Trade something over 15% and odds are the bulk of the move has already occurred and the only thing left is either sideways action or a pullback from the peak points. Too low of a move and you will likely waste time sitting in a position that has a low probability of turning into a big winner.

This is the sweet spot for high float stocks that are priced accordingly. We are looking for quality over quantity. You will notice right away that the universe of possible plays is much smaller, but that’s ok. So, when scanning for plays you need to first filter out all of the stocks below to dollars. If we are to speak in general terms, penny stocks often times have low float due to the lack of investment dollars 2 – Only Stocks 10 Bucks and Higher If you are unable to find float information, a simple way is to avoid penny stocks. The moves are so sharp that it takes a unique risk profile to consistently make the right decisions and walk away from the markets with profits on a daily basis. From my experience trading, low float stocks are virtually impossible to trade using pure judgment.

I know this is the direction you will hear from many trading experts on the web. Identifying The Setups 1 – Avoid Low Float Stocks Only Reason You Should Trade in the Pre-Market.Place Your Order Slightly Beyond the Pre-market Highs and Lows.7 – Identify Highs and Lows of the Pre-Market Trading Session.

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