Low float stocks can be appealing since they can move super fast. But it's important you understand the potential risks and the rewards for low float stocks. Tim Bohen and I are here to educate you!

🔴 Subscribe for more free Stock Trading tips:    / @timothysykestrader  

Share this video with a fellow Trader:    • Trading Low Float Stocks  

✅ Links I mention and recommend:

Join Tim's Challenge here: https://bit.ly/2Y1LjyS

Get my FREE weekly stock watchlist here: https://bit.ly/2PHqXbc

✅ Recommended video:    • Understanding Short Selling with Two ...  

✅ Recommended playlists:

Day Trading 101: Starter Videos:    • What's The Best Stock Volume To Trade...  

Advanced Day Trading Tips:    • Day Trading Strategies: Elevate Your ...  

My Millionaire Students - Are You Next?:    • My Millionaire Students - How They Di...  

Trading with the Tims:    • Tim Bohen's Trading Tips (Intermediate)  

✅ Follow Tim Sykes and his trading travels:

Instagram: https://bit.ly/1Remh9f
Facebook: https://bit.ly/2ItKo3A
Twitter: https://bit.ly/2P46g8n

FULL DESCRIPTION
A lot of people don't understand the potential risks and rewards for low float stocks. So Bohen and I are here to educate you.

Before we explain the definition of a low float stock, you need to understand the difference between restricted and unrestricted shares...

A lot of stocks have institutional investors, insiders who hold shares, maybe employee compensation plans, and so on — these are the restricted shares.

The float is the freely-tradable shares or the unrestricted shares. The lower the float, the better. Why? The market’s all about supply and demand.

Low float stocks tend to be appealing because they can move very fast.

But that’s a double-edged sword if a stock is spiking. FOR EXAMPLE: Let's say there are a million people who wanna buy the stock, and the float is only two million ... That's 50% of the float. What happens if the number of buyers exceeds the float due to high demand?

The stock price has to go up to inspire people to sell or to scare some buyers away. But if that price goes high enough, the demand will drop.

See? That’s basic supply and demand.

I still encourage people to trade smaller than they think. Low float stocks can get halted. And the volume can dry up quickly — leaving you unable to exit your position.

Always follow my number-one rule: Cut losses quickly!

How do you trade low float stocks? What topic’s on your radar? Drop a comment below and let me know what you want to learn!

#TimothySykes #Pennystocks #Investing

----------------------------------------------------------------------------------------------------------------
Hey, it’s Tim Sykes, millionaire mentor and trader. Thank you for watching my videos. I hope that they help you. I want to share everything that I've learned over the years. You can check out more videos right over there, and also click ‘subscribe’ so that you can watch all of these videos, get that knowledge and become my next millionaire student.*

----------------------------------------------------------------------------------------------------------------* Results may not be typical and may vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here: https://www.timothysykes.com/terms-of...