tag:blogger.com,1999:blog-67454546242707800332024-03-13T17:23:11.938-07:00Low Volume Stock PicksThis blog is dedicated to an investment strategy based on low volume stocks–that is stocks that are traded on a smaller scale and there for have large swings in their prices and periods of inactivity.Drew Neilhttp://www.blogger.com/profile/10449682848918323803noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-6745454624270780033.post-12105877640322886372011-05-21T11:07:00.000-07:002011-05-21T11:07:09.258-07:00Venture Capital Headed (Mid) West?<div dir="ltr" style="text-align: left;" trbidi="on">This blog mentions the likelihood that smaller, low cost markets might be getting more investment from Med-tech companies. Should we expect the next great medical technology stocks to come out of the Midwest? LECT, LecTec is a stock to watch as it bounces around $3. They are positioning themselves to be bought up by a larger company. It's a small operation with only 2 employees, but their model might be one we soon see coming out of places like Sioux Falls, SD. <a href="http://callsiouxfallshome.com/blog">Sioux Falls is ready for venture capital investment. </a></div>Drew Neilhttp://www.blogger.com/profile/10449682848918323803noreply@blogger.com0tag:blogger.com,1999:blog-6745454624270780033.post-22814308115294117362010-07-14T11:39:00.001-07:002010-07-14T11:39:33.015-07:00Low Volume Strategy Remains a Winner Through DownturnI was making money the whole time when the stocks went through their recent downturn. My current list of low volume stocks to trade are:<br />
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CAGM<br />
JUHL<br />
KINSDrew Neilhttp://www.blogger.com/profile/10449682848918323803noreply@blogger.com0tag:blogger.com,1999:blog-6745454624270780033.post-29259464601150418062010-04-10T09:47:00.000-07:002010-04-10T09:47:00.293-07:00JUHL Wind Increases RevenueJUHL Wind's recent revenue report briefly piqued interest in this small green energy company. Watch for its stock price to settle back into old patterns once the news fades. But with it reporting a 700% increase in revenue, don't doubt that it is a long term winner with the ability to play nice in the short term.Drew Neilhttp://www.blogger.com/profile/10449682848918323803noreply@blogger.com0tag:blogger.com,1999:blog-6745454624270780033.post-21898310553877095472010-02-17T16:48:00.001-08:002010-02-17T16:48:51.481-08:00China Green Materials Opening Up New MarketsCAGM is a company that makes a disposable product in high volumes. Such a company is poised for sustained growth as it opens up new markets. Recently the company announced that it was beginning sales in Europe. They are finding support around $2.30 these days.Drew Neilhttp://www.blogger.com/profile/10449682848918323803noreply@blogger.com0tag:blogger.com,1999:blog-6745454624270780033.post-64324989926546727942010-01-29T18:13:00.000-08:002010-01-29T18:13:42.193-08:00JUHL wind sustains patternWeeks ago I blogged about the patter JUHL had established of bouncing between 1.85 and 2.00. Made money off of that pattern, but JUHL continues to be a money maker between 1.76 and 1.85, reflecting the downturn in the general market.Drew Neilhttp://www.blogger.com/profile/10449682848918323803noreply@blogger.com0tag:blogger.com,1999:blog-6745454624270780033.post-27039262399555823032010-01-07T15:49:00.000-08:002010-01-07T15:49:55.474-08:00CAGM proves a winnerThis stock is great example of a low volume stock that leaps out of its head and shoulders pattern to new heights. Keep an eye on this one. It could slip out of favor again, making it a bargain buy.Drew Neilhttp://www.blogger.com/profile/10449682848918323803noreply@blogger.com0tag:blogger.com,1999:blog-6745454624270780033.post-86336096649905308542009-12-23T10:44:00.000-08:002009-12-23T10:44:52.552-08:00JUHL Juhl Wind– and the Rules of Low Volume TradingRule #1: Never own a stock that's not worth owning.<br />
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I like JUHL because is in a growth industry and manages its debt well.<br />
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Rule #2: Only trade what you do not need soon.<br />
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Because it may not be easy to get a buyer when you need one, this strategy is for money that you will not need any time soon (within the year). While this makes low volume stock less attractive, that is precisely why we get to profit where others take a pass.<br />
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Rule #3: Know the history of a stock.<br />
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Low volume stock develop trading patterns over months and years. Check out where the low and the highs are for the last 6 months. Look for ping pong pattern bouncing between these buy and sell points. These patters develop as the price bounces between the bid and ask price. Ride the spread, and patiently wait for those periods of increased activity. In the case of JUHL, the price has been bouncing between 1.82 and 2.00 for nearly a year. That is a 9% gain every time you are able to complete the trade.Drew Neilhttp://www.blogger.com/profile/10449682848918323803noreply@blogger.com0tag:blogger.com,1999:blog-6745454624270780033.post-80038572859563972562009-12-23T10:36:00.000-08:002009-12-23T10:36:14.000-08:00Why trade low volume stocks?First, let me say that trading a stock with low volume is not a complete investment strategy. It is a strategy that should be used in combination with a comprehensive approach to long term growth.<br />
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But it can be very profitable. This blog will tell you how to spot investment opportunities and profit from forgotten corners of the stock market.<br />
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Spotting the Trend<br />
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Technical traders like to read charts like tea leaves. Spotting low volume trends, however, defies some of the conventional thinking about technical analysis.<br />
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For one, since low volume stocks do not trade as often or as quickly, longer term trends are more helpful than shorter term trends. For this reason, when I begin my analysis, I begin with a 6 month view and run a 200 day moving average through my chart.<br />
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Low volume stocks tend to hover around this moving average for months on end. The key to a profitable low volume stock is one that fluctuates around this moving average with a large enough swing that one can buy low and sell high (or short the stock accordingly). <br />
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Notice that low volume stocks have a huge spread, so patience is key. Sometimes an order will have to be open a long time to be completed, but every low volume stock goes through periods of higher volumes. Cashing in and out during those periods makes the patience pay.Drew Neilhttp://www.blogger.com/profile/10449682848918323803noreply@blogger.com0