How to Short Penny Stocks SAFELY? Penny stock short strategy for beginners $CEI $ELTK

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How to short penny stocks SAFELY? We’ll be going over how to plan out your trade in this penny stock gap down short strategy for day trading beginners. This is also known as day 2 short, first red day short, low hanging fruit short, penny stock gap down short short up.

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Time stamps:
1:05 Criteria #1- Daily extension candle on penny stock with high volume
2:39 Criteria #2 – Gap down and trader psychology behind this penny stock short strategy
3:41 Trader psychology behind this penny stock short strategy and trading the gap down
5:44 How to enter this penny stock short ($CEI stock)
7:16 SAFER way to enter the stock short
8:00 Short sell restriction explained. What is SSR? ($ELTK stock)

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Penny stock GAP UP LONG strategy▶︎
How to day trade gappers and gap ups▶︎
How to draw support and resistance lines▶︎
Risk management strategy for beginner day traders▶︎

In a strong buyer’s market, it’s SAFER to short penny stocks on day 2 after a parabolic run on day 1. Low float runners like $CEI $SOLY $KPTI were perfect examples of the day 2 short.

When shorting these penny stocks after a gap down on day 2, you are essentially taking advantage of the emotional selling by the long traders who were trapped, as well as the insiders’ diluting and selling their own shares of this penny stock company.

This short selling strategy focuses on having a significant gap down during the second or third day premarket trading session. The gap down is what will cause an emotional panic. It’s also important to take note of SSR, short sell restriction trading after the stock has gapped down overnight.

It’s crucial to always respect risk management, especially if you are shorting a low float penny stock. You can always flip the trade long to join the right side or short on day 2 backside and day 3. Do not baghold the short position after the penny stock reclaims the red to green. The stock will likely short squeeze everyone out and run higher.

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DISCLAIMER: I am not a financial adviser nor a CPA. These videos are for educational and entertainment purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.


Humbled Trader says:

🤑What's your experience like SHORTING penny stocks? Feel free to share with me below!

watchotrade says:

Great video. The only thing I would say is that risking one dollar is too much risk. The safest way to attack is to wait for the stock to break below the support level where longs got in and wait for the stock to bounce and retest the support level that is now resistance and if it rejects then attack short

Luis Huang says:

7:24 the PM low is marked at $5.80 per your suggestion, but how about the other lower red candles around the $5.00 area, do we disregard those?

Tyrus Barnett says:

Humbled Trader you rock!


i'm going to give this video at least 10 views, I love your content, curious how long you've been trading. I know you started in some of the similar chat rooms i've been in. I'm identifying more with some of the ways you teach in your videos as i'm moving away from those chat rooms to focus on my own process. !

don says:

Bag holding penny stocks sucks . I need to learn shorting !!!

Javarix Takteritrix says:

Great video thanks. Can you make a video about your trading history, like from beginner to full time? How you transitioned to being a full time trader? Thanks! Just a suggestion.

Marvin Sanders says:

How Do I get the coffee to you? I love Coffee

Wilson Mar says:

The broker usually don’t have share to short

craigcmu says:

hello humbled trader! I have a question for you. Right now i am using a margin acct and i have not done over night holding yet only day trading. How much does it acct for holding your acct over a day if you have a holding in a stock. i am afraid the margin will put me in the red that why i have not done it yet.

Streamingmadman says:

LOL, I like your statistics explaining the correlation between likes & profits. Great content.

Blockchain 101 says:

another very clear and informative video 🙂

Freedom 1 says:

I hit the like button… I’m gonna make more money

Simon Shawn says:

11:04 lol….love it. That ELTK 2nd day gap down short killer example was great – i was one of the casualties.

StochasticsLeo says:

Man. Sounds to me like you are stealing this straight from another Trading Club I know…….. wanna confess ?

B The Story says:

Great video! Love how detailed you are. Inspired me for some of my future videos 🙂

Hammer's Penny Stocks says:

Broker to short penny stock?

lorddarthstar says:


Heartless Soulless Scalper says:

This might sound weird, but I suspect what you’re teaching here is similar to what Stephen Dux is teaching. I suspect, but who can be sure? The guy is impossible to understand. I don’t mean his accent, I just mean the words he chooses to use don’t make as much sense to people. Your explanations are so straight forward and simple, and you cover all the logical steps between the main points. It’s a gift. If you ever want an idea for a new video you could do a comparison between what Dux does to short, and what you do.

Andrew Bowden says:

I need more content!! I want to learn more so I can buy a LAMBO!!
Just kit-ding. Hope all is well, and thank you much for all the great content! It has helped a tremendous amount

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