Poll: What are the average value of your trades?

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  1. #21
    edo is offline
    Solid Member edo's Avatar
    Like Michael said,it´s all about percentages.
    3 - 5 % would be my optimum.

  2. #22
    Rookie Member
    $5 and $10

  3. #23
    Junior Member BinaryScamSniffer's Avatar
    To analyse the advantages of each price range, cheaper stocks appear to be more flexible and easier to manage. The main reason is because you can decide on your own how many stocks to hold, and how many to sell in a risky situation. This sort of liquidity facilitates both money and risk management. Speaking of the pricey side, traders often face the situation when, after an influential event, the future trajectory isn't clear. With $150 stocks you don't have the same liberty of keeping only a ratio.
    However, flexibility is the only reason why price is important. Sometimes, the number of positions traded during a quarter influence brokerage commissions, in this case, buying more stocks at a lower price can be a good decision. Apart from these two, price doesn't say anything about a position. It is a common misconception that price and valuation are the same. Actually, the phenomenon of overvaluation or undervaluation isn't rare, which proves once again that price isn't an objective indicator. Similarly, it isn't true that the lower the price the higher the probability that it would soar.
    Instead of market price, a more objective criterion is price to earnings (P/E). To optimize, take market capitalization and Price-Equity Ratio into account as well.

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