posted
I need some help getting out of this one...
Let me give you a litle background. I'm in Calgary, Alberta (from what I've been told, the day-trading rules don't aply in Canada), and I decided to try my hand at trading.
I paper traded for 3 months, and decided on OTC penny stocks. I seemed to be very good at it, but wasn't convinced. So I took the next step and signed up for a demo account with Tradefreedom and started using their platform to simulate trades. EVERY TRADE I MADE WENT THRU, I WAS AVERAGING $10000/DAY!!
Needless to say, I was excited enough to open an account with Tradefreedom and deposited $5000 to start trading.
This is where things go bad. I buy 20000000 shares of AUGC at .0001/share with the intention of selling it at .0002/share for a 100% profit just like I did time and time again in the demo version. Turns out that day after day my sell request is ignored by the MM. He will only buy my shares at .0001/share even when the stock is selling millions of shares at .0002/share.
How do I sell my shares at a profit if the MM ignores my sell requests??
posted
Suppose there are 20 people trying to sell 1,000,000 shares each .0002, and you are one of them. Suppose further that 10 people want to buy 1,000,000 at .0002.
If you are one of the first 10 in line, you get your sale. If you are one of the last 10, you don't. The MM's are not ignoring your order, it's simply not your turn yet.
In paper trading, there is no line. You can buy at the low and sell at the high. In real trading, you have the other traders to contend with and just because a stock hits a certain price doesn't mean you can trade there. I don't know how the demo handles this but I assume it ignores the problem just as paper trading does.
What you need to do is set a GTC (good till cancelled) order and walk away. Check back periodically and be patient.
And never put all your money in one stock. NEVER! NO MATTER WHAT!
Edit: Alternatively, you could sell some/most/all at .0001, eat the commission and try again with a different plan. The truth is, you're not in trouble here, but soon enough you will be--the learning process is brutal.
-------------------- Me Trade Pretty One Day.
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posted
Yes to the first Q, No to the 2nd. If you do a daily order each day, you start at the end of the line each day. If you do a GTC order and let it ride, you start at the end of the line, but move up as trades happen and hold your place between days.
It could take a while--a stock that vascillates between .0001 and .0002 is going to have a lot of people waiting to sell at .0002.
-------------------- Me Trade Pretty One Day.
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posted
I wouldn't take a vacation just yet... just because you put a GTC order for .0002 doesn't mean the stock won't make a U-Turn while you are waiting for your order to go through.. anything can happen in pennystocks and it could go into a downtrend all of a sudden.. if I were you I would try trading in higher priced Pennystocks that trade on NASDAQ or even stocks that are $5 and over as well... also the problem with papertrading and/or demo accounts is that they take out the Emotion factor and you might hold or sell a stock more or less then you would if you were trading with real money....
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