What is the difference beween bid and ask? Also say a stock is at .10 and the ask is at .15 does this mean the future looks bright for that stock?Thanks
Posted by Hannibull on :
it means the market maker is bidding 10 cents for your stock if you own stock, ask means the MM (market maker) asks 15 cents if you want to buy his stock, it's in no way an indication of the stock's future however!
Posted by Squire38 on :
I love gambling, I bought 4.5k of ECCI at .11 a share, what's youre thoughts on ECCI, could they be used in NY(flood situation) for their water fultration system?
Posted by The Bigfoot on :
(?raises eyebrow?)
The Bid is what investors or MM's want to purchase a stock at. These numbers show the bottom level of the current spread.
The Ask is what investors or MM's want to sell a stock at. These numbers show the top level of the current spread.
The area in between the bid and the ask is called the spread. The size of the spread can hint at how a stock is going to trade but Bid/Ask can change at anytime given market conditions. Just because there is a large spread between the bid of .10 and the ask of .15 doesn't mean good things for a stock.
It could equally mean that no one is willing to pay high prices for that stock and you are headed into a tumble.
Or it could mean that there is a diverse opinion of this stock and it is going to be very hard to find an exit point without sacrificing your gains.
Bid/Ask is good to watch through out the day but it by itself is will give no determination of the value of a stock.
The Bigfoot
Posted by The Bigfoot on :
100stacks...
I strongly encourage you to do some reading and paper trading before you continue trading in the pennies. Your question raises a large concern from me that you are not yet ready to be putting money into the market!
The Bigfoot
Posted by 100stacks on :
Say the bid is .10 and the ask is .12. You can buy that stock at .12, but if you own it and want to sell you can get .10 a share, correct.
Posted by Squire38 on :
quote:Originally posted by 100stacks: I love gambling.
Send me your money, I may or may not give you more than you gave me. I may give you back 125% or 10% of what you gave me. Sound good?
Seriously though, gamblings fine, but at least learn the game as much as possible before throwing the money down.
Posted by 100stacks on :
Bigfoot you are correct but I'm just trading one stock ECCI, I bought it at .11 and set a sell limit on it already, I have enough funds to hold it for a few months, Either I triple my profit or lose a few thousand right.
Posted by The Bigfoot on :
In theory only.
I often buy at bid levels from folks who are looking to sell.
I often sell at ask levels to folks who are looking to buy.
I often trade somewhere in the spread depending on how the stock is playing.
........this is pretty elementary stuff Stacks...
Not meaning to insult your intelligence or anything but I don't think you are ready for this stuff yet bud.
The Bigfoot
Posted by BULListic on :
I would have to agree with Bigfoot, fortunately you threw a small amount of money at this stock, so plenty of time to learn, but buying anything w/o knowing what those two terms meant means a little more education is needed. GLTU and let's make some money....one last note on the bid and ask though...you don't always have to pay the ask, put a limit order in at the bid (become a professional bid-whacker like the rest of us) or between the bid and the ask...if the order doesn't take, then move up to the ask...of course in a fast moving stock this may not work, but always worth a shot.
Posted by Hannibull on :
quote:Originally posted by 100stacks: Say the bid is .10 and the ask is .12. You can buy that stock at .12, but if you own it and want to sell you can get .10 a share, correct.
correct, but your order will not necessarily be entirely filled. I agree with the others though, paper-trade, look at your watch list and see how stocks are traded, read as much as possible! Why gamble if you can actually make money? Everyone was a beginner at some point Posted by 100stacks on :
I already own 41,400 shares of ECCI at .11 a share. I set a sell limit at .30, so once this stock hits .30 I make 8k.
Posted by BULListic on :
Well Stacks, I was going to cut you some slack, but when the math goes haywire, the bean counter in me has to blow the whistle...."Either I triple my profit or lose a few thousand right." Well, you only paid $495 plus commission for the stock, if you lose a couple of thousand, either you 1) paid $1500 in commision, 2) shorted the stock to have unlimited downside, or 3) flunked math in high school.
quote:Originally posted by 100stacks: Bigfoot you are correct but I'm just trading one stock ECCI, I bought it at .11 and set a sell limit on it already, I have enough funds to hold it for a few months, Either I triple my profit or lose a few thousand right.
Posted by cottonjim on :
100, if you are going to sell your stock you ASK for x amount of dollars but the MM's set the current ask that in no way implies that you are ging to be able to sell at the ask but you can probably buy because the mm's are selling at that price. When you are trying to buy a security you BID x amount of dollars, but the same rule applies.
Posted by 100stacks on :
Bullistic c'mon I estimated (I don't want to put my sell limit out for everyone to know), everybody on here is telling me to paper trade (boring). Their correct I know little about stocks, but I a learnig more and more each day and I'm good with numbers.
Posted by Squire38 on :
quote:Originally posted by 100stacks: I already own 41,400 shares of ECCI at .11 a share. I set a sell limit at .30, so once this stock hits .30 I make 8k.
I haven't research ECCI at all, but based on the last 10 day chart (assuming I was dead set on buying this stock), I would have tried to buy at 0.1025 and sold at .1150 for a 12% gain.
Personally I think there are better plays out there, but it is my own opinion.
Posted by The Bigfoot on :
Your call man...I don't want to tell you what to do. I don't look good in an apron.
Just tellin you my opinion.
GL
The Bigfoot
Posted by 100stacks on :
Quick question, I own 41k of ECCI I set a sell limit for .30. If this stock starts doing good and goes over my sell limit it will automatically sell, correct.
Posted by cottonjim on :
Your order to sell will only be executed if somone buys it.
Posted by BULListic on :
Stacks, my point is that you said "I love gambling, I bought 4.5k of ECCI at .11 a share" which is $495 plus commissions....you can't lose more than what you invest, so you can't lose "a couple thousand"
quote:Originally posted by 100stacks: Bullistic c'mon I estimated (I don't want to put my sell limit out for everyone to know), everybody on here is telling me to paper trade (boring). Their correct I know little about stocks, but I a learnig more and more each day and I'm good with numbers.
Posted by The Phat Man on :
quote:Originally posted by 100stacks: Quick question, I own 41k of ECCI I set a sell limit for .30. If this stock starts doing good and goes over my sell limit it will automatically sell, correct.
dude... not crackin' on ya... but really, with these questions you should hold off doing real trades for awhile until you've educated yourself more via the billion stock trading educational websites on the internet while paper trading as you learn. save yourself some money and jump in the game for real when you have at least the basics covered (ie. difference between B/A and how to play the spread for starters)
Posted by The Phat Man on :
also, how'd you get 4 stars without knowing the B/A?!? LOL (just havin' fun, no offense intended :-) GLTY
Posted by shoot-the-messenger on :
I'm confused. One post says you have 4.5K and another 41K. Which is it?
Posted by 100stacks on :
Stacks, my point is that you said "I love gambling, I bought 4.5k of ECCI at .11 a share" which is $495 plus commissions....you can't lose more than what you invest, so you can't lose "a couple thousand"
Bullistics what do u mean $495 plus commissions, do u mean if I sold now at about .105 a share?
Posted by 100stacks on :
Sorry messenger I own 41,400 shares at .11 a share I invested about $4550.
Posted by cottonjim on :
Which is it, 41000 or 4500? now were all confused.
Posted by Squire38 on :
quote:Originally posted by 100stacks: Sorry messenger I own 41,400 shares at .11 a share I invested about $4550.
You threw down $4550 without knowing what the bid and ask was? HOLY CHIT!
Can I give you a couple of my bags?
Posted by shoot-the-messenger on :
Ok For a sell limit of .30, thats about an 8K profit if it goes through. Should it ever get that high. GLTY
Posted by 100stacks on :
In all reality I can afford to hold my 41,400 shares of ECCI for months. I'm hoping it hits the same cylce it hit in Sept.'05,.
---------------------------------- Other fighter's don't take chances -Roy Jones Jr.
Posted by cottonjim on :
GLTY 100
Posted by 100stacks on :
Thanks even though you don't meant it.
Posted by madmoney on :
100stacks : doing a little quick checking on this company, not half bad for a pink, low O/S, fairly low defficet for a pink, aquired patents for water purification process, i have seen worse!, you might do O.K. with this, a good PR and some attention from investors and it could move!. good luck!
Posted by BULListic on :
DUDE
4,500 shares times $0.11 a share = $495...I'm starting to lose my patience, I might have to go over to Raging Bull to amuse myself this afternoon or just look up a case of Blatz and call it a day. I will say this, if you are playing all of us for a laugh, it's damn funny, if not, your damn stupid, either way, have a safe and fun 4th.
quote:Originally posted by 100stacks: Stacks, my point is that you said "I love gambling, I bought 4.5k of ECCI at .11 a share" which is $495 plus commissions....you can't lose more than what you invest, so you can't lose "a couple thousand"
Bullistics what do u mean $495 plus commissions, do u mean if I sold now at about .105 a share?
Posted by 100stacks on :
Thanks madmoney, like I said I can afford to hold. Hopefully it hits Sept'05 cycle, also I think it's a bottom bounce play to. I don't think it will go much under .11.
Posted by 100stacks on :
4,500 shares times $0.11 a share = $495...I'm starting to lose my patience, I might have to go over to Raging Bull to amuse myself this afternoon or just look up a case of Blatz and call it a day. I will say this, if you are playing all of us for a laugh, it's damn funny, if not, your damn stupid, either way, have a safe and fun 4th.
I have no idea what you're talking about $495 commissions, could u explain?
Posted by Hannibull on :
no stacks, he thought you said you owned 4500 shares, when really you have 41,400 shares. He thought you invested $495 (4500 times 0.11), has nothing to do with commissions. The commission you pay is the fee for each trade you make, usually between $5-$15, depends on which broker. I don't want to scare you, but it WILL hurt if the stock goes down (not saying it will, I don't know I'm not followin this particular stock), even though now you say it's just a gamble. Just because it's made a pattern doesn't mean it's a cycle that will repeat. I can understand that some people frown, just remember you CAN become good at this, just study hard! be dedicated! you can do it!
best of luck to you
Posted by T e x on :
lol, can't decide whether this thread should be deleted--or bronzed...
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