OK firstly Im looking at the universe of 20c stocks Id like to trade.
Ive placed only one criteria here and thats liquidity.
I only want stocks that have traded over $100K average for the last 21 days.
So I have 82 in my universe.
Now of these 82.
At sometime in the past 50 days.
41 of these have risen atleast 33%
28 of these have risen atleast 50%
11 of these have risen atleast 100%
and 1 has risen 200%
Now this tells me that looking for a 50% rise is not un realistic.
It also tells me that if I limit my loss to 10% of Purchase price I have an expectancy of 5:1 If trades are held to 50% increase.
Now to design an entry and possibly a trailing stop for those impulse moves that get belted next day.
Ill be back.