Equivolume Trading
Equivolume or Price and Volume Trading is the art of picking stocks which are rising in price and volume.
For price and volume trading, I like the price above $0.50 and the price below $75.00. I select stocks with yesterday's trading volume at least three times the 50 day moving average for the volume and today's price greater than yesterday's price. I stay in this position from 1 to three days or until I reach 16% at which time I sell. I will also sell if the position drops to a 10% loss. With this type of formula I have shown from 90% to 150% profits on backtesting for the year 2005.
The secret to this type of trading is not to get attached to your stock picks. Stick to your trading stategy.
Use a good stock database and sort based on price and volume trading as described above. Then resort these selections based on a combined scoring of value, timing and safety.
Remember to backtest often and get comfortable with a new way of trading before you start actural trading.
One of the good database sites which is updated every day is listed below:
VectorVest
Now see the two pages below for my history of stocks under $10 and my live ongoing selections of stocks under $10
- Biggest Gainers for 2007 [Current Trades] Follow My Trades as they Happen
- Biggest Gainers [History] to build your confidence