posted
When a stock is for sale at .0021, for example, am I correct in thinking that it actually costs twenty one thousandths (sp) of a cent? I don't wanna get in the game till I know whats going on. Seems like you would have to buy a million shares, at least, to get anything out of them. Would I actually get 21,000 shares for a penny? Thanks for any info.
posted
No that's not how it works. Math is not right. in order to figure the shares you take the amount of money you want to spend and divide it by .0021.
Here's an example $100/.0021=47,619 shares of course don't forget to figure in your fees for the trade.
Hope this helped. Read the infor in the education section here on allstocks. Paper trade to get the hang of it before you actually put your money out there. Pennies can be very lucrative but you can also lose everything very quickly as well.
A few quick tips that I have learned:
Never rely on people posting on this or any other board. If you read something research it for yourself to make sure it's true. Learn to do your own DD(Due Diligence=research).
Never buy a stock without have an exit plan before you buy.
Take your profit on the way up. These stock can plummet as quickly as they rise. Don't get greedy.
Never buy stock with money you cannot afford to lose.
Study, study and study. Paper trade until you make a consistent profit. Usually for 3-6 months or longer.
Ask questions there are many here on this board that are willing to help and share their knowledge.
Make your own decisions and never blame some else for your mistakes. Remember no one can force you to buy or sell a stock.
If you miss a stock that makes great gains. study it to figure out what made it go and learn. Believe me there will be others. Don't get upset and sulk use it as an opportunity to learn.
These are just a few basics There are so many more. Read the education thread and go to the sites that are recommended. Buy and read the books that are recommended. Patience and disciple are the keys to success.
posted
Awsome, thanks guys. Now answer this: what is the formula for calculating profit or loss. If you bought $100 worth at 0.0021 and it goes to 0.0030, what did you make?
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posted
.0030 X 47,916 = $143.75 you made $43.75 minus fees. You have to deduct whatever you are charged for buying and selling. With Scottrade it's $7 plus .005% of the total. in this example it would be $7.50 for the buy and $7.72 for the sell. total commissions paid is $15.22. That leaves you a net profit of $28.53.
Once again do your homework before trading. If you start trading and are unsure. You will surly lose your money. Paper trading is the way you become accustomed to trading. Keep paper trading until you get it down. Don't get greedy and jump in too fast. It's very easy to lose all your money very fast.
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posted
You guys rock. Thanks for all the info. I'm still a long ways away from using real money, I'm setting up a foundation to work off of right now. Thanks for the knowledge.
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1 share of something at $400 4 mil. shares at .0001
Price goes up 100%
Either way you make $400 - commision/fees
Chances of getting a 100% jump is probably better for the micro, but the risk is much higher.
Chances of being able to sell at you desired price would probably be better for the higher priced stock also as it probably would have higher volumes.
But seeing as many trying to make a quick buck jump into the pennies, sometimes the above points are missed... especially volume. I've been doing some paper trading and have already held some "paper" bags as I've tested the waters a bit.
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posted
i understand what you mean.. as for papertrading.. on actual paper and not a software program.. im not a big fan of it mainly because it doesnt simulate well enough how trading is... like stop/losses for example.. since it isnt real $$.. what you do on paper isnt necessarily what you would do in real trading simply because the "real" $$ factor is taken out.. but anyways I would recommend you get a software that does papertrading because at least with that you can put in stop/losses etc.. just like if you were trading with real $$..... I do not know of any software program but you can ask the others.. or perhaps look on websites .. i think this site might have one:
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