Under $10 Strategy
I don’t normally trade stocks under $10 (I have and I’ve made money). The lure of catching that next great stock that rockets from single to double (or even triple!!) digits can be so alluring. So, I finally broke down and subscribed to Investor’s Business Daily’s “Top-Rated Stocks Under $10”. I’m hoping this service will help me pick good under $10 stocks. My opinion of stock suggesting services is simple: Make me money and I’ll keep subscribing.
Here is my strategy so far:
1. Small amounts
- No more than 25% of my cash in one stock. This will limit my risk.
2. Diversify
-
No two stocks in the same sector. Diversification is always a good option. This will hopefully keep me from being killed by any bad news for one sector.
3. High Relative Strength (RS)
4. Positive EPS
-
For annual and next /last quarters. I’m picky about investing in profitable companies.
5. Volume %
-
I want to see activity on the stock. That may be a good sign of a break out and PROFIT!
6. Simple Moving Average going up
-
Never invest in a sinking ship.
As I try out this new strategy, I’ll make changes as needed. My goal is to have a strong under $10 strategy that I can use to help increase my portfolio.
As always, comments are welcome!
Tags: finance, loss, money, profit, sell, stock market, stocks
Leave a Reply