This is a note to myself, however y'all are most welcome to it as well. I need this up on here so I can keep coming back to it. My strategy for 2017 is to just trade LOW-FLOAT STOCKS, I might trade higher Float Stocks here and there too if the Set-Up is Good. As we have all seen in the past couple of weeks and months, LOW-FLOAT stocks can really RIP and RUN, when traded Strategically, it can bring you nice gains, it can also bite you in the ARSE too, as it is very VOLATILE.
What is LOW FLOAT STOCKS? : Stocks that are available to the Public for trading. Simply put,
CATALYST + LOW-FLOAT = HIGHER DEMAND and bigger RIPS and VOLATILITY.
HOW TO CREATE MY LOW-FLOAT WATCH LIST
Tools I will need :
1. FINVIZ
2. StockCharts.Com
3. Scanners (Trade Ideas, Equity Feed, Stocks To Trade)
Set my SCAN for LOW-FLOATS idealy below 25M, set price range between .50 and $5. If they're GAPPING-UP POST/PRE MARKET, figure out as to why they're up? Is it a Technical Chart Break-Out or a Catalyst? (eg. PR, Earnings, FDA Annoucements/Approvals, Contracts/Mergers/Agreements with Big Companies etc). Scoot over to FINVIZ and StockCharts.Com for further analysis of the Stock. Check on :
1. Float (FINVIZ)
2. Daily Chart (StockCharts.Com)
3. Analyze the Chart, is it a former runner, does it have a history of Spiking?.
NB
*Low-Float Stocks with really good Catalyst can run on MOMENTUM/EXPLOSIVE/PARABOLIC/SUPERNOVA moves
*Whereas Stocks that are up, due to Chart Technical Break-Out with no Catalyst don't usually run that much.
*Stocks that are up too much POST/PRE Market will usually sell-off at Market Open
*Whereas Stocks that are up a little can usually spike at Market Open.
*!00% Previous day Top Gainer can usually run the next day as well.
*Only focus on Stocks that are up with CREDIBILITY behind it like a News/PR.
Only trade QUALITY SET-UPS that look familiar eg. (Bull-Flag, Flat-Top, U-shape, Break-Outs, Wedge, Reversals, Pull-Backs 1&2, Dip-Buying, Break of the Open, Break of the Pre-Market High, Break of the 52 Week High. Flush/Wash-Out Bounce play 1&2. Recognize the Pattern/Set-Up, Attack it like a Sniper and hit the Bitch with size.
Huh!. Mny tnx...
Thanks for the quality post! Really helpful for newbie like me. $ETRM today is exactly what u say: low float, new news, and breakout at market open and it run to the moon. Should have focus on this kind of play too.
@trung1234 Exactly so was IDXG the past two days.
$MINE is going to spike big time, long it. GS got them as small cap 1st class.
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