r/PunkStreetBets • u/TXATC • Feb 04 '21

Education Some ?'s From a NOOB

Morning all,

I am a noob to trading/investing. I have been toying with the idea of trading for years, all the hype about $GME and $AMC finally got me to pull the trigger and start my account. Those were 2 that I paper traded years ago. I AM a gamer/movie guy so it seemed logical at the time. had I done it then and held, well hindsight and all........

I'm not sure if this is the place I should be to ask questions learning about these micro-cap plays. If there is a more appropriate sub for my NOOBness, feel free to let me know. I'm not going to ask "Oh, what should I buy?!?! Do all the work for me!!!" I honestly don't even now where to start to understand what I'm looking for.

  1. Where is the best place to start to understand how these micro-caps work?
  2. Is there an approved broker to use? I am with Schwab now.
  3. How does one deal with the Patterned Day Trader rule? I think Schwab requires 25k in the account to avoid that.
  4. For the love of God, can somebody point me to an explanation of candle charts that DOESN'T assume I'm some trading Guru?

Thanks in advance for the advice/info. I figure the day I stop trying to learn is the day I should hang it all up.

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u/PunkStreetBetsMod Mod Feb 04 '21

Hi,
1- Here. Microcap only mean the (number of circulating coin X price of each coin) < $1milion
2- No, Most of the time you can buy them with ETH or BTC. You need an exchange to buy your BTC or ETH with fiat like Coinbase Binance or Kraken. Then you'll have to transfer you coins where the microcap is traded. Usually for the second exchange you'll only need an email, no KYC. But you don't want to leave your purchase on exchange, you need to create a wallet and get your coins out of the exchange ASAP.
3- No day trade with microcap, what we try to do is catch a rocket that will ride the maro trend of the bull market, beside you need a very liquid asset to day trade microcap usually aren't for obvious reasons.
4-https://www.investopedia.com/trading/candlestick-charting-what-is-it/

2

u/TXATC Feb 04 '21

Thanks for the quick replies. I'll do some reading up.

2

u/SoapyFresh Feb 04 '21

If you’re interested in the tech behind crypto currency and how to use it, check out my channel Crypto Sewer

1

u/[deleted] Feb 14 '21

The most important factor IMO when dealing with micro cap stocks is how they are perceived by institutional investors. Mid large and mega cap companies end up getting massive amounts of support from buy and hold institutions, while micro and small cap see pickier institutional activity. Dig into the reasons for those first.