|
Small Cap Stock Trading :
Ask your-self this. What is the NYSE, NASDAQ, S+P 500 index?
I mean we are bombarded with these figures every day "The NASDAQ
touched new 6 month lows yesterday. The S+P 500 rallied by 40 points
on the back of better than expected earnings… blah,blah,blah…..
But do you know what this figures actually mean?
Let’s take the NASDAQ composite. It is made up of a basket of
shares, the largest and most well traded stocks and an average of these
stocks figures go into making the NASDAQ composite. Remember that
word "average."
As with ANY average you will always have share outperforming and
under performing the average. Stands to reason. Now with all the doom
and gloom about how low these markets are heading. How it is impossible
to make money as a bull in this market would you be surprised by
these numbers?
26 stocks in the markets have made over a 200% return this year!
7 of these stocks have gone on to make over a 500% return this year!
3 of these stocks have gone on to make over a 1000% return this year!
I have had some huge success with stocks such as MOVI +84%
ALLY +67%
THQ +59%
So it’s not all doom and gloom.
Didn’t CNN say this is a bear market and there was no money
to be made by the bulls? Well seems like some-one is wrong.
Bottom line: Market conditions are tough. The big cap stocks
are falling far and hard. Mutual funds are losing buckets full
of public money. The public are switching off the stock market
in their droves as those market darlings they held last year
are sinking lower and lower.
But you are doing the wrong thing. Completely the wrong thing!
In a run away bull market you want to be INVESTING in the
BIG CAP Momentum stocks. There simply is no better or easier
way to make a lot of money.
But when the market averages turn sour you have to change your
strategy. You now have to trade the small cap momentum stocks!
This is where the money is being made now. The last thing you
want to do now is leave your hard earned money invested in
Yahoo, SUNW, QComm in the hope they’ll bounce back. It
won’t happen in our lifetime. Yahoo and a host of other high
flying stocks in the 2000 bull market have had their day in the
sun. It will not be repeated! Their bubble burst a long time ago.
If you can’t stomach the stock market any-more then get out!
If you are willing to give it another shot with a slightly different
approach then order MSTS now and start trading in those small
cap momentum stocks. This is where the money is!
How long can the market keep heading lower? Well I hate to
keep repeating my-self but the fact is no-one knows. Some bear
markets in the past have lasted over five years. Does it look as
if the markets can head higher from here? Do general conditions
warrant a new bull market cycle? I see absolutely no sign of that.
Keep your ears closed and trade what you see. Right now I see
Lower markets ahead. Keep out of the large cap stocks.
back
to articles
Copyright 2001 Mark Crisp
|