Discussion in 'Trading' started by futurecurrents, Nov 26, 2002.

  1. I'm debating whether to exclude low float stocks from my watch lists on the assumption that price may be be more easily manipulated due to the fact that one person/interest can hold the majority of shares.

    Does this make sense and does anyone else exclude low float stocks?


    "He was a wise man who invented beer."
    - Plato
  2. My 2 (very obvious) cents.

    You avoid low float stocks when going short because they are easier to squeeze because the supply of stock is low.

    You WANT low float stocks when going long for the same reason.
    The lack of supply pushes the price up qucker. Only you have to balance that against how thick or thin the trading is. If you get in, you might not be able to get out at a profit if the trading is too thin when you do.

    But of course others may have strategies that break these rules.