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Penny Stock Mastery: Small caps move fast. Your process has to move faster.
How small caps really move: float, dilution, catalysts, premarket gappers, relative volume, halts, Level 2 and the setups that hold up — plus the risk rules that keep you alive in fast, thin names.
Difficulty: Intermediate · 10 lessons · about 1.6 hours
Who it's for
Traders who know chart basics and want a repeatable process. Core principle: In small caps, liquidity and risk control matter more than the idea.
What you'll learn
Understanding Penny Stocks
- What makes a penny stock different — free: Price, float, liquidity, exchange vs. OTC — and why it changes everything.
- Float, share structure & dilution — free: Float, outstanding shares, warrants, ATMs and offerings in plain English.
- Catalysts that move small caps: News, earnings, FDA, contracts — and how to judge a press release.
Finding the Runners
- Premarket gappers & the morning scan: Gap %, relative volume, float and news: building a 5-name watchlist.
- Relative volume & trading halts: RVOL as the crowd meter; how LULD halts work and why they matter.
- Level 2 & the tape — the basics: Bid/ask stacks, big orders, and what the tape can and cannot tell you.
Small-Cap Setups
- The first pullback & VWAP hold: The highest-quality momentum continuation setup, step by step.
- Halt resumptions & breakout risk: Why halts create both the best and the worst entries.
- Avoiding offerings & pump-and-dumps: Red flags that tell you to stay away — before you get trapped.
Risk in Small Caps
- Sizing for volatility, spreads & slippage: Position size, liquidity limits and hard stops built for fast stocks.