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Abiel

Avoid low floats and NYSE stocks as newbie

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I´m about to start simulator and rigth now I´m finishing my trading plan. We know that low floats are riskier and NYSE stocks are more difficult to manage. In your own experience, it´s a good idea to avoid these stocks in initial phase of simulator training and trade only NASDAQ and mid floats?

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Wanted to add my two cents on this. I'm still relatively new to day trading, and initially when I went live low floats interested me because I was starting with a small account size on suretrader. For me it ended up being too risky over time. I'd hit a home run on one out of every several and while the profit from that would be greater (due to increased size that I could leverage even with my small account) the losses on those that I didn't time perfectly, or get lucky on, out weighed it.

I had to re-adjust my strategy and just take small positions on mid floats, and I'm now consistently making more profits than losses. No home runs profit wise, but several base hits, and I'm around 70% accuracy on my trades.

 

Personally I just found the mid floats to be easier to trade (and be correct in my trade) and as my account slowly grows my position sizes can grow and profits should grow as well.

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Thx for sharing your experience mgladding. I traded a couple of low floats right at the begining on sim, I was lucky I guess, but now I don´t trade them, just ignore them when they make it to Andrew´s watchlist...

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