'm going
to talk to you guys about those multiple
characteristics that you need to have
within a penny stock for it to go on a
big run and after you watch this video
you're now going to know all those
simple characteristics that you need to
look at that you can tell yourself hey
this has an opportunity to become a big
runner chances are and nobody explains
this to you on YouTube and I'll be the
first to do so for you so if you can
please like share and subscribe the
video because by the time you get done
you're gonna know exactly how to find
one of those big running penny stocks
now how you trade it that's a different
story but in this video we're going to
show you exactly what you're looking for
so we're gonna get right into the screen
share here we are the penny stock opt T
that went on an absolute massive run
from four dollars all the way to sixteen
dollars these are the exact stocks that
everyone's like I wish I caught that I
wish I was trading that etc etc so we're
gonna talk to you guys about all the
things that need to be involved in this
particular stock or a particular penny
stock to have a really good running day
because all the time you're looking at
penny stocks right you're like is it
gonna have a good day it's gonna have a
good day well now you're gonna know all
the characteristics to look for in order
to get one of these big moves so for one
opt T from $4 to $16 in one day boy what
a day now I'm going to drag over fin
this alright so we're gonna walk you
guys through all the characteristics so
for one when you're looking at a penny
stock obviously it's got to be cheap I
mean regardless if it's a penny stock
it's usually gonna be below five dollars
all right so for one penny stock below
five dollars number two the penny stock
you're looking at needs to have a low
float remember that low flow that's
probably number one most important I
really don't I really don't know what's
most important as far as all of them but
regardless one most importantly maybe
you need to have a low float stock what
is low flow low float is the supply the
amount of shares that can be bought by
the open public so if you're confused on
what float is after this video go look
up float I've also done a video on it so
number one very important needs to have
a low flow meaning low supply so if you
have a bunch of people trying to buy a
heavy demand low supply prices will go
up simple economics right there simple
understanding of supply and demand so
number one low flow alright number two
the stock needs to have some type of
news or what we would call a catalyst a
news driven catalyst so the stock needs
to have some type of strong and news or
press release usually on that day
because if it has a strong news release
it's gonna grab people's attention and
people are gonna start buying into that
hype so if you're looking at a penny
stock and it has a low float but there's
no news on it that day chances are
nobody's paying attention to it and
nobody's gonna be trading it you're
looking at a dud alright so first low
flow number two needs to have strong
news number three this one is extremely
important that most always every trader
will overlook or doesn't even know this
exists and that's why they find
themselves looking at penny stocks that
are basically duds right here on the
screen I'm gonna circle this or maybe
I'll put it in a red box whatever looks
best we are right here shares
outstanding you want to stock if well if
you're looking for a big runner like a
penny stock this needs to be low that
number needs to be low like 1 million or
even less than 1 million it needs to
have a low outstanding number of shares
to give you a simple understanding of
this in background when there is a low
amount of outstanding shares or let's
reiterate that if there's a high amount
of outstanding shares that usually means
there's a lot of insiders that still
have shares on that stock and as soon as
it pops up they can start selling it or
they will sell it so if you have a lot
of outstanding shares that means there's
a lot of insiders that still have shares
on that stock that can dump it on the
open market
which will dilute that stock have you
ever seen a penny stock pop up and then
it gets crushed chances are it has a lot
of outstanding shares now this is a
simple way to look at it but if you want
to get to the nitty-gritty you can pull
the company you're looking at you can go
into their financial reports or shall I
say if you can go into their 10ks 10-qs
and you can look through their finance
reports and see how many outstanding
shares are are there any outstanding
wards and in convertible notes if you
don't know anything I just said
I would say research it and learn it
maybe I'll do a video in the future on
that but for now if you're confused
after this you need to go look that up
so you want to look for a stock with low
outstanding shares that means the
likelihood that the stock is gonna get
very diluted is far less okay so number
three I believe we're on number three
low outstanding number of shares
basically means the stock cannot be
dumped on or diluted or there's not much
dilution that could take place number
four I think we're on number four I
don't remember I really can't count so
number four what's another important one
this one you don't necessarily have to
have but if it's there even better right
here short float a short float a high
short float anything over really
anything over twenty percent is a good
high short float interest so let's give
you background what is a high short
float interest well if you're long
you're not short if you're short you're
not long get it basically if you're
short a stock you're hoping it goes down
so if you were to take a short position
on any stock because you think it's
going to go down and then all of a
sudden you're wrong and it starts to go
up in order for you to exit your short
position you have to buy shares in order
to close out your position so it's the
opposite of being long a stock if you're
long bias or long on a stock that means
you purchased shares hoping they go
higher so you can sell those shares
reverse it if you're short a stock you
actually sell shares first and then to
get out you buy shares back now for
those of you they're newer you're going
how can you sell shares first if you
don't own shares and how's it even again
not here to explain that to you take
some time to research it but if there is
a high short float interest that means
there's clear
a lot of people they're short that stop
and if they're short that stock and it
starts to go up they're going to have to
do what cover or buy back those shares
which causes additional buying pressure
to the stock that's already on top of
the demand for whatever reason people
are buying it probably the news catalyst
so we're gonna walk you through this
penny stock usually gonna be below $5
low flow meaning low supply mix it in
with a news catalyst it's gonna bring
attention that brings in the demand so
again penny stock below $5 next thing
low float if it's low float means low
supply look for a news catalyst on that
stock if the news catalyst is there it's
gonna bring an attention which brings in
demand so you're mixing demand with low
supply that's already setting you up for
a good move then number three low
outstanding shares even if the
outstanding shares aren't low the stock
could still have a good day
but don't anticipate it to be a big big
supernova this video is specifically to
get you on track to understand when you
might be on top of a supernova or big
big runner not your one dollar move or
two dollar move we're talking ten five
six eight maybe 2000 I don't know maybe
150 like lfi n okay then number four is
a high floater sorry hi shorty or the
float of the stock is very heavily
shorted so short float is very high
which means you have a lot of short
sellers in the stock that can get
squeezed out so let's take a look at the
chart and kind of give you an idea of
probably what happened alright so now we
look at opt T go back so you can see
from five up to 16 let's go back on the
chart the thing had been trending down
for many a long time right so if it's
been trending down basically people are
doing what they're shorting the stock
because it's going down it's been
trending down for a long time chances
are it's gonna keep going that direction
right so you got a bunch of people
shorting it because the stocks going
down down down all right all right all
right you're starting to understand now
let's look at the resistance so a bunch
of people probably shorted that that
move right there a bunch of people that
were short biased probably had stop
losses around this level right and then
even more stop losses
around that level Granta didn't get over
16 but you're starting to see it if I
was a short seller and I shorted here my
stop-loss would be somewhere in this
area if I was a short seller and I
shorted here my stop-loss is gonna be
right around here if I was a short
seller and I shorted there my stop-loss
will be in here I got short on this pop
right and it goes down my stop-loss is
probably gonna be somewhere around there
so as the spikes up gets over this level
short sellers get stopped out squeeze
the stock higher gets over this level
short sellers get stop that squeeze the
stock higher all right so that's exactly
what happened you have all in this
alright so you have low supply ok I'm
typing it and just writing this in
terrible but it's ok low supply mix that
in with high demand right so now you
have high demand so something that
there's not much of but people want it a
lot okay then you have strong news if
you go look at the news tab down here
basically some pump news but what does
it say said you know ocean power
technologies that's right there
keep going down where's it at where's
this good stuff at 9:00 in the morning
here we go ocean power technology wins
contract with leading oil and gas
operator
yeah well I look to find who the leading
oil and gas operator it was couldn't
even find it but if they're so great you
think you put the name in there but
anyways I'm not one to judge so you have
low supply high demand strong news okay
and what else do you have you have a
high short float interest so high short
percent on that stock and then you have
the low OST for outstanding shares those
are all the characteristics that you're
looking for to find one of these big
stocks so now your search for the
endless secret is over for all you
beginners out there how do you find the
bene stock so you're gonna run like
crazy your search is over Connor pull
for an employer I'm trading us fix that
that is all I ask for you is a like
share and subscribe the video to every
social media platform there is so that
hopefully this video gets a lot of views
and grows my channel because I just
showed you literally all the secrets and
all the characteristics and all the
stars that need aligned so that you can
find yourself one of these big
hope you guys like the video hope that
clears things up for you and as always
would love to hear what you guys have to
say in the comment section below
with that being said thanks again for
tuning in and I will see you guys on the
next video