Im very new at penny stocks, and ive been watching stocks like QBID,SVXP, and a few others that go from say 0.0003 to 0.0004 many times in a day. This looks like a great way to make some good money with very low risk. My question is, are people really making money doing this? I have a trading account with Choicetrade. Say i buy in at 0.0003 with a limit order, and set a stop order at 0.0004. Could'nt i make some good money doing this a few times a week? Or is it easyer sayed than done? Any information any one could share on this subject would be greatly apprieciated.
Posted by BuyTex on :
no--this is asked time and again; hence, my INSISTENCE on newbie thread that answers these questions as a reference. lol, still don't have that forum...
To answer your question, bh66, look at bid/ask--NOT last price...
ALSO--Traditionally, no one could short pennies except MMs--although there was some spec that one broker was heading that way, ie, allowing traders to short pennies. But I haven't kept up with that--would be good to know if that "passed muster."
Posted by bargainhunter66 on :
I thought as long as i placed a limit order at the price i want to buy in at, it would go throw sometime or another that day.
Posted by BuyTex on :
limit order goes through *if* it can be met:
1) maybe you already missed the ask
2) maybe your block size is too big...
all-or-nothing order?
I suspect you're confusing "limit order" with "all or nothing" and/or "good till cancelled" orders...
Posted by bargainhunter66 on :
I have not even added funds to my account yet. Im just trying to learn a few things first, and see what others have to say about this strategy. What block size do you think would be good to start with? I will have $2000.00 to start with.
Posted by Machiavelli on :
$2,000 is enough to start with but never put a majority of your bankroll in any "one" stock... at the maximum put 33% (1/3) if you feel strongly about a stock... also read as many books on trading as possible and experiment to see what works for you... i can make book recommendations but it would be a lengthy list... try to do a search on book recommendations i have made in the past... just click on Search at the top of this bulletin board and put my username in the right area... and use keywords like "books" etc... right now im reading Trend Following by Michael W. Covel.. very good book but the trading style is more for someone who can monitor the market on a daily basis (no it's not daytrading) of which I don't have so i tend to swingtrade and look for stocks at night after market hours or on weekends... and always always put STOP/LOSSES on your stocks... limit your losses and let your profits fly... Choicetrade allows this on pennystocks (yes micropennies as well) .... hope this helps...
Posted by bargainhunter66 on :
Thank you BuyTex, and Machiavelli for answering my questions. I have one more dumb question to ask. Ive never been very good at math lol. Say im ready to trade on QBID. Do i type in my buy, and sell order at Choicetrade like this? Buy at 0.3, Sell at 0.4? Or do i put 0.0003, or 0.0004? Or does it even matter?
Posted by BuyTex on :
oh, lordy, yes, it matters...
lol, do this *teensy* bit of math: say you buy 1,000 shares at .4, then sell them at .0003--good deal or bad deal?
Next: learn the difference between the pps, the bid price and the ask price. As a rule of thumb, you must plan on paying the ask price and selling at the bid price.