Allstocks.com's Bulletin Board: Stop Losses regarding OTC and Pink's

This is topic Stop Losses regarding OTC and Pink's in forum General Investing Topics at Allstocks.com's Bulletin Board.

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Posted by gimmikk on :

Hi. I'm rather new to trading penny stocks and new to the board .

Been trading for about a year and just recently became interested in playing the penny game . The question I have mainly concerns acceptable losses (not that a loss is acceptable ) while holding shares in OTC and Pinks before the decision to sell at a loss comes into play . I know the risk/profit ratio is slightly different than playing normal stocks on Nasdaq etc. but when does the average penny player decide to sell at a loss..??

I looked over the board and haven't really been able to find any solid info on what the regulars deem to be a good guideline or rule of thumb regarding this issue . As for myself with regular stocks I have a higher risk tolerance than some. I have no problem holding a stock that happens to dip on me by 15% or so... if.. and I say IF , the company has a solid background or positive data for the upcoming short term or if the recent prices indicate that a retrace is more than likely probable. Then I have no problem holding a few days longer to regain what ground has been lost. Especially in a market with the current downtrend. What goes down will usually go back up.

I know day traders have one set loss guideline.. which is usually not below 2% or so.. if any loss at all. But being I don't have the current funds to allow day trading , and the rest of us usually have to play stocks with a buy and hold mentality.. of at least a day play or to a few weeks or months holding .

Anyway .. just curious as to what some find works best for them when it comes to Red days and at what percentage they decide to sell at a loss regarding the penny stocks.

thanks for the input.

Posted by Bob Frey on :

The spreads can kill ya.

But I allways try to keep it at 20% or less from the bid.

Posted by gimmikk on :

Cool.. thats about what I was figuring. Being that the penny's tend to go up and down sometimes with little warning at all. Figured it would be a little bit higher than normal.

The reason I was mainly asking was I'm down 25% on qbid. With no plans to sell at all. Actually considering buying more . But it just made me question about other stocks when they turn down on you.

for the record I tried to get into it @.0015 and sat and watched as over 95mil shares were traded at the price and ameritrade wouldnt give it to me. So I was little mad about it.. I decided not to try to get it again till it was bouncing on the 11th and right as I entered it .. went downhill immediately Such is the game.

thanks.