Well it looks like if you had played the ethanol stocks you could have banked at least 20% depending on your entry/exit day.Hope some did….As stated in previous post;…there is little hope in buying popular choices like Siri or Rad[down about 10% since contest started].The fact they are penny stocks is good;but not enough alone, if there is no catalyst to force a large move SHORT TERM.Many contestants have grasped the concept of leverage .And since options are not allowed in the contest,using low priced stocks is one way to increase leverage.Simply put ;the chances of a $2 stock doubling are much greater than a $40 stock doubling.But most $2 stocks don’t double; and in fact many go out of business.It is not enough to find under$10 stocks and “hope”. What is a example of a low priced stock that has potential for explosive move quickly?.The headlines are replete with new highs for oil.Hurricane season officially started yesterday.You can play this trend on the bullish side or the bearish side.Take a look at the small independent oil producers.These stocks can, and did double in the past as traders looked for under followed energy plays.Stocks such as NGAS,BDCO are examples of this kind of stock.They are in a “hot” sector,have a low share price,and most importaintly have a low float[few shares issued].Low float stocks can make explosive moves when buyers come in the name.Share price can move rapidly. Stocks which were low float “monsters” in the past were TZOO,HANS,TASR.They are not anymore!!! but if you look at the charts from several years ago you can see the kind of moves possible.We need to find such stocks now!.The existance of large short positions can make these a killing field for shorts;and a possible winning trade for the contest!2008-05-23

Tags: hurricane trading and cnbc contest

This entry was posted on Friday, November 21st, 2008 at 1:55 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.