I have over 15 years of experience trading in the stock market. My expertise is in discovering low priced, depressed, and deep value stocks. I have a strong understanding on how these stocks trade and understanding of the catalysts that creates interest in stocks to trade higher. For small investors, the potential for repeatable high percentage returns is the greatest in these stocks. It is much easier for a stock to go from $1 to $2 than for a stock to go from $50 to $100; the percentage return is the same.
Catalysts may include a new product or technology, undervalued assets, improvement in earnings or margins, new management, acquisition by a large company, or the emergence of a sector currently receiving little investor attention.
I use charts to help me identify when interest is increasing in stocks that I believe to be promising or undervalued. Cup and handle, and saucer chart formations provide the highest degree of predictability in identifying when a stock is transitioning from being unwanted to being wanted.