[stock pick tips] Stock price

Dear Readers,

I have discussed importance of average stock trading volume in my
last email. Now I would like to tell you more about two more
parameters that should be used in your stock screener process.

The price of any particular stock is very important value that
should be included into filters that are used for stock
screening. It looks obvious but it is not.

What price of stock will you prefer for your trade? Do you want
to trade only low priced stocks? Do you think that only stock
with low price offers good trading and investing opportunities?

No, it is mistake to concentrate only to lowest possible stock
price. The stocks under 5 USD are not good option for stock
trading and stock investing purposes. They are very risky.

Stocks priced lower than 5 and sometimes under 10 USD are
generally avoided by institutional investors. It means that these
low priced stocks are traded mostly by retails traders and
private investors. It offers possibility to manipulate stock
price a lot.

You can see that stock price of low priced stock shot up during
one hour after stock market open and then decline again during a
day. And then it stays without any activity for many months. Do
you know what a reason for this behavior is?

Such stocks are often propped by investors that react to hot tip
emails sent as a spam to plenty mailboxes. The spammers bought
such stock few days ago in very low price and now want to push
price up. And they often succeed. The amateur investors buy such
stock at higher price only to allow spammers to make profit on
this manipulation. Finally these amateur investors finish with
shares without any real value on their brokerage account.

So my tip for stock screening is to use minimal price level for
stock that should be considered as possible stock pick. You have
to use 5 USD as hard level. I personally recommend using 10 or 12
USD as optimal minimum price level for bullish stock picks.

If you plan to use also short sell strategies and you are looking
for stock that could decline in price, then I recommend using
higher value, 20 or 25 USD at least. This will find only stock
with good space for decline in price.

Stay tuned for your next email.

Very Respectfully,

Richard Koza
Private stock trader
https://app.getresponse.com/click.html?x=a62b&lc=BC3bE&mc=BR&s=0NyX5&y=n&

Powered by: https://app.getresponse.com/referral.html?x=a62b&u=BlK&y=K&
ATWEL International, s.r.o., Polikenska 2522, 19016, Prague 9, Czech Republic
To unsubscribe visit:
https://app.getresponse.com/me.html?x=a62b&m=UBBm&s=0NyX5&y=t&
To change your contact details visit:
https://app.getresponse.com/me.html?x=a62b&m=UBBm&s=0NyX5&y=t&