Trading Lesson #2: Do not trade stocks that are purchased in an all cash transaction. There is very little intra-day movement.

Here is the chart for BCSI on December 9th 2011. It spent almost the entire day in a 5 cent range. Not exactly a treasure trove of opportunity for directional traders.

Steven Spencer is the co-founder of SMB Capital and SMB Training and has traded professionally for over 15 years. His email is [email protected]

Disclosure: no relevant positions