DAYTRADING Fundamentals Message Board

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Strategies & Market Trends : DAYTRADING Fundamentals

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To: SteveJerseyShore who wrote (364)	6/9/1999 12:27:00 PM
From: Dave O.	Read Replies (2) of 18137

< Seems to me, trading stocks under $10-15 per share is looking for trouble. Too much volatility. > Too much volatility on lower priced stocks???? I don't see that at all. Rather, I find trading stocks in that range provides decent opportunity. Depends in part on ones daily goals. But to trade 1000 shares of a lower priced stock ($7 -$10) and make 1/8 or 3 teenies offers a couple potential advantages over higher priced and more volatile stocks. (1) you don't have a lot of volatility and are not as easily whipsawed out (2) buy at the bid or split the bid/ask (3) offer it out at the ask when it hits your target. You're not going to see low priced stocks move 1-2 points intra-day very often. Thus, they don't present "big" profit opportunites but they often are a low(er) risk trade and limit a trader from potential major losses. And making the consistent $75 to $100 per trade adds up. The home runs are nice but singles add up too. Dave

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