How To Value Stocks -
Stock Rotation Is Important
- Do not buy stocks that are under $3 per share.
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Do not buy stocks that are under $3 per share.
Stocks that are trading in the single digits are considered to be highly speculative. Most professional traders will not trade shares that are trading for under $5 per share. Many mutual funds are even prohibited from investing in these shares due to their speculative nature. From time to time speculation on low valued stocks can be profitable, however i would recommend staying away from stocks that are trading under $3 per share. There is just too much risk here, this companies may be close to bankruptcy, which would mean 100 percent loss of your capital. Play it safe and steer clear.