A Tip On How to Grow a Small Stock Trading Account Into a Big Trading Account

A term you’ll often hear is whole dollars and half dollars. Why are they significant and how can you use these to help your trading?

So, today we’re gonna talk about whole number and half dollars so whole dollar, half dollar and this also comes into play with quarter dollar increments as well. So, it may seem a little weird but I’m gonna kind of back this up with some marketing and pricing information.

But, the idea behind this whole dollar half dollar theory is as stocks break even numbers and this.. I’m gonna, mostly in this article for the sake of brevity, I’m gonna talk about going long but everything I talk about works going short. When stocks break down as well.

So, you can basically reverse everything I said but I’m just gonna talk about going long to keep this article at a decent time frame.

Key Levels

So, what you will see over and over and over again is a $1 stock that has spiked to $1.50 its spiked to $1.70 maybe its gradually uptrending. You’ll see average value, you’ll see building value, you’ll see the price action growing but when that stock breaks $2, and now this isn’t always but this is a very consistently repeating rule of thumb.

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When that stock breaks that key level of an even number of $2 you will see value come in very quickly. And you will always almost always, now not always, but almost always see a quick spike in the price.

Now, you need, the reason I’m telling you about this so you need to be prepared for these levels. So, if you’re watching this stock and its gradually uptrending and its approaching that buck 50 level, that $2 level, that $2.50 or that $3 level. Or even $10, $20, $50, $100 These are all levels that the brain keys on.

How do I know this? It comes from the world of marketing.

I mean how many times have you seen something on sale for 99 cents or $9.99 or $12,997 all of these weird prices. There’s a reason, they’re not doing that to be wacky or weird.

The marketers know that you’re more likely to buy that $12,997 used car than you are to buy that $13,000 used car. So, its a key level and when people see these stocks pushing through those levels they think, back to my $2 stock, they think $2.50’s coming. They think 3’s coming and they wanna get in.

So, focus on these key levels. Doesn’t necessarily mention, or I’m sorry, doesn’t necessarily mean you base your entries off of those but I love to use it as an exit strategy.

So, let’s go back to my example. You’re in this stock, it’s creeping up on $2, you be ready on that exit button that sale button. ‘Cause when it breaks $2 there’s a good chance it’s hittin’ $2.20, $2.25 real quick you take those gains and you’re out and you don’t care about what the stock does the rest of the day.

So, I think it’s a really simple thing but it is something you should focus on.

Focus on those whole dollars and half dollars.

Beer buff. Incurable zombie guru. Amateur introvert. Avid writer. Typical bacon junkie. Trader.