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Strategies & Market Trends : Strictly Buy and Sell Set Ups -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (11767)	3/30/2007 3:42:02 AM
From: bumblin bob	Read Replies (1) \| Respond to of 13449

Thanks! If it wouldn't be too much trouble, I'd like your feedback on my reasoning behind this buy. A little background: My most successful trades seem to be in the $4-$5 area. The closer to $5 the better. I usually buy new 52 week highs, B/O from consolidation (like BPA) or recoveries after bad news or bad overall market conditions. I'm partial to the under $5 group because of the explosive moves, but the $4-$5 ones have proven more predictable (and therefore more profitable). 10% is my usual target on a trade. Actual profit varies , of course, but 10% is the initial target. I have convinced myself that the $4-$5 plays are better because once they cross $5 the institutional money is able (allowed) to buy them. They may have thier eye on a company and want to buy it, but because of the price they are not able. Once it hits $5 they are able and jump in. Sort of like an addition to an index that a fund follows. While I have noticed nice gains in the $10, $15 and $20 area, none of them seem as good (consistent) as the $5 area. I have no concrete evidence that this is the case, nor have I run across anyone explaining it as a strategy, so I may be seeing what I want to see here, but I thought that you might have run across this somewhere in your research or thought about it while trading. Any thoughts from you or the other posters would be appreciated.