When you buy penny stocks what happens if you buy more stocks than whatever the volume is. For example; if the stock is at .0002 vol:45,163,420 and if i buy 60,000,000 at .0002 is there a high risk for the stock to go down
or any help on something similar you might have experienced or that you know
another question; what if you buy half or two thirds of the volume of the stock. is there a big risk?
or is that good money for the company to get higher in short term
What i do is buy low in a large quantity and sell a couple more points in the same day!!!!
any help that you can help me with will be appreciated.
BuyTex
posted
you're saying you buy $12,000 of .0002 pps stocks, regularly--am I reading correctly?
johnny14511
posted
yes 60000000*.0002=12,000
or something similar just an eample ^
BuyTex
posted
sorry, I just can't imagine throwing that much cash at a .0002 play, regularly...
How is that working out for you?
blue_in_MI
posted
i have to agree with BuyTex here, even if you're bill gates i have difficulty with the idea of throwing $12-grand at a .0002 stock.
but just to go along with you in the example - most .0002 stocks are very thinly traded. it's simply not possible for you to place a buy order for 60M shares without "moving the market". the MM's might fill you for part but then they'd start kicking the ask way up due to the buying pressure.
johnny14511
posted
what i do is as long as it goes up .0001 ill sell it that same day
not just on that example i posted. everything in general
BuyTex
posted
really?
how does that work on the bid/ask?
R1Man
posted
I did that when I first started day trading....Its very risky....I got hammered when one of those stocks had a 25,000-1 reverse split. The price was $0.0001 and after the split....the price was far higher but crashed back down to $0.0001. BE EXTREMELY CAREFUL!!!
If you have $12,000....why play with these stocks???? You have lots of buying power....for example you could buy a stock like JDSU at $1.75 having 6,857 shares and sell it at $1.80 and make $342. That is definately within the daily range and you can do that every 3 days. I do/did. Got burned this year pretty bad on GAXY(E). But I have made back 62% in the past 3 weeks.
What I do is watch the premarket stocks with nice volume and look at the order status...buy/sell orders and pick out my plays there. I target making $300.00 a trade or more. But it don't take much money to make $300.00.....it can be done pretty easy with just $2,000 or $3,000. I usually abuse a stock for 2-3 trades then I wash my hands with it. If you depend on a handful of stocks....you get quite bored and desperate. Try that method before you get burned like I did!!!
Your ways are very dangerous and usually the more risk....the higher the return...I would find a new method.
Also, to answer your question about VOLUME....
If you buy more than the Volume.....the price should go up....but DON'T EVER submit a order the same....next day with the whole number of shares bought....when traders see an order purchase for the daily volume....they get excited....but when they see someone try selling the whole average daily volume in 1 order...they get scared. Try selling small blocks....youhave to be on both sides of the fence to make money. Must have Cash free to buy as people who bought your shares goes to sell because you have submitted a new order and they get scared...then you snatch back your shares you sold them and they see large buying then you repeat the process. Having all your chickens in the same barn....only helps the wolf eat all your chickens at once.
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