Trading Low Float Stocks

Trading in low float stocks under five million shares presents unique opportunities and risks. These stocks can exhibit significant volatility, making them difficult for new traders to manage their risk effectively. The strategy favors stocks with lower market caps and institutional ownership to reduce volatility, typically aiming for market caps of around two hundred million or less. By focusing on these stocks, traders can find a relatively lower risk strategy that may help them get accustomed to the fast-paced nature of trading.