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TRADING ONLY $10 (OR LESS) STOCKS
My name is John Tsucalas. For over 20 years I have traded and invested in stocks. Over the years I have found that I have always been most excited and ultimately do my best at finding lower priced stocks that have a great deal of potential. These are the stocks that can yield multiples of my original investment in relatively short periods of time. These also are the stocks where I can often identify a single area of business that actually affects the bottom line of those companies. In other cases lower priced stocks are actually larger companies that can be either headed out of business or about to turn around. I spend a great number of hours researching stocks, business and world events, and screening the market for opportunities. When I enter a position it will vary in risk, length, percent of portfolio, and target based on a large number of factors. One thing is certain and that is that I vary all of these factors.
When I was asked to write the Ten Dollar Trader I was anxious to share my passion and to share my research with others. I will always try to share:
Why it is a “pick” at that time
What makes that company special
How long I plan to hold (a range)
Position size (usually expressed in small, medium or large indicating a percentage of portfolio)
Target price I am looking for (this can change as time goes by)
Level of confidence (just how risky do I think this particular trade is)
After years of seeing the volatility of stocks I greatly prefer to not use stops. I will exit a position if something fundamental changes but otherwise I usually will ride out the lows if they come. I also may choose to add to a position if there is a good buying opportunity after I have entered the trade. My assumption is if you know these basic factors up front you will have a good idea if a given trade is your style. Some trades will be under $2, others under $5, and some under $10.
I will also try to keep it fun and plan to shoot for about 1 trade a week but that can be more or less depending on the market. I love lower trending markets so expect more activity when the market pulls back.
Please consider trying my $10 Trader Service which focuses solely on stocks currently trading under
$10 per share. Of course, we offer a 30-day free trial on this service.
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Sincerely,
John Tsucalas, Editor
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