Several times a week we locate issues that have for good reason or for no reason at all have had a significant increase in price and huge jumps in volume. The fact is that stocks go up and down. What we try to showcase are stocks that are active, money is made or lost on stocks that move. The key is to watch stocks that jump wait for them to correct then get in. Especially when stocks move up for no real reason at all. When stocks move due to fundamental improvement then there is a good chance that the issue is going to create a new plateau and move up. Hope this helps. Remember the key to making money in speculative stocks is buy near the trading lows. A rule of thumb that I like to follow is to find the issues that carry volume and buy them when they are no higher then 20% above the 52 week low price. We all have our methods this is a key one for me. I also never by a spec stock without checking out the CEO's background. If they have been successful before they are likely to do it again. And for heavens sake never buy stock in a company you can't call during normal business hours and talk to someone.
Tuesday, November 24, 2009
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