In answer to your Question: If I have $10,000 to invest and I buy a stock selling for $20, I
can only own 500 shares. If I use that $10,000 and buy a stock priced at $1.00, I can own
10,000
shares. If the $1.00 stock moves .25 cents, my profit is $2,500. The $20 stock must move $5.00
per share to make the exact same profit. The smaller stocks are more volatile , thus providing
trading opportunities, usually in a shorter time frame which also provides more opportunity to turn
the investor's cash...
Good Stock Selection is a MUST and is the reason I personally ONLY buy a stock selling at or
near it's 52 week low. Of course there are more criteria to this selection process.
I created a Home Page just to help folks understand a strategy which completely changed my
personal financial status and I only started with $7,000. Without using this strategy
with that $7,000 and if I had purchased higher priced stocks, I do not believe I would be
anywhere close to the success achieved
A lot of what I wrote in my Home Page is elementary, written largely in part, for folks like I once
was, an investor with a small amount of capital looking to increase that capital as quickly and often
as possible...
Here is that link if your interested.
members.wbs.net
Regards,
Malcolm |
