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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade

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To: Ken Wolff who wrote (37)1/7/1998 1:07:00 AM
From: Ken Wolff  Read Replies (4) of 2120
 
Rule #3: STAY AWAY FROM LOW VOLUME STOCKS

Low volume stocks generally have larger spreads and move extremely fast on low volume. What goes up fast, will go down faster. If you are on the wrong side of a low volume stock trade, your losses can be excessive. My only exception is if I got a story several minutes before the market close, and I knew the story to be exceptional. Then I would do a market buy.

My advise is don't play with excessively volatile stocks and low volume stocks.

Ken
mtrader.com
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