Very Profitably Buying and
Selling Low Priced Stocks Using TigerSoft

                     (C) 2013 William Schmidt
                          by William Schmidt, Ph.D.   last edited 9/16/2013
                          Creator of TigerSoft -

                                                   OUR GOALS
            Typical Examples of Trades We Should Be Able To Make Regularly.

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                                           Introductiory Rules

Making money trading with TigerSoft using low priced stocks is not that
         much different than using TigerSoft to trade high priced stocks.  But there
         are some key differences.  I suggest the following rules to start with:

         1) Low priced stocks do a lot of sitting around doing nothing.  Look at their
         charts.  This should readily become apparent. 

         This makes it imperative to pick your stocks carefully using the right technical
         cues to time your purchases so that they have the highest chance of moving
         in a reasonable period of time.   Otherwise, you will surely feel trapped holding
         stocks that seemingly do little or nothing in a rising market.   Waiting weeks
         or months for your stock to move when the general market is rising is very
         frustrating.  It shows a mistake was made.  Review your trades and learn
         from them.   

         2) Very important.  Sell when a key support level is violated even if the
         Accumulation Index is positive and the Closing Power is rising.  I've found
         that the folks who try to accumulate and rig low priced stocks are
         much more likely to be wrong.  Don't fight price downtrends with these
         stocks.  There is no need to.   Pick stocks that are above their rising 65-dma and
         show good internals.  Even if the Closing Power is rising, the Accumulation
         is positive and the stock keeps falling on very low volume, sell when the
         stock violates the neckline of a head/shoulders pattern or when the stock's
         65-dma turns down or when the stock breaks key price support.

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         3) Diversify.  Do not just buy one or two low priced stocks.  Buy a
         handful, 5-7. This will increase your odds of getting one or two really big winners.
         This is what will increase your gains at the end of the year.

         4) Take 50% profits in 1/2 of your position when you can.  Too many times,
         a hot low-priced stock quickly cools off and falls back to where it started its move.
         This rule can be varied, of course, as desired.  One could work with a stop beneath
         a winning trade that guarantees you a 50% profit in half the stock.

         5) Avoid stocks that trade less than 250-500 lots of ine hundred shares
         a day.  The spread between the bid and ask are just too wide and the market
         makers will more easily take your shares away at unfair prices.

         6) Use the Opening and Closing Power to decide whether the stock is
         apt to open high or lower.  Use that knowledge to your advantage.

         7) Mainly buy low priced stocks that show the BOTH UP condition.  "UU" in
         the spread sheets under "Tiger Sig" tell you this conditon is present.  Chart
         the stock's Opening and Closing Power, too.  With low-priced stocks, the risk is
         always that the stock will fall asleep for weeks and months.  When both Opening
         and Closing Power are rising, the stock is bullishly openng higher and then
         closing still higher than that each day.

          8) When stocks under $10 appear among the BEARISH MINCP stocks,
          sell them short while they are still over $5.  This allows them to be margined.
          If they show very bearish Accumulation,  a CLosing Power that is making new lows
          ahead of price, a falling Relative Strength Quotient, they are very apt to
          drop much further.  Just because a BEARISH MINCP stock is low-priced
          does not not mean it won't fall much further. 

You Just Cannot Be Too Cynical When It Comes To Wall Street
                          Wall Street's Dirty Little Secrets.

1) Democrat or Republican in the White House: It doesn't matter:
         Wall Street Runs The Whole Show.    Early in 2009,
         Wall Street insiders bought heavily at the bottom with money
         given them by the Federal Reserve.   They also were secretly
         guaranteed by the Fed that interest rates would be kept very
         low for a long time.  

         2) The fat-cats there keep the best investing opportunities to
         themselves. I vividly remember realizing this working at
         the main office of stock brokerage Harris, Upham.  I saw how the
         partners kept the best stories to themselves and did not disseminate them
         them to their clients until they had taken their own big positions
         in stocks about to go up.    

Not surprisingly, Wall Street kept the start of the 2009-2013 bull market
         a secret from the Public.   Our indicators showed Professionals were
         steady buyers early in 2009 and for many months after the March 2009
         bottom, all the while the Public was steady net sellers.   Only years later
         in 2013, is the Public finally invited to the party, probably just in time to
         buy what Wall Street and the Insiders want to sell.  (Download 09-Q
         from our Tiger Data page look at the Opening and CLosing Power for

         3) Wall Street Insiders always know first when there is insider information
         that will affect a stocks prices.   See how we spotted this with our Accumulation
         Index in Pizza Hut.  There are hundreds and hundreds of such cases
         we could point to. 

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                                                USING TIGERSOFT

1.  Tiger Data Page Downloads for This Pursuit
  ACCUMHOR - consistently positive Accumulation - Regularly maintained
  new VHIP21 - Stocks under $5 that have shown a bulge of Accumulation above +.45 - Regularly Maintained
         LOWPRICE  - Stocks under $5     -  Regularly Maintained...

2   Tiger Indicators and Tools
       Each year Tiger reports on the best gainers of the last year.  Each year, most show big
        bulges of Accumulation before they start the best part of their moves.  Flat topped
        breakouts with gaps and red-high volume are also typical of the majority of the
        top 10, 20. or 50... See the study for 2007's biggest gainers.
        See also
        There are always many low priced stocks with these characteristics that double or

        Tiger Accumulation Index
                        Test Your Skills at Stock Selection
                                                           Which would you have bought?
                                                                             IBM  or Cheyenne Software
                                                               Here's What would have happened.
                                                                             IBM  or Cheyenne Software

        Tiger Closing Power - Read our on-line book on this.

        The Tiger Power Ranker lets you easily screens large numbers of low-priced stocks to find the stocks
        to find the best candidates that are apt to become the next explosive super stocks.

        Using the the Tiger data downloads mentioned above run the Power Ranker's ANALYSIS.
        Then either list these stocks with the spread-sheet display or graph them in sequence.
        Using these screens will find you most of the best stocks early-on.

             Find and examine stocks showing these Power Ranked Characteristics:

BULLISH - the most important...
             New Highs, BothUp, Unusual Volume, Price Gaps, B10s, B12s, B20s,
             B24s, Unusual Volume,  Short-Term Stochastic Buys, 

            Require AI/200 to be above 145, IP21 to be above +.23
                                                  Require Closing Power to be confirming the new high
                                                  Require OBV and Relative Strength to be confirming the new high.
                                                  Don't chase a stock more than 10% above its flat top breakout point.

             Example from the 9/3/2013 run of the TigerSoft "BULLISH" picks among the 200 Biotechs
             we offered.  

                   They were:
                           Power      AI/200  Curr, IP21    Price      50-day Trend    MACD Signal      Tiger Signal
EBS        551           175         .25            17.73    .98 (below)             Sell                 ?D
                                        (Pink shows the price was too high, or the value was too low or negative)
  QDEL      481           183         .18             26.69     1.02                         Buy                  ?U              
              ALNY       436           158         .05            
52.42     1.05                        Sell                 U!U
         ==>CUR        418           160         .13              1.64
      1.03                         Buy                  UU   
              CSB         399           166         .23              1.33
      1.04                       Sell                  DU       
              CUR was the only stock in the top 5 Power Ranked Biotechs that night that qualified
              on all counts.
Examinatin of the CSB chart showed it had nearly doubled since its
              June breakout.  As we customarily want to find a low-priced stock that will give us a 50%
              gain on a breakout for half of our position, CUR clearly was much better. A quick look
              at Yahoo showed that its work in spinal repairs using stem cells made it a good story
              spot.   the coming football season would surely highlight the need for better ways
              to treat spinal trauma.  

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               Technically, CUR was perfect.   You can see what the stock looked like on 9/3/2013
               above when I recommended it on our Stocks' Hotline.  The factors that made me
               pick this stock were listed below.  You will see that these were the classic
               technical considerations we want to see in a low priced stock we buy.
               So, I suggest studying them closely.

                   1)   It showed steady positive Accumulation.  Its AI/200 score was above 145.  

                   2) It had had a bg bulge of insider buying in early July.  The IP21 went above

                   3) The stock had two weeks earlier then shown s Closing Power that had broken"
                   its downtrend.  This was the bullish "Closing Power hook-upwards" following a
                   bulge of insider buying.

                   4) The stock had then gotten back above its 65-dma.

                   5) Now both Opening and Closing Power were rising.  The stock was primed to
                   advance.   We might not have to wait long.

                   6) Best of all, the stock had a set of earlier flat peaks at 1.80.  If the flat
                   resistance here could be overcome, the stock would breakout and attract
                   new buying interest.  

                   7) It was in the red-hot biotech group.  This meant its trading would be
                   watched by many investors and advisors, too. 

                  CUR did breakout.  It jumped by more than 50% with two weeks.  Here is
                  its chart right now, as I write this. 

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                                             ADJUST YOUR TRADING TOO IT.


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3.  STAGE ONE: Buy The First-Out-of-The-Gate Low Priced Stocks :

         At the end of a long bear market, many stocks will be low priced.  Buy those
         that first break their price downtrends and that are the leaders in terms of Price-Pct change
         and Unuusal Volume.  As they advance, their Closing Power should be leading Price.
         They should show rising and increasingly positive Accumuation.
         See Tiger Blog: "The Great 2009 Bull Market"
         See also - See examples from early 2003
         and early 2009. 
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4.  STAGE TWO: The bull market has now gained many believers.  But not all stocks
           go up equally or together.   After the bull market is a year or two old, we must
           be more selective.  Use Tiger's Buy Tiger B12s and B10s to find these among
           stocks between $10 and $20.   This is the price range of the biggest gainers
           ar this time.  As they gain acceptance and surpass $20/share, bigger insttitutions
           will start to buy them based on jumps in earnings and expanded PEs. 

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          Unusal volume, big gaps and Buy B12s will also find low priced stocks at this
          time.  They are most likely to be in biotechnology, where earnings potential
          stories can be spread based on potential new drugs and treatments they are

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           Require these stocks to bulges of Accumulation and flat topped breakouts.
           These are stocks insiders and professionals have accumulated preparatory
           to a mark-up phase that usually lasts a year before the bullish news finally comes
           out that the insiders expected, controlled and will use to bring in the last public
           buyers near the final top.
TigerSoft's 1997 Study of Bullish Special Situations

           Note that these STAGE 2 Explosive Super Stocks will usually rise a year before they collapse. 
            This will give you many additional buying and trading opportunities with these stocks using Tiger's
            Closing Power in conjunction with the rising 65-ma and 21-dma of Closing Power.  Where
            there has been a classic bulge of Accumulation and take-off with majors Buys, flat-topped
            breakouts on red high volume with price gaps, you may want to be an investor, not
            a trader.  Take a position in five or six of these and just let them run.  Hold them as
            long as they stay above their 65-dma.  If they violate it, sell.  But don't recommit the
            funds until you see whether the breakdown was actually bearish.  If the stock quickly
            recovers and the Closing Power turns up sharply.  But the stock back.  The decline will
            probably prove to have been false.

5.  STAGE THREE:  In this stage, it shuld be apparent that the long bull market is coming to an end. 
           Peerless will have given Sell S9s and Sell S12s.  The DJI may be desperately trying
           to hold up above its flat 65-dma.   At this point, the few, remaining stocks making
           new highs get an inordinate attention from breakout buyers and high-performance
           chasing funds.  This makes them go up faster and further. The general public is now
           in the market now.  They prefer low-priced stocks.  These are usually very thin.  After a
           suitable period of insider and professional Accumulation these stocks breakout with
           flashy increases of volume and big price gaps.  They show the usual major TigerSoft
           Buy signals: B10s, B12s, B20s and B24s.  The difference is that they are "shooting stars". 
           Their extraordinary gains from start to finish usually are made within 6-9 months.  Then
           they collapse completely.   They give back all their gains in the bear marlet that has
           now hit all shares.    Act accordingly with these stocks.  Work with tight stops.  Look for
           the signs of a top, such as head/shoulders patterns, false breakouts and breakdowns
           below nested price suppport/the 65-dma/the longer price uptrend/the Closing Power uptrend.

           We saw this in many small oil/gas "penny stocks" in 2008 when crude oil prices
           briefly rpse from 110 to $150/bar. 

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                Actually this is true for any priced stock.  But low priced stocks are manipulated
                mostly by "small-time" operators.  They are "small-time" for many good reasons.
                Their judgement and control of the stock is much mor elikely to be wrong.
                This means the Accumulation and Closing Power can fail to call a top or
                a support about to give way, as they do with higher priced stocks.  This makes
                sense I think.  The manipulators and Accumulators of these stocks are
                not nearly so smart, well-endowed with money or have as much control
                of news and events as the much bigger operators do.  Goldman is successful
                because it has money and because it can control Washington DC.  The small-time
                operators working with low-priced stocks are much more likely to be wrong
                as a result.

Warning - Sometimes low priced stocks fool even the professionals and
               the Accumulators.  It is best to work with stops with these stocks underneath
               well-tested flat support.
Below, I recommended SFEG at $1.00.  It rose
               nearlt to our 50% goal for half the stock, but then started falling back when
              the take-over of another company they were attempting failed.  As gold
              prices fell, the stock dropped and dropped, hitting 10 cents two and a half years
              later.   See how this happened and why you must use sell stops and sell
              when prices break below these support levels.

              Jan15, 2012 SFEG Santa Fe Gold Shows Bullish Insider and ... - TigerSoft

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