JMHO... Rules are sometimes put in place to keep folks within the guardrails. There are no black and white answers as we live in a gray world. Short answer - must move well relative to that particular stock. You are going to get burned attempting to continually trade a $4 mover on a $200 stock. Forget about any particular dollar amount. Pull up a chart and decide if it moves. It either moves well with clean moves that you can see within context of how GW teaches you to trade or it doesn't. I've had $20 to $30 dollar stocks that moved great compared to the stock price (e.g., $6 to $8 or more). There are also $100 - $200 stocks that move $8 I wouldn't touch. I never had a particular move price in mind - it makes moves I can see or it doesn't. For comparison purposes, even during the teeth of the summer most of my shortlist moved $8 to $10 or more on the low end. During other times of the year, decent movers were $15 to $20 with minimum of around $10 and had some that moved $25 to $50+ Regardless of all that, it's always about does it move relatively speaking, can I make up the spread and be profitable, it must move NOW, always looking to make dollars, trading within the rules and preferably with the market.
Also, consider having a larger basket than what you see folks talk about in this forum. Concept of trying to trade the same 6 to 10 stocks year-end and year-out is outdated. Most successful, professional traders that swing trade with 3 to 10 day expectations have 200+ stocks. I read books on folks having 400+. Some of these go through the entire list each night. They know within 3 to 5 seconds of the chart coming up if a trade within their rules will present itself in the coming days. There is a hint there. If you look at a stock today and know a trade will not setup in the next few days, is there any reason to look at that stock over the next few nights? Have a way to narrow down your list. Anyone familiar with recent teachings knows there are ways to narrow down the list to a more manageable number. You might have the same 8 to 10 great movers on your watch list all year but the remaining list will probably change. Having a larger number affords more opportunities, keeps you from being married to any one particular stock, and prevents you from forcing trades on stocks that have gone dormant. Best of luck!
NCT
Edited 3 time(s). Last edit at 11/18/2017 12:51PM by NCTrader.