Registered User
Joined: 12/27/2005
Posts: 83
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Hi,
There aren't many posts about options on this site. There are a lot of posts about stocks that are less than $10 or less than $5 and some posts for higher stocks. What are people trading and what do you focus most of your efforts on and why?
I like the idea of trading a $3 stock and having it go up a $1 and capitalizing on that 33% gain vs. the 5% gain in the higher priced stocks.
Would you take a minute and tell me more about trading the less than $10 stocks? Why the focus on these stocks in this range? Are there specific criteria / rules for trading in this arena? And are there indicators that are better used here than for the higher volume higher priced stocks?
I've been watching the discussion for a bit and the Worden videos on strategy etc. I'm fairly new to trading (about 18 months). I generally trade stocks in the 13-100 range and I primarily focus on option spreads for those stocks. I generally use candles, CCI, patterns, ADX, Acc Dist, Implied Volatility, MA's 7, 30, 50, 200, Stoch, MACD in terms of indicators. And I'm learning about Worden's proprietary indicators. I also trade mutual funds in my retirement account.
Any comments would be appreciated.
Craig.
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Registered User
Joined: 3/21/2006
Posts: 4,308
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QUOTE (hicraig3) Hi,
I like the idea of trading a $3 stock and having it go up a $1 and capitalizing on that 33% gain vs. the 5% gain in the higher priced stocks.
Craig.
Thats why...
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Registered User
Joined: 3/21/2006
Posts: 4,308
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With some higher priced stocks, there are a lot of outstanding shares, in some cases in the Billions,
Certain indicators are less sensative or accurate because of this, it takes huge volume to move the price..
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Registered User
Joined: 12/8/2004
Posts: 1,301
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QUOTE (apsll) With some higher priced stocks, there are a lot of outstanding shares, in some cases in the Billions,
Certain indicators are less sensative or accurate because of this, it takes huge volume to move the price..
I hate misinformation. Indicators are MORE accurate with higher volume stocks.
Thats all, see you all next time.
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Registered User
Joined: 12/8/2004
Posts: 1,301
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QUOTE (hicraig3) Hi,
There aren't many posts about options on this site. There are a lot of posts about stocks that are less than $10 or less than $5 and some posts for higher stocks. What are people trading and what do you focus most of your efforts on and why?
Craig.
Rookies trade low priced stocks in the hopes of hitting it big. They never realize the way to make money is to be consistent and pick good stocks, with institutional support, and good technicals. That's not the answer you wanted to hear, but it's the truth.
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Registered User
Joined: 1/28/2005
Posts: 6,049
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I think this has to do with human nature and the nature of risk.
Most starting traders start with small account balances. Therefore
they "feel" they can better use of their account by focusing
on low priced stocks.
(my first stock account was $2000 and the first stock I bought
was 50 cents a share)
Its extremely difficult for a starting trader a few years ago to buy
4 or 5 shares of GOOG. (even though it may have given them a
better return than what they actually did)
Most people can walk into a casino and place a $200 bet on
a blackjack hand. (should they lose they are probably not
broke)
I don't think you would find too many that would feel the same
about a $100,000 or $200,000 bet.
Realize the nature of wealth being what it is. Someone with
a million dollars can earn $50,000 in a "stogy" money market
account. The general rule of thumb is that as volatility increases
so does risk.
So I think because of the fact that account sizes grow as experience
grows (at least they should) and the fact that more money is at
risk. Almost every single trader gravitates toward higher priced
higher quality stocks.(as they gain experience) No one wants
to put their IRA in a $1 stock with poor fundamentals.
I think what is much more important than what you do. Is understanding
the pros and cons of what you do. A good trader should be able to make
money in anything. A poor trader will go broke with blue-chips.
All that being said. I think traders should focus on the strongest stocks
they can find (for longs) and the weakest.(for shorts) There is no reason
buying a quality company should be something boring. They should
also understand the nature of strong sectors and sector rotation.
Thanks
diceman
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Registered User
Joined: 1/12/2006
Posts: 296
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HNC is correct and glad to have you back HNC!!!!!
Just for the record, I'd rather have 5% on a $30 stock ($1.50) than 33% on a $3 stock ($1). I never did learn the "new math".
Assuming your method of entry (very important) is used ideally (near a swing bottom for example) for both of above stocks, I would choose the $30 stock for additional reasons beyond the obvious math.
But, whatever entry method is used for any stock price range, the most important trading aspects are your defined money mgt. and exit strategy.
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Registered User
Joined: 12/8/2004
Posts: 1,301
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Well I know I have been rude, but there are some people that just will never get it when it comes to low priced stocks.
I wish everyone who buys stocks under 5.00 on a regular basis would consider the following.
Stocks under 5.00 typically have low institutional support. Institutional support is how you make money. We all don't have the money that institutions have, but we do have one advantage, and that is our ability to get in and out of stocks quickly. Institutions take a long time in developing a position and they take a long time to unwind their position. The astute trader will no when that is occuring.
When you see a volume spike in an under 5.00 stock how do you know what caused it? If you see a stock that normally trades 100,000 shares or less and then see 200,000 to 500,000 all of a sudden everyone thinks it has institutional support. It may or may not be institutional support. When you see a volume spike in a highly traded stock you KNOW it is institutional buying or selling.
If I wanted to personally manipulate a stock how could I do it? Well I would pick a low priced stock that trades 25000 shares a day and give it a volume spike. I would do this for a couple of days and let the stock rise. Momentum traders would then enter the stock and take it higher. Short term trend traders would then buy the stock from the momentum players, and they would be the some of the ones left holding the bag. The stock would dip and then some swing traders buying the dip will buy some of the stock from the short term holders. They will lose as well, but at least they came in at a good entry point and they won't lose much. Nevertheless they will lose and everyone will wonder why the stock took such a big hit.
It took a big hit, not because of any news, but because of people trying to draw in suckers. If you look around the room and you don't see another sucker then chances are you are the sucker.
This can never happen in high volume stocks. NEVER. Every large institutional move is TELEGRAPHED to the individual trader and since we can get in and out quicker WE HAVE THE ADVANTAGE. It's the only advantage we do have and if you fail to use it you're making a big mistake.
I no longer trade stocks with less than 750,000 shares traded daily. I also only trade a basket of 100 of the highest volume, best of breed stocks. I know the stock movements of these 100 stocks like the back of my hand. As the years go by I will know them even more. I now have developed systems of when to buy and sell these stocks that have been backtested successfully over all types of market conditions. I wait for my entry signals, I set my stops, I determine my target, and off I go. No emotions. Boring but very profitable.
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Registered User
Joined: 12/7/2004
Posts: 393
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Very good advice HaveNoC.
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Registered User
Joined: 10/26/2005
Posts: 238
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Vary well said HNC, Dice's comments are right on the money as well. That is where the problem is... new traders telling other new traders to buy Cheap stocks. Most new traders with small starting capitol will wash out before they learn to look for quality stocks and consistant gains. HNC is correct about Institutional support... I have been watch AOB for the last week, Monday I seen a change in the time and sales lots of big block trades started coming in, so I jumped in with them. last to days were great. I'll jump out at first sign of trouble.( I trade short term) AB
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Registered User
Joined: 9/21/2005
Posts: 566
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HNC, what do you recommend on learning to develop better trading systms, books, tapes, courses...?
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Registered User
Joined: 3/21/2006
Posts: 4,308
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HNC: I am sure that you are very familiar with the back of your hand, but aside from that if you look at BOP with the big blue chips (very high volume and very large outstanding shares)you will see that it is almost non-existant, according to you these are the only stocks that have (Heavy) institutional involvment, why is BOP so light? Look at INTC for example (one of all your favorites) all waiting for it to chug along and hope it will rise 5% Kokoda, as far as I know the same Math is being used today as when I was in school
Example 1: $10,000 / $30.00 = 333shares..
$30.00 + 5% = $31.50... $31.50 * 333shares = $10,489.50
Example 2: $10,000 / $3.00 = 3,333shares
$3.00 + 33% =$3.99... $3.99 * 3,333shares = $13,298.67
In example 1: The realized gains are $489.50
In example 2: The realized gains are $3,298.67
HNC: The scenario you painted in your Manipulation anecdote is fairly accurate to what happens in the market, but not to all low priced trading scenarios..
The bargain hunters do not just see a spike in volume and jump on it like a pack of wild dogs (I am sure that some inexperienced traders might fall for that, we all did at one time)
Why not give credit to the fact that there are some successful traders who (through time and experience) have learned to read the indicators and can choose four or five stocks that look like they might be ready for a move and keep an eye on them and when they do start to move you put your money down (always ready to get out if the trade goes the other way) and If such a trader is successful in doing this then who are any of you to judge them.
This forum is not for the Bottom feeders club, and it is not for the blue chip club, it is for all to use and exchange ideas and (opinions) and technics. It is up to the people reading this forum to decide what information is usefull to them.
My original problem with you was just that I found it odd that you would take the time to analize a host of (penny stocks), ask for feedback on them, and then condem the practice of trading them..
And Diceman I am not defending my trading style, because as I have stated many times I trade stocks $5.00 and $60.00 Most times I like the bargans in the lower priced stocks. And you are correct I do know what my results are.
Just trade your style and let others trade there stles, evryone has there own way of doing things. If you are increasing your portfolio then there is no right way or wrong way...
Apsll...
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Just one last entry here and I will stop..
I do not have a problem with investing in value/quality stocks, I never have.
I am in a situation here at work where I can monitor the market from open to close. I can enter and exit trades very quickly and have a live ticker to monitor my positions, (via E-Trade)
I just love to trade and research (Telechart) it is my hoby and my retirement fund. I am in my early fourties and plan to retire within 10 years. I am on pace to do that maybee even sooner...
I have no beef with any of you..I just belive in what Diceman himself has said..
If you find an indicator or a technique that will bring you higher profits than what you were doing before, then throw every thing else out the window.. (now this is not his exact quote) but that is what I got from his words.. Well in my opinion I have found these things (and they have been working 8 out of every 10 times)
There is no way to that I can convince you of my overall success (because you belive so strongly that I am a rookie that has no idea what he is talking about)
From now on I will not elaborate on my technique or indicators (so as not to mis-inform the new traders to this forum)
I will only post a stock that I feel is ready to move. People can then look at Telechart and make up their own minds..
Sorry if I offended any one
Apsll...
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Registered User
Joined: 12/8/2004
Posts: 1,301
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QUOTE (jcfla7) HNC, what do you recommend on learning to develop better trading systms, books, tapes, courses...?
After you read hundreds of books you will come to realize that there really isn't anything to learn. This took me a long time to understand. What is most important is to realize that there is no holy grail and all you can do is test your own theories and see if your methods make sense and would have been profitable in the past.
The key to successful investing in backtesting what you think might work in all types of markets. If you are a simple moving average trader using macd you need to test this theory and determine its success rate. You need to know which moving average crossover systems work better than others. As an example, a 20ma cross over of the 50 ma as a buy entry is more successful than any other moving average crossover you can develop. Once you learn this you can then find and test the optimum exit point. You can go years thinking you are successful and intelligent, but you don't know for sure. Remember the adage "don't confuse brains with a bull market".
Think outside the box. What are the probabilities a stock in an uptrend will have a 3-5 day pullback? What are the probabilities after that pullback the stock will continue with the previous trend? You have to find the answers to questions like this. If you don't know you're shooting in the dark, and although one can be successful you certainly don't want to find out after years of successful trading that is was pure random luck.
Your goal is to buy weakness and sell into strength, but you buy weakness at its lowest risk point so if you are wrong there is little loss. Of course you have to add money management to the scenario because even a poor system will give somewhat good results with proper money management.
Good luck on your journey.
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Registered User
Joined: 1/12/2006
Posts: 296
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Since we cannot predict with any great certainty how the stock market or an individual stock will actually perform, I don't know that the $3 stock will acieve a 33% gain while the $30 stock will only achieve a %5 gain. Should one front-load their expectations to support their own rationale?
Let's be fair. Doesn't the $30 stock have an equal chance to post a %33 gain and the $3 stock a 5% gain? If so, run the numbers.
On an equal weighted $ basis to each stock, with the same % gain applied to each, the net gain will be the same. On a per share basis, yes it costs 10 times as much, but it is a 50% gain (1.50 vs $1).
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Registered User
Joined: 12/8/2004
Posts: 1,301
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QUOTE (apsll) HNC: I am sure that you are very familiar with the back of your hand, but aside from that if you look at BOP with the big blue chips (very high volume and very large outstanding shares)you will see that it is almost non-existant, according to you these are the only stocks that have (Heavy) institutional involvment, why is BOP so light? Look at INTC for example (one of all your favorites) all waiting for it to chug along and hope it will rise 5% Kokoda, as far as I know the same Math is being used today as when I was in school
Example 1: $10,000 / $30.00 = 333shares..
$30.00 + 5% = $31.50... $31.50 * 333shares = $10,489.50
Example 2: $10,000 / $3.00 = 3,333shares
$3.00 + 33% =$3.99... $3.99 * 3,333shares = $13,298.67
In example 1: The realized gains are $489.50
In example 2: The realized gains are $3,298.67
Apsll...
Please don't try to justify pure ignorance. The larger the statistical sample, the more accurate the results. IN THIS CASE THE STATISTICAL SAMPLE IS VOLUME. All indicators give truer readings with a greater sample size.
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Registered User
Joined: 12/8/2004
Posts: 1,301
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QUOTE (kokoda) Since we cannot predict with any great certainty how the stock market or an individual stock will actually perform, I don't know that the $3 stock will acieve a 33% gain while the $30 stock will only achieve a %5 gain. Should one front-load their expectations to support their own rationale?
Let's be fair. Doesn't the $30 stock have an equal chance to post a %33 gain and the $3 stock a 5% gain? If so, run the numbers.
On an equal weighted $ basis to each stock, with the same % gain applied to each, the net gain will be the same. On a per share basis, yes it costs 10 times as much, but it is a 50% gain (1.50 vs $1).
Kokada, if you backtest any successful system you will find that stocks under 5 dollars will give poorer results than any other group. Stocks under 3.00 are even worse.
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Registered User
Joined: 3/21/2006
Posts: 4,308
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HNC: With all the facts that you have uncovered about the stock market, I am suprised that you are not a multi-millionare by now...
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Wher can I purchase your book??
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Registered User
Joined: 12/8/2004
Posts: 1,301
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QUOTE (apsll) HNC: With all the facts that you have uncovered about the stock market, I am suprised that you are not a multi-millionare by now...
What makes you think I'm not?
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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apsll,
I am not clear how you last two comments add to this discussion. If you have an issue with anything someone has said here, please share your thoughts. Sardonic comments are not constructive and these boards are meant for constructive discussions.
- Craig
Here to Help!
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Point taken Craig, I do just have a pearsonal problem with the tone that HNC uses in his dialog, And I appologize for my humor at his expense..
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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No stress, I did not want this thread to devolve into something I had to lock.
- Craig
Here to Help!
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Registered User
Joined: 12/8/2004
Posts: 1,301
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I apologize for my tone but I get pretty upset at a statement like this
Certain indicators are less sensative or accurate because of this
If an indicators validity is lessoned by sample size THEN THE INDICATOR HAS NO VALIDITY WHATSOEVER. There is no statistical or market knowledge that is needed to come up with that conclusion. It is in essence saying I make a lot of money in the market if you only look at a few of my trades.
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Registered User
Joined: 3/21/2006
Posts: 4,308
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I am not starting this up again, First of all I did not say anything close to the bable that you are accusing me of. In my Techni-Trader training course they teach that BOB is not as efective with Blue Chip stocks because of the large outstanding shares. And that most Large Fund managers by law have to own a certain ammount of them according to charter bylaws. But they do not trade them.. The most popular price they trade in this market is $11.00 - $20.00 These people are profestional traders and I have decided to trust there opinions over yours. I am making profits by folowing their teachings.. Why do you have such a problem with that..
Will you please act like the millionare that you claim to be..
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Registered User
Joined: 12/8/2004
Posts: 1,301
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You said certain market indicators are not accurate due to market cap and/or volume. I stand by my statement, and any developer of an indicator will dispute what you are saying.
Personally, I don't care who takes my advice. I do care when someone tells soneone who doesn't know any better that indicators lose accuracy with volume or market cap. It's simply a ludicrous statement. Many people come on this board to learn and get help. That is not what I call help, maybe that's the best you can do, but it certainly in the questioner's best interest.
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Registered User
Joined: 12/8/2004
Posts: 1,301
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You said certain market indicators are not accurate due to market cap and/or volume. I stand by my statement, and any developer of an indicator will dispute what you are saying.
Personally, I don't care who takes my advice. I do care when someone tells soneone who doesn't know any better that indicators lose accuracy with volume or market cap. It's simply a ludicrous statement. Many people come on this board to learn and get help. That is not what I call help, maybe that's the best you can do, but it certainly in the questioner's best interest.
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Registered User
Joined: 12/8/2004
Posts: 1,301
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correction
You said certain market indicators are not accurate due to market cap and/or volume. I stand by my statement, and any developer of an indicator will dispute what you are saying.
Personally, I don't care who takes my advice. I do care when someone tells soneone who doesn't know any better that indicators lose accuracy with volume or market cap. It's simply a ludicrous statement. Many people come on this board to learn and get help. That is not what I call help, maybe that's the best you can do, but it certainly is not in the questioner's best interest.
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Registered User
Joined: 3/21/2006
Posts: 4,308
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"(With some higher priced stocks, there are a lot of outstanding shares, in some cases in the Billions,
Certain indicators are less sensative or accurate because of this, it takes huge volume to move the price)"
I am sorry if I did not state this more clearly...
In the teachings of Techni-Trader they state that BOP is not as accurate an indicator with the Blue Chip stocks due to the large amount of outstanding shares some times in the billions, and that because of this it takes very large volume to move the stock....
I am not at the mercy of your interpretation of what is or is not a ludicrous statement, these statments are from profesional traders and I will quote them when I feel the need to.
People will read your opinons on the market and they will read everyone elses who cares to deposit them. and they will decide for themselves what advice to covet and which to discard, it is not up to you to make that decission for them..
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Registered User
Joined: 12/8/2004
Posts: 1,301
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QUOTE (apsll) "(With some higher priced stocks, there are a lot of outstanding shares, in some cases in the Billions,
Certain indicators are less sensative or accurate because of this, it takes huge volume to move the price)"
I am sorry if I did not state this more clearly...
In the teachings of Techni-Trader they state that BOP is not as accurate an indicator with the Blue Chip stocks due to the large amount of outstanding shares some times in the billions, and that because of this it takes very large volume to move the stock....
I am not at the mercy of your interpretation of what is or is not a ludicrous statement, these statments are from profesional traders and I will quote them when I feel the need to.
People will read your opinons on the market and they will read everyone elses who cares to deposit them. and they will decide for themselves what advice to covet and which to discard, it is not up to you to make that decission for them..
Instead of using "they" as an excuse for misinformation, let's use our minds. Do most indicators ever take market cap into consideration? Do indicators discern a way to have knowledge as to whether a stock is a blue chip company or not? Is less information more valuable than most or all of the information? If I was taking a course and told me their indicators work better with less information I would certainly ask for my money back.
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Registered User
Joined: 9/22/2005
Posts: 849
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Apsll and HaveNoCents, You both make valid points while looking at the problem from differing view points. Why don’t you quit snapping at each other and get back to the original issue.
In defense of the lower price stocks by a relative new trader, I offer the following as justification for concentrating on lower priced stocks.
I traded on paper for about a year while attempting to develop my style. My assets are limited so, in order to spread the risk, I invest five hundred dollars in any position, realizing that that this makes commissions cut into profits significantly.
At the present time I have seven stocks ranging from $1.25 to $6.98 per share. Four of them are showing profits of 1.70 to 27.63 percent and three are showing losses of 0.35 to 4.89 percent. Overall, the profit is 7.3 percent. I have held them an average of thirty nine days.
With proper attention given to trailing stops (which I learned by paying attention to comments by diceman. kokoda, haveocents, fptry, apsll, and others) I can limit the losses to no more than about five percent.
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Registered User
Joined: 1/12/2006
Posts: 296
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Within a space of 5 years time, everyones perception of the market/stocks and trading will change dramatically. Therefore, all comments should be considered, whether or not one agrees with specific statements. In 5 years time, one could be using the "suggestions" currently disdained.
For myself, I do not give opinions that someone wants to hear. There are personalities that take a negative attitude to an opposing position. This is unfortunate, but it is the real world.
Be appreciative of all comments.
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Thank you Kokoda & Bcraig73450 for severing this insane dialog..
I should have been focusing on how well EVOL is doing and other guessions that were asked of me by Zag about IFON..
I say from now on (including me) if you do not agree with someone elses point of view, then just let it go.
Tobydad said it best "you are only wrong if you do not follow your own rules"
Good trading to every one..
Apsll...
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Registered User
Joined: 12/8/2004
Posts: 1,301
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I agree kokoda. Markets and methods are forever evolving. What works today may not work tomorrow. This is why testing is so important. It lets you know immediately without risking your money what systems give you better odds than others, and more importantly, what systems no longer work.
I know the past is no guarantee of future results but all we have is the past. Every indicator is based on the past. The price and volume of a stock is in the past 1 second after you see it. This is all we have to work with. One thing I will never change however, is believing in an indicator that only works with lessor sampling.
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Registered User
Joined: 12/8/2004
Posts: 1,301
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QUOTE (apsll) I say from now on (including me) if you do not agree with someone elses point of view, then just let it go. Tobydad said it best "you are only wrong if you do not follow your own rules" Good trading to every one.. Apsll...<img src="/training/images/emoticons/smile027.gif"/>
Knowledge comes from disagreement.
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Registered User
Joined: 10/23/2006
Posts: 9
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Apsll and HaveNoCents and bcraig73450,
I appreciate the discussion of ideas, especially if you can keep it on the facts and off the personal. My situation is closer to bcraig73450's in that I have a limited amount of $ that is truly discretionary right now.
I'm not a complete newbie, I traded very successfullly 15+ yrs ago using Telechart and others, but the trading world has changed a lot since then, and my successful strategies then probably need modification for todays market and my lesser starting $. I had a lot more funds to trade with then, that gotten taken by traveling and then a severe health crisis. Its taken many years to get back on my feet and have truly discretionary $ again.
I had a stable of $20-$80 stocks I traded regularly (daily to weekly), strategies I would test and backtest as well as could be done back then  and I did quite well. When I had it working quite well, I did lose interest. I thought I had enough $ socked away for quite a few years and adding to it had lost its appeal. The game and figuring it out appealed to me more than just churning out the $, that I learned about myself. So I would make as much as I needed to live for the month beginning from the 1st, and then go play the rest of the month. Then I was out of the country a lot for awhile and then lost much of my nest egg to health crisis and its aftermath.
In hindsight, maybe I should have spent the rest of the month after I made my budget, to explore new ideas, but I was burned out I guess and thought I had enough to last a long time. For awhile now, I've been wanting to get back into it, so here I am, in a different market with a small trading fund this time and much more complex tools.
Keep up the great discussions! Just keep it on the stocks and strategies if possible. I don't care "who" says or teaches any idea. I care about how clearly the idea is explained and the rationale and supporting facts. So-and-so says is not a supporting fact to me. Yes, they have experience and successful track record perhaps, but the idea holds up to scrutiny independent of its fans or not. So please explain it in content and context only, not what "rock star" promotes it.
The examples given earlier in this thread with actual dollar and trade volume and results are a great starting point to a discussion of strategy. We can all agree on those facts and still arrive at different conclusions and adopt the one that works for us in our individual circumstances. It like we can agree we need 2000 calories per day but some of us prefer 3 hearty meals and some of us graze and we do what works for us. But within that variation, we can still factually debate the best combination of foods to give us our required nutrients.
Given that my trading funds this time around are closer to bcraig73450's, and the new tools border on info overload, I'm wondering how you all would tailor your thoughts to starting there this time around.
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Registered User
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Posts: 4,308
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Sorry llb101 that the thread you started turned so ugly but it is my opinion that in the stock market there are no definitive facts, if there were (millionaires)we would all be..
There are however certain truths and for those I most respect the opinion of Diceman. He appears to be the one we all turn to for the calm level aproach..
You seem to have made the deccission that low price stocks is the way you want to invest your dollars right now, and I would like to tell you how I have had success, but we both know that many posts would follow trying to discredit the whole notion of trading any stocks under $13.00 a share.
My best advice to you is to appeal to Diceman for your initial quidance, and watch all the totorials you can and paper trade at the begining...
Good luck to you..
Apsll...
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Correction: the thread that hicraig3 started
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Registered User
Joined: 12/8/2004
Posts: 1,301
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QUOTE (apsll) You seem to have made the deccission that low price stocks is the way you want to invest your dollars right now, and I would like to tell you how I have had success, but we both know that many posts would follow trying to discredit the whole notion of trading any stocks under $13.00 a share.
Apsll...
I don't believe I EVER mentioned my view on stocks above 5.00. I mentioned stocks below 5 dollars as high risk stocks. I'm sorry, but they are high risk stocks. You may think that is the way to high profits but you would be the only one in the world who has done it. Trading high risk stocks with small limited funds is not a recipe for success.
You trade high risk stocks for speculation and it should never reach more than about 5% of your portfolio. But hey, I would certainly not want anyone to do anything they don't agree with.
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Registered User
Joined: 1/28/2005
Posts: 6,049
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llb101 and bcraig73450
One of the mistakes I think you are making is you do not
have to trade stocks at all. A whole new world of ETF
trading has opened up for the small investor.
With much more limited funds you can participate in Gold
rallies, the previous oil sector surge and so on.
You can use ETF's to build you account until you have
enough for a diversified stock portfolio.
I would recommend relative strength and focusing on the strongest
funds.
There is no reason because there are "complex" systems that you have
to use them.
I seen very successful results from systems that go into the top
ETF's based on performance 100 days( 4 or 5 ETF's) . You stay in until it falls
below a hundred day moving average. Then you sort again and enter
the new top ETF based on performance for 100 days.
You are basically trying to keep you money focused on the
strongest sectors.
Trading is only as complex as you make it.
As always investigate don't just listen to what I say. You
must do what you are comfortable with.
Thanks
diceman
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