Hey Insiders,

I hope all of you had a fantastic weekend.

Kicking off the week with some insights from the trenches of momentum trading. I recently sat down with Henry, a penny-stock analyst who's been trading and perfecting his strategies for a while now.

He gave some very interesting insight, (some of which I had never even considered before), into the mindset of a penny stock trader, how to trade setups, and how to stay afloat when market conditions aren't necessarily in your favor.

Let's dive right into it.

Henry, what was the pivotal shift that took you from inconsistent results to consistently profitable in momentum and low-float trading?

"In my honest opinion the it all started in a mindset switch. I started trading thinking this would be a breeze, but like I've told everyone that asks, this journey is a marathon, not a race. You will need to journal, you will need to dissect yourself and face your greed, anxiety, impatience, fear, and many more emotions traders face on a daily basis. You'll need to replace these emotions with statistics, and that can be an incredibly hard thing to do."

Give us the high-level rundown on your approach. Key criteria for spotting setups, without spilling all the beans. What's the edge that makes it work?

"The way I trade is quite unorthodox. I start my trade day at 8pm when after hours closes, I look for low float stocks priced between $1-$15, but my favorite range is $2-$5, that are likely to pop at 4am when people FOMO trade it. When enough people see the momentum, you can get some monster gains out of these tickers. During September we actually had a ticker called DSY that went up 2215% in minutes!"

Low-floats can explode or implode fast! How do you manage risk, size trades, and handle those gut-wrenching exits?

"To trade low-float tickers successfully, you need to be disciplined, be able to make fast decisions, cut your losses FAST, scale out your trades, and know when to add more! You must have set stop losses that you fully respect, and a max daily loss that you fully respect. You also need to learn to not cut your winners so quick."

What's the fastest way to build an edge in this space without blowing up your account?

"My advice to aspiring traders are to keep your market tuition cheap, you don't have to have a $10,000 portfolio to start. Keep your size small, and only trade with money you're willing to lose, because statistically you will lose money. Journal every day, write down your mistakes, and by the end of the week, make a summary and apply what you write down."

"I've blown an account, I've studied for 10+ hours daily, that's what it takes. It takes obsession, discipline, discipline, discipline, and willingness to change."

Henry's no bullshit take? Trade execution is hard, but the mental aspect of trading can make or break your potential in trading.

Huge THANKS to Henry for sharing his time & wisdom. I've linked his Discord & YouTube below - show him some love.

YOUTUBE | DISCORD

Anyways…

That's all for now!

- Equity Insider

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