Penny stocks are the sole target for many day traders because of their heightened sense of volatility.
This makes sense considering that it takes much less outside trading influence to affect the price of a low-priced stock in the market.
This article is going to look at a technical analysis strategy which virtually every professional trader uses to anticipate market behavior in cheap stocks which you can begin using today to realize your own financial independence without having a business degree or background in analytics.
Professional traders rely heavily on analytical stock programs.
These are programs which themselves use a technical analysis strategy to pick up on overlaps in stock behavior and use that to identify future behavior in stocks in the current market.
To use an example, say there is a stock of the past which inexplicably went on an upswing in the short term.
By analyzing those market factors and applying them to the current market to look for similarities, you can tell exactly what to expect from a current stock which exhibits the same behavior.
This technical analysis strategy is the most reliable way to anticipate market behavior hence the reliance on it by professional traders every day.
This is because this strategy is based on where the market has been and where the market is going, but also because this technology lays out explicitly exactly where you should be investing and even where to set your stop loss at.
Consequently, no emotions or other outside factors are able to pollute your trading when you rely on one of these programs and this technical analysis strategy.