I spent the day reviewing my March trades and the general action.  Low float mania has struck and is leading to bad habits.  Here is what I have seen, and some of this I am just as guilty of myself.   I cannot tell you how many emails I have gotten over the last two weeks about a tale of woe with the low floaters.  Here are some bad habits that need to be cleaned up in order to trade successfully again, the top five:

-  Stop trading too MUCH.  Trying to catch low floaters long or short can and will lead to overtrading.

-  If you can, don’t forget to move stop to entry when a stock goes your way.  A flat trade is better than turning a winner trade into a loser. 

-  Keep in mind position size in terms to float.

-  Stop buying every single news item because low floaters are moving.

-  Remember to buy on days low or short at days high for best entries.

All losses must be shrugged off if rules are followed.  It’s the sloppy trading that must get called out.  The slop must be cleaned up in order to succeed.

Have a great weekend - !

Welsh