The Ambitious Trader: Stocks, Trading, Investing..My Ambitions as a Trader and Investor

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Monday, June 04, 2007

Trade Journal

New Buys: DAVE, EBIX, KTEC

Added to: PLPC, VSEC

posted by Nick M. @ 10:45 AM

4 Comments:

At 5:55 PM , Blogger Mateo said...

What do you think about low priced stock; below $10 for example. Any special strategy when dealing with these?

 
At 9:56 AM , Blogger Nick M. said...

I like low priced stocks. But becareful playing them as they a majority of them are of crappy quality (thats why they are trading under 10). When playing low priced issues, look for companies that are showing strong earnings growth, quarter after quarter. Also look for stocks that are setting up technically stong charts (at 52 wk highs, under accumulation, increased volume, etc). Always know that out of hundreds of low priced stocks, only a handful are worth holding onto as they will produced the biggest gains. I have seen stocks like EPHC, JSDA, DXPE, GROW and others go from 5 and beyond. Those kinds of stocks were exceptional as they had great sales growth and earnings. Low floats also help as well. You may want to check out PHC. I like this stock because it is showing good earnings growth. If it can keep it up quarter after quarter, it may be able to greatly appreciate in value.

 
At 10:18 PM , Blogger Mateo said...

I was thinking of these as short-term buys, for only a few days or so because, as you said, they are not strong companies. A few that I've been looking at are IMGN, FTGX, and TIXC, which have performed well this week. If you can catch these low priced stocks right before a big gain you can make a decent profit on volume of shares even if the price gain is less than a dollar. I think using bollinger bands and rate of change (ROC) can help you predict these spikes, and the risk is smaller since you don't plan on holding onto them long (and if a stock doesn't spike as expected, at the very least it probably won't go in the opposite direction).

Thanks for the tip on PHC.

 
At 1:16 AM , Blogger Nick M. said...

I like TIXC. Even though its an OTC stock, the chart is looking technically strong and the stock is very close to its 50 day MA, which gives you a great entry on it. FTGX looks like it is using the 200 day MA as support for now. You may want to wait on this one until it can clear the 50 day MA and estasblish a stronger pattern. IMGN looks pretty good. If you want to initiate a position in IMGN, try to grab some shares when it dips down to an intra-day low. It looks like it has a habit of doing this and this will help you get in at a new price. Out of all the stocks you mentioned, I like TIXC the best, IMGN second and FTGX third. Of course, these are just my opinions.
Also, good idea on using bollinger bands and ROC to time your entry. I also try to use tools such as those but I keep coming back to simpler stuff like the moving averages, RS, and money flow. The most important tool at your disposal is experience and studying the charts of past winners. Once you examine enough charts of stocks that did well in the past, you will be able to instantly spot those same chart setups and patterns in new stocks that are getting ready to pull big moves. Good luck with whichever trade/s you decide to go with. Also, I'm glad that you like PHC. I think it makes a good long term investment.

 

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