A final lesson for anyone trading or God forbid investing in penny stocks:
From a long-term investment perspective, <insert symbol of your favorite bagholder stock> represents a high-risk structural short or avoid. The company's business model is fractured, relying on pivots across completely unrelated sectors to drive financing rounds and avoid Nasdaq delisting.
From a short-term trading perspective, it is purely a tool for momentum trading. If you are tracking this for short-squeeze setups or catalyst trading, the key is understanding that the spikes are meant to be sold. Any piece of genuine, high-volume news triggers an algorithmic and retail pump, which management historically uses as an immediate window to issue equity or close a private placement. Treat it strictly as a short-term catalyst play, and never get married to the narrative.
Keep this in mind as you read "dd" and "news" and other narrative pushed by management, bots, or criminals - 99% of it is fake so they can dump worthless paper on you, the dumb share(bag)holder.
Are there excellent trading opportunities in penny stocks? You better believe it, and plenty of them every day. But they are a depreciating asset because of management greed and constant dilution.
Good luck in your trading, and have a good weekend!