Your daughter is definitely not too young! The behaviors she is exhibiting is readiness to potty train, she just isn't comfortable using the potty yet and as one mom mentioned, she may have control issues. My daughter also cannot stand to be wet and this started at about 20 months and she was fully trained within two weeks.
We watched Bear in the Big Blue House on potty training and read lots of books about potty training. Especially "Once Upon a Potty" by Alona Frankel. Be sure to get the right one because there is a boys and a girls version. This clearly shows the transition from diapers to using the potty.
Some people are not comfortable with this, but I let her watch me use the potty, wipe, and then she would flush for me and we would wash hands. I told her that our bodies made the poo poo and pee pee from leftover food/liquid like garbage and that we had to get rid of it. Going potty in your pants is yucky, but babies have to use a diaper and when you get bigger, you learn to use the potty. I equated trash to the garbage can and potty to the toilet.
My daughter also got m&m's as a reward for using the potty; one in each hand while I took care of wiping because 20 months is too young for this and you will have to help her out until 2 1/2 or even 3. I did not give m&m's unless she used the potty, but since your daughter is having issues, you may want to encourage by giving her one just for trying.
We didn't use a sticker chart at home, but they did at her daycare. If she likes stickers go for it!
I would also take her to the store and show her all of the pretty panties and buy her a couple packets with her favorite characters on them and one packet of plain ones. Start out with the fun ones and keep reminding her to use the potty so she doesn't get "Cinderella" or whoever wet. If she refuses, switch to plain panites and then back to daipers...tape them on or use overalls, onesies, backwards jammies, whatever. If she is having accidents, but is heading to the potty keep giving her chances with the pretty panties and keep reminding her.
Remind her every half hour or so at first, every hour as she starts to make it and so on. After she has something to drink, remind her that it will make her have to go pee pee so that she knows to expect it after drinking liquids. Soon she will be doing it on her own.
You may have to wait on nighttime training. I did...a 20 month old child is not ready to go ptty alone at night. We used diapers until she resisted since "babies use diapers" and then went to Pullups. She is 3 now and wakes up and navigates her way to our room at night, so we are going to begin night training.