Of course you know, I fully disagree with you. Price has nothing to do with value(what ever that is, I have never seen it measured) . Liquidity is not a small price issue. Suggest you do a study on all stocks with a 150,000 shares or more average for last 6 months. Now Chris deals with people mainly using other people's money - funds,Plans, and etc. What he buys or sells for them has little to do with making money in the market, from a personal perspective. When you enter their stocks especially the "investor", they can move you any way they want to.
You might be trading in such big chunks that you affect a market, but my 1-2000 shares won't move anything. There are bad stocks at every price level. Only difference is the houses or their big customers own the dinasours, they recommend them and build them up for distribution. The analyst earnings projections are wrong >75% of time. This is the main way they get you. When Oracle dropped there were 4 strong buy recs on it, What good did liquidity do for them then?
TA is the only way to trade any stock especially <$10. I would like someone to prove differently. I think that most people read too much Academia crap and are not watching price and volume.
Now, I am not pushing "story" stocks no matter what the price. There is alot of trash pushed on the net. But price does not make trash. I make it simple, only look at stocks that have EPS/RS>80 and float less than 50M in IBD with the stress on RS. |
