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If you’re new to trading Penny Stocks this article will help you greatly improve your chances of becoming a better penny stock trader. We are going to focus on what professional traders call psychological support and resistance. What does this mean?
When trading penny stocks there are certain support and resistance levels that are known to professional traders as psychological levels. This has nothing to do with normal support and resistance levels that chart technicians use on a daily basis when looking for obvious support and resistance.
The psychological levels can be revealed on your level II trading screen. A level II trading screen shows you supply and demand for each individual stock. We will not go into a full in-depth review of level II in this article; it is something that all penny stock traders should look into. It is a very helpful tool. Read the rest of this entry »
