$2 to $10 range, Speculating Jim Cramer Style as seen on CNBC
Jim Cramer mentioned tips on speculation on the Mad Money show on CNBC
How to find the best opportunities.
First rule stay away from penny stocks, companies with no earnings. Stay away from stocks trading on the OTC BB & Pink Sheets markets.
Cramer emphasized that speculation must be done only with money that won't be missed if it's lost, never money in a retirement account. Speculative stocks grow very quickly, but they can die very quickly as well, meaning investors must keep an eye on what he called the life cycle of the company.
To spot a stock worth taking a chance on, investors should speculate only on:
The $2 to $10 range stocks
Companies with solid fundamentals
Must have good Sales
Sound balance sheet
Good unique product
Small float
Buy the best of breed
A small float means the stock is subject to potentially big moves if only one large institutional investor starts buying.
When to sell? Watch the volume. When the volume is spiking take profits.
Crucially, he pointed out that bad speculators are prone to certain bad habits. Among them are selling too soon.
Don’t hold a position that keeps going down.
Don’t believe the hype.
Don’t buy the worst company in a good sector.
Don’t speculate on takeovers.
He mentioned a good place to get tips, in IBD Investor Business Daily.
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This board was started knowing that many speculators watched the show and are now looking for ideas, like myself.
So PLEASE post your $2 to $10 speculating picks qualifying to taking a chance on.
Must have most of the following:
Small float, good sales, good product, solid fundamentals, sound balance sheet.
Remember speculating comes with many risks & you could lose most or all your speculating money. So you must do your research & make your own decisions.
A recent pick that I had qualified NASDAQ: DAVE that I picked up for $9.90 & sold most for $12.35 taking profits, the rest are like free shares of DAVE I own! DAVE went up because of great earnings. |
