Wednesday, October 30, 2024

Which one of these stocks is more likely to 2x?

The answer will surprise most traders…
 
   
     

Which stock would you say is more likely to double in price?

Stock A: $1,000 stock
Stock B: $2 stock
 

 

I have no doubt that 99% of traders would say “stock B.”

But seeing behind the scenes on Wall Street and moving over a BILLION dollars of volume myself as a professional, I can tell you…

That assumption couldn’t be more wrong.

The price of a stock has NOTHING to do with how quickly or easily it can move. 

Plain and simple.

There’s only one variable that ACTUALLY moves a stock:

VOLUME

Let me repeat that point because it’s critical: 

The transactional volume - buying and selling back and forth - is what moves a stock’s price.

Now, to be fair… 

Typically, stocks with lower volume are also cheaper.

And because of the low volume, a lot of cheap stocks DO move more quickly.

But they don’t move because the share price is low.

For example:

Apple, whose share price is around $175, is the hardest stock in the world to move.

Just take a look at the amount of volume going back and forth to change the price by a few pennies at a time.
 

 

So never assume that a cheaper stock is easier to move just based on its price.

Which brings me to Google. 

When Google was $3,000 per share, most retail investors were not inclined to make risky bets on it.

But now that Google stock is “cheap”...

Hoards of retail investors are rushing in to place speculative bets on Google… 

Because they believe it can jump more easily as a less expensive stock.

Unfortunately, they’re sorely mistaken. 

But all of that activity is creating a unique opportunity for us to take advantage of…

And while I cannot promise future returns or against losses, I’m explaining the opportunity—and how everyday folks can get positioned—on this page right here.

Trade well,

Jack

   
 
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