DislikedHi pannet1 I used to trade stocks, my experience was not good, what about trading your exchange index and sectors? if I were to have to trade stocks again I would only trade the indexes and the sectors, not an individual stock ever again, the lower the value of the stock the worse they are to trade in my experience, please be careful doing this, at the end of the day it is your choice just saying about my experience of it. You are correct I believe that whatever you trade it should be similar to trading currencies from a t/a point of view and yes...Ignored
your experience with stock may not be good but that could be sometime in the past. i think now you can play it totally well in stocks with your present FOREX experience.
In forex, with lesser account size, one needs to end up with bucket shops. i have to fight the market place as well as the broker. with stocks atleast i need to fight only one, the counterparty.
though $1-$2 seems to be low, with our currency this roughly translates to INR 100 - INR 200. these stocks will be more liquid. the exchange includes the best of the best as its index constituents and the contenders ( in the future section). i am selecting those stocks that have future section because they don't have the circuit limit (upper and lower). so they can theoretically go to any price.
there is something called penny stocks in the range of INR 1 - 10, which are really pump and dump and are dangerous like you said. you also don't get leverage for them from the broker and could go to 0 anytime. most of the stocks have a tendency to return to mean, this i am planning to take advantage of. For us it need not even have to return to mean say we bought 1x on the top ... buy the 48x at the bottom and if it even gives a bounce, i will be home.
this is buy only strategy and its crucial to buy .. when the price is trading above the open line.
EDIT: Finally spotted one loss trade