if someone bought a penny stock and then it boomed can he sell it for sure if he wants?
i ask this because i heard that if the stock rise that doesn't mean u made money because u may n't be able to find a buyer .... can anybody explain pls and how to avoid this problem
Posts: 204 | Registered: Apr 2005
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posted
only buy stocks where these is liquidity..(reasonably high volume). An example (QRVI): this stock rose 100% last friday..yet all on a volume of only $ 400!!! So, it basically doesnt mean anything..and even if the account shows double value...if there is no buyer..then nothing happens....
Posts: 218 | From: Grungteb | Registered: Nov 2004
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I don't know where you are getting $300 ... I am talking about the volume for the day, week etc.. not the price of the stock or that he is buying 300,000 shares at $.001... Definition of volume:
Volume: Equals the number of shares "Traded" for a specific time period. Volume is usually displayed as a histogram at the bottom of a chart.It gives important information to the technical analyst in interpreting price patterns.
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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quote:Originally posted by johnny14511: so you are saying if i have, for example a sell order of 1,000,000 shares for .0006 even though the bid is at .0006 i have to wait until somebody buys it for .0006 cant i just sell it back to the company?
johnny14511-- i think the point the gentlemen are making is that you need to adjust your footprint to the volume and 1 million is a good number for that. just don't be a big fish in a small pond-- the mm's will hook you. and no, well technically yes you could sell it back to the company if they feel like buying but that involves a lot of certified mail and time. in practice you would never do that. most of the time when you trade (buy/sell) you are buying from mm's or other traders. cash only goes to the company when it first issues the stock. and it may issue more from time to time
Posts: 229 | From: new mexico | Registered: Apr 2005
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quote:Originally posted by johnny14511: so you are saying if i have, for example
a sell order of 1,000,000 shares for .0006
even though the bid is at .0006 i have to wait until somebody buys it for .0006
cant i just sell it back to the company?
.0006 or better though if the stock is tanking you could get filled way below .0006 ... as for selling a penny stock back to a company... >>> LOL ... highly unlikely...
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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quote:.0006 or better though if the stock is tanking you could get filled way below .0006 ... as for selling a penny stock back to a company... >>> LOL ... highly unlikely...
posted
The higher the price then the lower volume is acceptable. The lower the price then higher the volume. For example if You were looking at a stock that traded at 50 bucks a share then a volume of 100,000 would be pretty liquid. If you are looking at a stock that is trading at .01 a share then you should be looking at a least a couple million or so. The exception is a low priced stock that trades at a low volume and news is coming or released that is gigantic for the company. If you were to get wind of the news early you could get in because the stock would soon see a great volume increase making it liquid. Just my opinion.
Posts: 539 | From: BIG D | Registered: Apr 2005
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