DAYTRADING Fundamentals Message Board

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Strategies & Market Trends : DAYTRADING Fundamentals

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To: Magnatizer who wrote (1298)	6/22/1999 11:51:00 PM
From: Richard Estes	Read Replies (2) of 18137

A high volume to float ratio. if you want stocks that move float is supply of stock, with low supply and heavy demand (volume) you get a data base of stocks moving double digit percentages moves in a day. A stock say IBM with a 1796m float trades 4m on average that is .2% turnover, a stock like MCOM trades .5m on a 7.6m float that is 6.6%. Mcom has 33 times the true volume. Today it turned over its float at 8.956M. look for ratio of 2.8% as a minimum. These stocks trade fast and move both ways. The volatility make them prime candidates for daytrading. But this is contarary to the "Accepted way" of picking only name stocks or stocks over $50. While a $10 stock moving one point returns the same $1000 on a 1000 shares as a stock costing $100 and moving a point. In one you put up $10,000, in the other $100,000. If you had bought 2000 shares of the $10 stock you would have doubled your profit with less exposure. How much volume do you need to buy and sell with ease? Do you want to play up against the institutions? No matter if fear reduces you to looking for 1/8s, they are there and more with these stocks. High percentage float ratios are not always lower priced stocks, most of the big "net" stocks have this trait. No one reject this until you tested it.

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