Gary Halbert · whole document (49)
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Stocks priced at $1.99 or less represented 44% of the
big daily gainers.
Stocks priced from $2.00 to $2.99 represented 25.8% of
the big daily gainers.
Stocks priced from $3.00 to $3.99 made up 12.6% of the
big daily gainers.
Stocks priced from $4.00 to $4.99 made up 3.5% of the
big daily gainers and...
All
Stocks Priced
$5.00 Or More Represent Only
13.9% Of The Big
Daily Gainers!
So, here's what I've decided so far: I'm (at least for now)
only going to concentrate on stocks on the NASDAQ which are selling for less
than $5.00. This selection criteria alone has eliminated me having to examine
99.9% of all stock market investment opportunities.
But, my friend, we ain't done yet. Not by a long shot. Just
because a stock is selling for less than $5.00 and listed on the NASDAQ
doesn't mean it makes the cut. Nope, all we've identified here is the
"preliminary pool" of stocks we are even willing to look at. There
are numerous other hurdles even
these stocks have to overcome before they qualify as a "pick."
The first of the next hurdles is volume. If a stock has a very
thin daily volume, just the fact you invest in that stock will make it
skyrocket in price.
Conversely, if the daily volume is too high, way too
much of a mountain of money has to be moved to effectuate a 50% or more jump
in price.
If you are at all active in the stock market, you are already
aware of the success of a small group of stock market experts (they really
are) who have an informative website and write books on a how a "Motley
Fool" should invest in stocks. I recommend their material since it's very
informative. Here's an eight item checklist they use to select stocks worthy
of further examination: