[marry123]

Hello,

I was hoping  to confirm whether the correct entry long is a break of the trendline (around 0.50).  It has built a nice double bottom base for a year now so I a assume the trigger long is a break of the trendline over 50 cents on a weekly closing basis (I guess perhaps one could have bought it on a break of around 0.35 but then there is that large trendline that still needs to be broken).

Thank you.

The Stage 2A breakout level was at 0.39, so it's through both the buy level and the initial pullback level, as it is already about 20% above that currently.

My main concern with a stock like this is again the bid ask spread, which from looking at todays trades has ranged between 2 to 6.5%. So this means that you immediately start the trade -6.5% down plus trade entry and exit costs. Spreads like this will eat your account alive over time.

So I'd recommend focusing on stocks with much more liquidity, and that have a very tight bid-ask spread of a maximum of 1%. But ideally less than 0.25%. As trading costs are one of the biggest factors to consider if you want to be successful.

Filter out all stocks below $5 and that have average volume of less than 400,000 shares a day as a starting point. As penny stocks are not a good idea.

Thanks Isa for pointing out the proper buy point. I will focus on stocks that are above $5 with volume over 400, 000 as you suggest, in addition to small spreads. I realize these penny stocks are very risky and can collapse as quickly as they go up.