New Horizon Aircraft Ltd.
Длинная

HOVR: Trading Sub-$1 NASDAQ Stocks (Fight Delisting Risk)

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Objective:

Profit from the volatility and potential rebounds of stocks priced below $1, often referred to as "penny stocks," while managing delisting risk.

Delisting Pressure

Stocks trading below $1 for extended periods risk NASDAQ delisting. Companies often act to boost stock price through:
  • Positive news announcements.
  • Mergers, buybacks, or reverse stock splits.


Even small price moves (e.g., $0.20-$0.30) can result in significant percentage gains.

Liquidity

Stick to sub-$1 stocks with sufficient volume (at least 1M shares/day) to avoid illiquid trades.

Diversify

Spread risk by trading multiple setups instead of concentrating capital in one position.

Applying the Strategy to HOVR

Situation: HOVR is trading below $1 on NASDAQ. Company faces potential delisting pressure but shows technical signs of a rebound.

Entry: Entered using a buy stop order around $0.48
Stop Loss: Set at $0.30 to limit downside risk.
Take Profit: Target $1 or higher, psychological resistance.

This strategy capitalizes on the technical and fundamental nuances of sub-$1 stocks while adhering to disciplined risk management.

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