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Hate to tell you, chances are if it ended up on the grey market that is where it will stay. I have a had a few of those and they never returned - not saying it happens all the time but in my experience it was not good.
It was halted for 10 days a while back and I don't know where to look to see the outcome of the investigation if any currently being traded in the grey market.
Short selling is totally legal and although some people say it is "Un-american to bet against a company," it is actually something that keeps the market liquid. There are actually mutual funds that long-short stocks. There are ETF's that are only for short sales - like DZZ that shorts gold. Offshore short accounts are used outside the US because they aren't held to the same SEC regulations. The legality of what they do and how people get around this I don't really know about.
From what I've read on this site shorting is done in offshore accounts outside of the us. Why is this allowed?
Shorting is illegal? There's be a lot of people from Ihub in jail if that were the case.
If shorting is illegal why is it allowed to go on?
That is a very general question. What do you mean "come back?" Is the stock halted? Or have there been allegations that the sec is investigating and it just dropped and you are referring to the pps.
The bid must be at .0002 to sell. If the stock is at .0001 look at how many shares are on the ask at .0002 by looking at level 2.
Many .0001 stocks have 300 million + shares at the ask for .0002, you can place your order to sell but it could take weeks or months till someone buys your if there's low volume for that stock.
If I'm trying to sell at .0002 does the ask have to be at .0002 or the bid?
What is the average length of time it takes a company to come back fron a sec violation if it ever can?
In basic terms it indicates that a stock could either move up or drop if these levels are broken. You ever watch a stock where there is a load of trading but it stays at one price and doesn't move up? That's the resistance and usually when it breaks that you see a good move upward. The same goes for a stock that goes down - you don't want it to break its' support level. If it does, there could be a substantial drop. The last poster recommended youtubing it. If they have videos on it that would be a good idea. There are loads of sites you can google to get more of an in depth answer.
Type support and resistance levels on YouTube you will find your answer
Can someone explain support/resistance and their different levels?
I have used about six different brokers over the years and I have decided that it is best to stick with a major company than trade with a small firm. These small firms may have some nice perks like low commission fees, but if you are a very active trader you will eventually run into trouble.
Etrade and interactive brokers are pretty good and less subject to conflicts while no prop desks. Jimho for active traders
Avoid fidelity if serious trader while they have one of the most active prop desks in my opinion and will raise margin requirements to force you to sell so they can buy for some big clients jimho
Etrade is very good with penny stocks and one reason is because they have their own clearing. Non of these stupid rules about minimum shares, no dtc-eligible (only a very few), no worry about whether there is little vol as with apex. Ameritrade isn't bad either, but I haven't used them in about three years.
What is a good broker to use for penny stocks? I currently use charles schwabb but am finding that the limit of 999999 shares each trade is going to cost me a lot and is going to be cumbersome especially if i want 20 million shares or more. Is there another major and reliable broker out there thats better for penny stocks. Im looking at etrade but was wondering if there were any other options i should look at. Thanks
Does the volume of shares shown usually reflect bought or sold or both?
Both
Also where is a good place to find the float of a stock? This is the amount of stocks still outstanding correct?
No, it is not. It is the outstanding shares minus the restricted shares. You can go here to get free into: http://www.otcmarkets.com/home
enter the ticker and then on the left side click on "company info" - they sometimes will show the float. Remember that these figures are only as recent as the last filing.
Does the volume of shares shown usually reflect bought or sold or both? Also where is a good place to find the float of a stock? This is the amount of stocks still outstanding correct?
Here is something I learned the hard way. Look at the balance sheet. Some companies issue more than one class of stock. Some of these issues may present a large liability. I am not saying don't buy these companies. Any companies stock can go up. Any companies stock can go down. Any companies stock can become non tradable. I have made money in stocks in companies that were non existent. I have not found one rule to follow that works everytime. It is very bad to find out about a risk that you did not know of first hand. Some of these shares may be redeemable in cash at a certain time thus stressing the company. Investing and gambling are one in the same. Stocks do not always work logically short term. Charts can be helpful. I feel if you are not buying proven companies long term. Then you are gambling more. I like gambling and do not mind risking some money as long as I think I am aware of what can happen. The bottom line is if you buy stocks you can lose all the money very fast. You can win a pile too. I have lost way more than I have won gambling. Taking a chance is fine just don't bet the whole farm on one no matter how good it looks. Diversify. Prove everything twice cuz it still might not be real. Never know whats hideing in the closet or the attic. Probably should not buy a house with a bad septic system. Unless of course you get a deep discount. Then again You might enjoy repairing it. We might live in an infinite universe. Unfortunately exploring it all takes more time than I have. Basically think long and hard before buying. You cant prove anything without a test. Each stock has a character trait you might exploit. Study it well and learn them if you really want to make money. All trends change. Changes occur we don't expect. All free advice is worth its price . Knowledge costs money. How and when to apply it ? Tell me
trading is in my blood, meaning I can't get it out of my system
family not involved in the market
I don't short so I won't be giving you any advice about that. You said trading is in your blood, I take it your parents? Maybe you should speak to someone in your family for some advice too.
Bounces, Shorting, Breakouts
Bounce plays as your major focus... interesting. I've been looking into that.
Also considering shorting after major breakouts for stocks $5 to $10. I know shorting is very risky, especially with short squeezes. However, I like dealing with stocks that have already moved/broken out (no waiting game), then trading on their likely pullback.
My past trades, however, have been momentum trades for breakouts. But I think my mistake was buying late into the move and then getting out during head fakes, only to see the stock go back up. (fakes are the most frustrating!!)
Hey, maybe I should consider a 3 trade succession for volatile stocks... breakout, short, then bounce. -- If only the stock would agree to stick to the program. --
I wouldn't mind trading all day. The only reason I haven't put off my other projects is because the trading hasn't paid off yet. Of course, I'm just beginning. So, I'm trying to find a balance between the two as to time.
By the way, when I mentioned "seasoned trader," I meant in terms of experience, not age.... lol.
You are describing two different type of scenarios. One must decide if they are a trader or an investor. If you are an investor, you will buy stock with dividends as you mentioned. A trader doesn't care about a dividend - only might want to know when a stock goes ex-div because they sometime dive after that. A trader is so short term that they aren't afraid of buying a bk stock for a bounce. Some of my best trades ever were from bk companies but I don't recommend them to anyone who doesn't understand them. The majority of those bk stocks leave the commons with nothing and if you don't understand that you can get royally screwed.
I guess you can call me a "seasoned trader" since I've been doing online trading since 1996 - before there was point and click - we used terminal and codes to place orders. Seasoned trader sounds nicer than "old" because that's basically the same. lol
Anyhow, take it from the "old" trader here. I started out online trading as an investor in the beginning buying blue chip stocks. Then I found pennies and became an exclusive penny stock trader. Penny stocks trading has changed drastically over the years. The promos, hype and frontloading are out of control these days. Not to mention the NON-DTC eligible stocks. That's new. You have to beware what you are trading and what broker you are using with these non-dtc companies. Choicetrade for example allowed me to buy these equites and then wouldn't allow me to sell them once they became non-dtc eligible. The penny market has become a huge scam and personally, I don't advise newbies to try it. I still trade them here and there and you can make a lot of money on them, but it isn't as easy as it used to be. Too many pump jobs and groups preying on people who don't have a clue. I now trade mostly bounce plays and I personally like the 1-20 buck range. On our board we use scans that alert us to the huge droppers and try to find the bottom for a quick bounce. This is predominantly what type of trading I have been doing for the past few years.
I believe that if you are trading you need to be doing it all day. It is difficult to trade actively and have another job - that is unless your job allows you to monitor things while you work.
Trading stocks successfully takes skill luck learning and instinct born into you. If you got the right combination of these traits you should be able to stay at the table along time. I think buying stock long term means tradeing for years not buy and hold. I have bought companies that really looked good . They went down the drain.One example is Six Flags. Amusement parks. Lost it all there. I did not own KODAK but if you got in late on that you suffered. Look at how many stocks have done well. Many others have failed. Some recently. I suggest buying companies that make money. A dividend payer is a plus. Of course you can gamble on subpennies when the mood strikes you. I own a few all losers at this time. I have made money on some though. I also suggest caution. I might say don't fall in love with a stock. They can turn real bad real fast. I think cutting your losses is a good idea . I have however sold stocks at a loss and seen them go up later. I have sold stocks at a gain and seen them fall way down too. Probably just luck. Might be a good Idea to risk some capital in the emerging market sector. I have noticed some Brazilian stocks getting punished over the last couple of days. Of course you don't want to catch a falling knife. Funny thing about stocks is that there is a good one right around the corner. You just got to get the bus to stop close to it so you can ride the bull.
Thanks Randall for your advice.
I hear regularly from seasoned traders that day trading takes years to master. Especially when you consider that trading is mostly a solitary endeavor for most of us, and we don't automatically share our experiences. That's why I'm so thankful for the boards and the advice that can help shorten the time to mastery.
So I will be devoting more time to learning about all risks involved (sub-pennies & day trading in general), and to cater a strategy to my lifestyle. It seems that no matter how seasoned a trader may be, he will always be fighting a battle with the market. And then there is the "smart money" that controls so much of it, and the SEC and other agencies that allow so much fraud....
I guess I am a bit impatient, but I'm improving in that dept.
Trading has been in my blood, so there is no stopping for me. I'm still seeking a strategy for my personal threshold. Then,... like you said, "Make rules and follow them."
If the company does a reorganization, your broker is likely going to slap you with a fee. I know of a couple that charge $20.00 That was a risk I did not know about trading shells and financially troubled companies. That is mostly what you find in stocks less than a penny. You can make money on them if you trade them correctly or so ive heard. I just cant figure out how to trade them correctly all the time. Ive been playing this game since 2008. Ill catch up one day I hope. Still feel its the best game in town. Just got to make rules and follow them. Don't buy companies that decrease their dividend shortly after you buy it. Don't buy companies that go bankrupt.Dont believe anything any one tells you. You can lose on any stock you buy. There are no definites. Most of the information you find is bogus. You need a little luck. The market follows no known logic. I think that if a company makes money and its amount grows plus it pays a dividend youll make money in its stock. Of course you can buy into one just before the herd jumps on and you might make money then too. You can even make money in known fraudulent companies if you do it right. Just depends on how much growth you are after. Me I want all I can get. I am still at the table. I have studied extensively. I have bought winners. I have bought losers. One thing is almost certain a stocks price will change regularly and irregularly.
Want to maximize returns with smallest uptick with smallest amount of capital and smallest amount of trades.
Also, want to do what only a small part of day trading community does. I sometimes think that what everyone else is doing (pennies 50 cents to $5) is long-term not profitable. At least, that's what I keep reading as to 90% of day traders losing money. And to not trade with the herd (even though the triple zeros require a herd in a way).
Plus, I tried a few of those 50 cent to $5 trades and results were dismal - getting late into the momentum (assuming I can find a moving stock before it's run is over), dealing with whipsaws, and never truly knowing the direction for even the next 1-2 minutes. Even my trading of basic option contracts long term is not where I want it to be.
I told myself, why fight for the 10 to 50% trades if I can focus on a 200% trade when the .0001 goes to .0002 (not to mention if it goes higher). Plus, I am not glued to the screen as much, since I have other things going on as to income/business setup. I'd feel comfortable with limit and stop orders.
Of course, I know it comes with more risk, but I thought I would just have to learn all the risks involved, establish a strategy, and go from there.
Why is it that you are so interested in triple pennies? Lack of funds?
You make a lot of great points...
Points I did not consider as to the spread for triple zeros.
As to the R/S announcement (or lack thereof), I'm surprised the powers that be allow this to be the case for the pinkies.
Well, it seems I've still have a lot of details to learn.
Will check out the R/S and the other boards.
Thanks.
I assume the R/S have to be announced by the company weeks ahead of time to the shareholders (though I have to confirm this).
Nope, not true. If the stock is trading on the otc and they are a filing company they will first come out with a Pre14 alerting that they are requesting a reverse and then a 14 will follow announcing the reverse split. With stinky pinkies they can wing it on you any time. The only way is to watch that board I linked to you or to go to the daily list yourself everyday and watch it.
Another thing I hate about triple zero plays is the spread. I would only try buying on the bid which means you are not guaranteed a fill but if you buy on the ask, the spread between the two is risky. Say you buy a stock .0001 x .0002 at the ask. Let's say you hypothetically buy one million shares. You just gave them 200 bucks and if you need to sell it you lost 50% of your investment. When you trade a double zero stock, the spread isn't that large. Because there are more digits to the right, a stock could trade say at .001 x .0012 - you see the difference?
still trying to develop/find my strategy...
I am new to day trading and am still trying to develop/find my strategy. I welcome all the advice I can get. Please don't hesitate to make my business yours... Thanks.
I read a couple threads about the R/S issues. How they give you a decline in profit percentage potential per uptick, how the stock sells off on the announcement, and an instant loss when the stock settles.
My goal is to buy in when all indications point to the run - definitely before the run and try to avoid all R/S's through stock research.
I assume the R/S have to be announced by the company weeks ahead of time to the shareholders (though I have to confirm this). So I figure... 1) My due diligence would weed out those planning an R/S. 2) And I would update my already placed sell limit order to sell at breakeven if details change - fighting to beat the sell off. 3) Plus, I will try to be in the trade for less than a month, using less than 10-15% of my trading portfolio.
I will read up on the R/S board. I'm sure there are more kinks in my plan. Thanks for the advice.
I know it is none of my business but you really should think twice about trading triple zeros - especially ones that trade at .0001 x .0002 - they are primed for reverse splits, and when they do rs they are huge ones. Take a look at the rs board:
http://investorshub.advfn.com/Reverse-Splits-3017/
the huge ones are always the low triple zeros. And then after the rs, they get their outstanding down to a decent amount, they just start diluting all over again and then reverse split again - rinse and repeat. It is a legal way to rip off current shareholders.
thanks again for your insight
TA = Transfer Agent - if you can find the TA and get the current outstanding from them and the last date. The financial sites list the last current filing that they have (not "outright lie" - just old information)- so most of them are not up to date. Even with penny stocks that file every quarter, you could see an outstanding that was posted as of last month, but they could have hugely diluted between then and now. The TA is really the only reliable way of getting the count and some of them don't give restricted amounts so there is no way to know the float.
ideal float range for triple zero stocks...
Cintrix, thanks for such a quick reply.
As to your answer.....
TA? Trading Assistant?
Are you stating that when I see a triple zero's outstanding and floating stocks amount on a financial site, that it may be an outright lie? I thought those numbers would be monitored by the OTC exchanges and the SEC.
Also, I'm thinking there has to be some guideline if I see current high volume on a .0001 that I believe will run soon. (I would not purchase a triple zero that has no bids and adequate volume.) If a financial research site states that a triple zero has 6 billion shares, is that "too much," average, etc. vs 20 billion shares for example?
With penny stocks (50 cents to $5), I was told to day trade under 100 million float. So I was wondering what the guideline/range is for the triple zeros that have much larger floats.
Of course, I will assume reality may be different, but at least I need guidelines when researching the stocks.
Please clarify your comment.
ideal float range for triple zero stocks
that's an oxymoron if I ever heard one - "ideal float / triple zero"
Most of those triple zero's trading at .0001 are not filing so there is no way you will know the real outstanding unless the TA can send it in writing to you.
What's ideal float range for triple zero stocks??
What should the ideal float range be for triple zero stocks, especially $.0001?
I notice many triple zeros have billions of shares.
If possible, please also give numbers for ideal outstanding share ranges vs ideal float share ranges.
If you didn't sell the stock or deem it "worthless security" within the same year as your gain, you can't use that loss against your gain. You need to have proof of the loss. If you made 30k on a stock and didn't do anything with the other one you have to pay the taxes on the 30k.
I have a question about capital gains tax. What if I made a profit of 30k dollars in one stock and reinvested it into another stock. What if the new stock I invested in went down to 0 dollars but I was unable to sell the stock before end of year. Would they still require me to pay the capital gains tax even though i technically made no profit? Thanks
I am new to trading and I use TDA, they have been most helpful...even gave me couple of free trades out the blue, for no reason *smile*
I concur with using Schwab .... great site and iphone app as well imho.
I used to use Quicken to enter all of my trades but now that they require brokers to keep records of cost basis (as of 2011) I find no need to keep those records unless it is a transaction that my cost basis was before 2011. In terms of figuring your taxes you could probably use something like this:
http://www.calcxml.com/do/inc06
and plug your totals in. Doesn't your broker keep an capital gains (realized and unrealized) schedule for you as you go along? I can access this any day I need it thru Etrade.
Is there any free software/already made spreadsheet that can be used to keep track of commissions, capital gains, and gives a rough idea of taxes. Figured I would ask before I just use Excel and make my own.
or if it is under the exclusion rate, right? $250,000/$500,000 exclusion
Ok thank you. I know for real estate you don't necessarily have to pay taxes until you do not reinvest.
You pay taxes on capital gains no matter where you reinvest the gross proceeds.
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