Here is the ILMN chart mentioned in my previous post:
And here is a "spot the trade"...hint, watch as it breaks above the Fibonacci extension:
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Tags:
trader-x, stocks, fibonacci, trading, ilmn, cyd
The Psychology of Handling Large Drawdowns
6 days ago
5 comments:
Cheap, cheap. I generally don't like to trade anything bewlow $20-30
bl - why? Why would you not trade a high volume, $5-$10 stock? To eliminate that from your watchlist is just crazy, imo.
If it is easy to get into and out of, you can take a larger number of shares and have a higher % gain. I will take high volume $5-$10 stocks (even $2-$5 stocks not to mention $10-$20 stocks) over more expensive stocks any day of the week.
The charts are the same, the patterns are the same, the movement is the same...I just don't understand your comment at all.
Tom C.
I have to agree with Tom C. I can understand not wanting to trade something sub 1 dollar. But I would never not trade something below 20 because it is "cheap".
As Tom C. pointed out, the percentage gain opportunity on lower price, high volume stocks usually makes them great trades. Why would you pass on something below $20? If the reasons you trade them are the same (just take off the price axis and you should not be able to tell a $5 chart from a $50 chart), why would you penalize yourself?
I look for setups in stocks below $20 before I look for them in stocks above $20.
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