Sorry, should have paid more attention to lcav not being a BB. However, I guess I usually group the lower price stocks into a certain catagory along with BB's, becouse thats the type of investors/traders they seem to attract. I do use TA extensivly on mid to large cap stocks, as they usually attract deep pockets as investors, and price patterns are much more adaptable to TA.
For small price stocks, I usually resort to simple chart reading. A rise in volume and price, strong end of day buying, and the number of trades per the day's volume. I like to see alot of people buying, instead of only a few large buys. Accumulation over a couple of weeks, to a couple of months, and I look for news. However, news doesn't mean much, nor does the activity on stock forums mean much either. I have found that some of my best trades come from stocks that nobody has heard much news from, and nobody is talking, or hyping about. Thats not a rule, but I'm not afraid to throw some money at a stock, if the volume, and price movements are attractive, without news.
These lower price stocks usually are a in a world all their own, but I've been able to be quite succesfull over the past couple of months I've been trading them. Good luck, and happy hunting! |
