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Strategies & Market Trends : Pitbull Investing Strategies

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To: John Langston who wrote (43)5/6/1997 2:34:00 AM
From: Ralph Garcia   of 789
 
Hi John,

On page 14 of the Pitbull Investor, Ford suggests "ignore stocks trading below 50K to 100K a day. Since my attempt to validate does not preclude stocks of greater volume, 40K just allows for a greater selection. Since my model is using 2 to 300 shares per position or less than 1% of daily trading at 40K, I felt it would not be that important. Do you think this is a mistake? Any experienced traders wish to comment?

The average volume used in the January scan is well over 100K. It seems that the merit ranking, the 8% breakout limit and the 3 week base keeps out the low volume selections.

Ralph
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