What Are Low Float Stocks? - YouTube

- In today's video, we're going to talk about

low float stocks and why it's so important

to be able to spot them first because of

the rapid price appreciation and

why you have to be there as quick as possible

and ideally be in first.

(upbeat music)

- Welcome back everyone.

Lead Trainer with StocksToTrade, Tim Bohen here.

You're going to hear a lot about low-float stocks

especially if you're starting to Google these terms

and try and find out quote-unquote

how to make money in stocks.

You'll hear low-float a lot.

And let's kind of start out with

defining some terms so that you know what these are.

The float is the freely tradable shares of a stock.

Every stock has a pre-set number of shares

that are freely traded on the open market.

Now something like Apple might be five or six billion.

Microsoft, I think, is like seven or eight billion.

So think about the float as the supply,

the amount of shares that

day traders, swing traders, investors

can freely trade and these shares aren't locked up

by institutions or insiders or employees

in compensation plans, et cetera.

So why do we care about low floats?

Why do we target them so much?

Because these are the type of stocks

that can make the big moves

that can really help you grow that small account.

These stocks routinely go from a dollar to

three dollars to nine dollars and even higher

in the same day.

I mean, we've seen stuff in the past years like DRYS.

This was a stock about a couple years ago,

went from four dollars to 140 in like two days.

KBIO was a couple years ago,

went from the low single digits,

I think four or five to like 55 dollars in a day.

You know, these are the type of big moves

that can really make a difference in your account.

So back to definitions,

when we talk traditionally in day trading world

about a low float stock,

we're talking about a stock

that has less than ten million shares available

of freely tradable shares.

Now why is StocksToTrade so great?

Every screener, every tool, every filter,

every watchlist, every chart, every data box

in StocksToTrade has the float listed

as well as the ability to target low float stocks.

Some of these features are ones that

I particularly requested because

I love these low float stocks so much

because they're the volatile stocks.

They're the ones that make the big moves to the upside

and keep in mind if you're watching this video

because you're interested in short selling,

the beauty of these stocks is

they go up quickly and when the music stops,

they can quite frequently come down very quickly

so they're great to go along on the front side

and they're great to short on the backside.

So definitely, if you're looking

to grow up a small account, you want to look at these.

Have your plan in, you know, in play.

You need to have a trade plan.

You need to be disciplined on your stop loss

and stop out when you hit your max loss.

But remember, with StocksToTrade,

the scanners, the filters, our algorithm oracle

is specifically geared toward spotting these stocks.

Start watching low float stocks,

paper trade them to test first.

But for sure, look for stocks

less than ten million float with news

that are up big on the day.

Thanks for watching our video.

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