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Stock Tradability Guide: Top 10 Tips

The document outlines 10 commandments for determining if a stock is tradable, including looking for stocks priced under $30, avoiding large cap stocks, checking market maker tier sizes and liquidity levels, following trends, and watching out for market maker traps. Stocks should have increasing minimum volume thresholds throughout the day and trade under 25 million shares to be considered. Spreads should be between $0.06 and $0.12.

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712 views11 pages

Stock Tradability Guide: Top 10 Tips

The document outlines 10 commandments for determining if a stock is tradable, including looking for stocks priced under $30, avoiding large cap stocks, checking market maker tier sizes and liquidity levels, following trends, and watching out for market maker traps. Stocks should have increasing minimum volume thresholds throughout the day and trade under 25 million shares to be considered. Spreads should be between $0.06 and $0.12.

Uploaded by

ad11010010
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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The 10 Commandments: How to Determine If a Stock is Tradable

Written by: Fausto F. Pugliese

Cyber Trading University

Chairman & President of Cyber Trading University

www.CyberTradingUniversity.com

Commandment 1

Look for stock priced under $30.00

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Commandment 2

Stay away from name brand stocks e.g., Microsoft

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Commandment 3

Check the tier sizes of the Market Makers (size column)

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Commandment 4

Stock must have a minimum volume of:


15,000 shares by 9:15am EST 250,000 shares by 11:00am EST 500,000 shares by 2:00pm EST

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Commandment 5

Stay away from stocks that trade over 25,000,000+ share volume

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Commandment 6

Minimum of 15 MMs or ECNs on the bid and 15 on the ask

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Commandment 7

Look for a minimum of three to four MMs or ECNs in each Level II price level (in color)
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Commandment 8

Check the spread (max. 0.06 to 0.12) risk

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Commandment 9

Follow the Trend

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Commandment 10

Look for the Market Maker Traps

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