Special Instructions regarding trading low priced stocks
These are stocks at $10 or less
- Please be sure that you use a limit. We will provide a maximum limit to buy at, please buy at or below this price.
- Due to the large number of members on the site, please limit your order to 2500 shares or less unless the stock is trading over 3 million shares. While we cannot police this,we are asking our members to do this to prevent artificial advance of the stock due to premarket orders.
- Avoid placing a premarket order unless you have to; and try to place the order during the trading day.
- DO NOT chase the stock if you cannot buy right the next day below our maximum limit. These stocks tend to pull back in a day or two.
- We expect a holding period of 15 days to 60 days with such stocks
- Remember that these are highly volatile stocks in terms of price and volume and may not be for everyone. You will have to decide if you are comfortable trading such stocks.
Managing Positions:
Sell Target:
- To give more accurate exit parameters for each stock we will be using a sell target in the form N1<T<N2, where N1 is the lower boundary and N2 the upper boundary. AS an example $4.20<T<$4.50. It means you should sell between $4.20 and $4.50. These numbers are determined by the charts. This will also be used for long option positions.
- For short option positions we will be using T<=N . Example T<=0.30. Buy back the option at $0.30 or less.
- If under sell target we have Update (date). ex Update(6/26) it means you should scroll down to the open position and read update.
Note: In answer to questions from some of our subscribers. We do not hold positions in all the stocks we recommend. The main reason for this is that our subscribers come first and if the stock or option volume does not allow us a good size position we will not enter. In such cases cases we will report the stock or option closed even if we do not hold a position.
Position closing Price Reporting:
Under instructions from Samir stock and option exit prices are to be reported on the site according to the system below. Stock sale prices will be reported on the site as follows:
As we indicated in the “Sell Target” above a recommendation is made to sell a stock between a lower and an upper boundary. The exit price reported on the site will be as follows:
- If the high of the day is between the midpoint and the upper boundary, the midpoint will be reported as the sale price
- If the high of the day is between the lower boundary and the midpoint, the lower boundary will be reported as the sale price.
- If the high of the day is above the upper boundary then the upper boundary will be reported as the sale price.
- If the high of the day is right at the midpoint then the arithmetic average of the low and the midpoint will be reported.
For Short options we usually recommend you buy back the option at a price equal or less than a specified number. The buy back price will be reported as follows:
- If the ask price of the option never reaches an amount equal or less than the specified number; the option will not be closed.
- If at any time during the trading day, the ask price reaches a price equal to or less than the specified number, the specified number will be reported as the buy back price on the site.
- If the highest ask during the day is less than the specified number, then the highest ask will be reported.
- In cases of options with low volumes where we may not hold a position, a buy back price will be reported if the ask reaches the specified number. This position will be assumed as closed even if no volume is traded.
If you cannot watch intraday trading, place a limit order near the specified number.
Please note that our aim is to provide predictability and consistency in reporting of exit prices. These prices do not reflect our actual exit price. Some subscribers will get better while others will get prices that are not as good.