Day Trading Videos (27 lessons)
Next Lesson in this Course:

Day Trading a Low Float Parabolic Stock | Tradingsim Video Lessons

0 Flares Twitter 0 Facebook 0 Google+ 0 0 Flares ×

Trading low float stocks are a day traders dream, especially when there is a news event to trigger a run, it is like pouring gasoline on a fire. These stocks can go parabolic very quickly due to the lack of liquidity in the stock. A couple times per year you will discover a low float parabolic which takes off 1000% or more in a matter of hours to days. These can be extremely profitable but they can also rip your shirt off. They trade with extremely wide bid/ask spreads and make it very hard to get into it without entering market orders.

hmny-stockIt is very important to exercise discipline when trading these stocks. A 1000% move in a short period of time is extremely rare and in many cases, these stocks will eventually make it back to where they started. It is very important to control your greed when day trading low float parabolics. You absolutely want to keep your eye on managing risk, first and foremost. Do not oversize your position because you want to get rich quick, it is a recipe for disaster. If you are not able to emotionally handle the swings that will occur in the price, you will definitely be taken out of the position when you see large swings in your account balance.

If you enjoyed the video, please "like" us on Youtube.

If you want to learn how to trade like a professional, use Tradingsim to build your trading acumen, instinct, and money management. Click Tradingsim 7 day free trial to take our 7 day trial.

Related Post

Why Tradingsim Rocks!

More Courses in Day Trading
Awesome Day Trading Strategies

Welcome to the Tradingsim Day Trading Strategies home page, where you can find over 90 trading strategies. We cover everything from technical analysis to price action techniques..

Day Trader Salary

Day Trading Basics

he Tradingsim day trading basics category provides a number of articles that can help you get started on your trading journey. In addition to these articles, you can also test drive our trading simulator which uses real historical tick data. There is no credit card required to try out the application and we also offer a free trial period.

Day Trading Indicators

Welcome to the Tradingsim Day Trading Indicators category page. You will find a host of articles that discuss specific trading indicators and how you can use them to improve your trading results. Once you are ready to apply these skills in the real world, do yourself a favor and take a test drive of our trading simulator. We believe in our product so much, we offer a free trial period with no credit card required to try out the application.

Day Trading Money Management

Day Trading Penny Stocks

Day Trading Performance

Day Trading Platform

Day Trading Software

Looking for day trading software? Well check out the day trading software category on Tradingsim where we discuss the technology behind active trading.

Day Trading Taxes

Day Trading Videos

Welcome to the Tradingsim video library. We are constantly adding day trading videos, so sit back, relax and enjoy the show.