RE: Patterns It is true numerus, hedge funds, mutual funds, pension funds and so forth follow company guidelines not to hold or buy stocks below 1 $ and sometimens the guidelines are below$2. This is another advantage the retail investors have, to buy before the big boys get in and drive the stock up. but this is also more risky because the stock might go to zero. The big boys, because they have a lot of money, can buy high and sell higher and if their plan is to invest half a million shares they buy at, say 1 $, one million shares and when it hits $ 1.50 they sell 500million and they reduce the cost base to 75 cents or the price at which the retail investor bought the stock with higher risk. So the small investor, if he/she is going to compete with the elephants must buy the stock low and sell high which of course implies higher risk with the penny stocks.