Risk-Opportunity and Finding Perfect Trades

STOCKS FOR BREAKFAST

Today's trading lesson focuses on finding the right balance between opportunity and managing risk.

My personal strategy includes stocks that trade an average of two million shares per day, and an average true range of $1.50 per day.

Most stocks trade more that these numbers, but it's my minimum criteria.

The reason we need criteria, and especially volume, is liquidity, and consistent activity. Some stocks have big days once in a while, we want stocks that are "in play" every day so we have reliable opportunities to make money.

Low volume stocks can move fast, but they can be very difficult to exit the price you want. (I explain this in the video)

Enjoy the webinar replay and let me know if you have any questions.
Pete