4 Ways to Tell if a Stock is Low or High Risk

Risk management — we talk about it over and over again. But what does it mean for you as a trader? For one, you need to focus on the right stocks for your strategy. Watch and learn! Today, Tim Bohen explains four ways to recognize whether a stock is high or low risk.




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A stock can be low or high risk, but one isn't necessarily better than the other. You have to understand how it applies to you as a trader.

High-risk stocks are typically what you’d consider for a day trade. These stocks are volatile and can offer opportunities to grow a small account quickly. But if you’re looking to trade part-time or even just looking for less volatility, you probably want to look for lower-risk stocks.

Really, it all boils down to your time frame … short-term versus long-term trading. Do you know what strategy suits you best?

And can you separate the high-risk stocks from the lower-risk stocks?

First, delineate high-risk stocks from low-risk stocks by price range. Penny stocks are cheap for a reason. Higher risk can mean potentially bigger moves. But you gotta be ready for them.

Higher-priced stocks usually mean less risk ... but it’s harder and slower to grow a small account with these stocks.

Next, keep an eye on the float. What’s the difference between a stock with a float of one million versus millions or even billions? Tune into the video — you need to know this!

And don’t forget about the fundamentals. Look for actual sales. It’s obvious blue-chip companies have products. But everyone knows this, and the competition is strong. Low-priced stocks might not even have a product … BUT if everyone believes the announcements or press releases, that can cause enough mania to offer opportunity.

Last tip ... Are the companies real? A lot of these penny stock companies don't even have products. It’s part of their plan, their pipe dream. This gives them the chance to move BIG. Again, you gotta know how to play.

Be sure to tune into the video to go deep on the differences between high- and low-risk stocks.


#StockMarket #LowRiskStocks #HighRiskStocks
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*Tim Bohen teaches skills others have used to make money. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed may be exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.

You can lose money trading stocks. Do not invest money you cannot afford to lose. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services.

[Stockstotrade]

What’s your risk tolerance? Do you prefer high risk or low risk? Leave a comment and let us know!

[andysalo]

Hi risk mostl, usually a swing trade due to lack of STT, working on a better computer, bag holdet at the moment, thanks for all the videos, happy holiday!!!

[danechowning]

Tryed low risk didn't have very good luck with it doing a little bit better with high risk thank u for all your video they're so helpful to me

[jcor]

Great video and great detail. Thankyou

[leejones]

Great stuff Tim! Thank You for breaking it down! Happy 4th of July! 😎

[aankorai]

Thanks, Tim for the valuable information!

[antonwilson]

Tim this was a very simple and well put video lesson! You guys are awesome at STT! Thank You always, very helpful!!!!

[RxmpageHodl]

Keep em coming my man. Great info.! Definetly high risk for me but im starting to look at higher float stocks for swings now. WKHS and WRTC are looking good right now

[aaronwilson]

At my age higher risk. Your video was great, solidified my understanding on playing high risk but finding the business with "real product". Good float and like a 10 mil volume on the day. Still learning and appreciate the work you put in.

[AgentsofChrist]

Nice, Video. Do you have anything on knowing when a penny stock is a good long-term investment and rapid price growth? Like WKHS, ENPH from last year, and others.

[johnrock]

Hey can you make a video on how to find penny stocks. And how to identify if their good or bad

[donnamacfadyen]

High risk. I let my fund manager handle the slow risk stuff.
Thank you for the videos. Can’t wait to join steadytrade team soon🦋

[marianoabuendes]

I like day trade penny stocks sound intereted

[acubsshadow]

High risk is where big things happen! But u need knowledge to stay on your feet. The best things in life, are found on the other side of fear..Im a risk taker baby!!

[DavidReyes-bzrc]

I don't think swing trading is low risk. Stuff gaps down 80 percent with low fundamentals

[alexlucas]

high risk baby scared money makes no money