Hi Fred and All :
New to the thread - I have a few comments :
BBs are REALLY tough to make consistent money on unless you can babysit them. It may be more productive to look at smaller stocks that have a decent price base, (little downside) have good prospects and have a bit of an uptrend.
Learn to read charts, and learn to understand price resistance
points. I took a quick look at HMG Worldwide (HMGC) over at
clearstation.com
and while it has a nice uptrend and seems to have good volume,
you can see that the uptrend is softening quite a bit as it
approaches the $5.00 mark. If the company is solid, it will often
bounce a few times and finally break the price barrier, as ISLE
did today :
clearstation.com
--- Others will become rangebound and go sideways for an extended
period of time. People may get bored with the lack of movement,
and begin selling, so they'll go down. (CYRK)
More on BB stocks : There are some that are clearly stong enough
and have enough upside potential that they cannot be ignored.
One that comes to mind is Starnet (SNMM). I've followed this
one for months and fortunately or unfortunately have finally gotten
in after it has run nicely several times. Given the fact that a
full Nasdaq listing is likely and the wide following this stock
has, I've placed a large portion of my holdings in this one and
fully expect the downside to be no greater than $9 at this point,
while the upside is considerable. Find stocks like this!
Another that comes to mind is ZSUN, tho' a little pricey right
now. The lower-priced BBs are commonly stocks that will produce
only frustration, if you are not able to watch and trade them
properly.
Find stocks that have had runs in the past, wait for a solid
price base to form and be patient with them. TRAC, SKYM and many others.
SELL them when they reach your price target.
As others have mentioned, you MUST pay attention to commissions
as a portion of the cost of your trade. Something I find helpful
and use often is the "Stock Spread Calculator", available for free
from :
wheatworks.com
Most of the time, I'll do a quick calc before entering a trade
since many of my trades are short-term, and it's possible that
the likely upside is not adequate to make much beyond break-even.
Finally, one tool that I've found very useful is Jeff Cooper's
book : "The Five Day Momentum Method" -- If you read the
text literally, you only buy into stocks that have share prices
of $50 or greater, I've found the method to be very useful on
select smaller stocks; these are usually stocks in the "discovery
phase". People have begun buying into these stocks, and they are
beginning to take small runups. Watching this type of stock
closely has enabled me to find TRAC at less than $6, NTPA at less
than $8 and TFSM at less than $30. These are stocks that had
significant volatility at lower levels and finally broke out BIG.
I hope this information will be useful to you; please feel
free to ask questions if you have them.
Best,
Pana |
