Stocks in the $100 to $250 range are the best stocks to trade with my system. These are the stocks that react the best to my intra-day enter/exit strategy. They tend to move very fast, and they offer more intra-day trade setups. Also they only require 100-share block trades, thus keeping your commissions fees lower.
For instance, if you're trading a lower priced stock—let's say in the $10–$30 range—in order to make any money you have to purchase 500 shares on each trade. When you're trading through a pay-per-share broker, this means you're paying 500 percent more in commissions on each trade.
Even stocks priced at $90 tend to be slow movers and will not react properly to my system. So keep this in mind from now on: if you're accustomed to trading stocks priced under $100, you cannot trade them with my system. Soon you'll understand why.
The first point I want to make is that the stocks you pick now will be traded with both intra-day and swing systems. Most S&P 500 stocks priced $100–$250 will be sufficient to trade my system. Most will be blue chip stocks—these are Wall Street's stocks!
Another very important criterion is that the company should have experienced a couple of earnings release dates and should have always remained above $100. This proves their consistency. Here's a precise rule to follow: