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Bouncing Stock
This is a stock that trades between two price points over a period of time. This type of stock may be viewed as going nowhere. If for instance the stock ranges from 11 1/2 to 15 over a 4 week period then back to 11 1/2 you would buy at 11 1/2 to 12 and sell it at 14 1/2 to 15. This will capture a net of 3 or so dollars each time it bounces. This is sometimes called rolling stock, or channeling. |
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