No Bid (0001 stocks)

 

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What are no-BIDs?

This message board is dedicated to no-BIDs.  First of all if you are a risk taker or a gambler at heart, then you may have come to the right place.  No-BIDs are sub-penny stocks, A.K.A. Trip-zero stocks, that have fallen to the smallest increment that everyday retail traders can trade only at the asking price at .0001; however, the bid is zero or near-zero.  You got that right, nothing, nada.  Your brokerage account might not even allow you to trade if it is on the do-not-buy list.  If you are looking for safer investments that make steady or near steady small gains, then you probably are not in the right place.

So why buy these stocks?  There exists a tremendous percentage gain for just a few ticks above the current asking price, and even sometimes +1,000% of gains can happen at times.  Should you invest everything you have because of the potential these no-BIDs have – of course not.  Are there any risks of just buying at the asking price – well of course there are.

Prices of stocks trade on the 1/100-th of a penny or what is called a tick.  A no-BID Trips starts at .0001 and then the next tick if the bid starts to form because of a rumor or front-loading or substantial business improvement is .0002.  Then on to .0003 and so on, up to .01 and even higher.  The first tick after .0001 is .0002 for a 100% gain, and sometimes it is difficult to get the stock price to that point; sometimes there are too many shares in the float, other times other investors just want out even at any price, and even toxic financing agreements with the company may have offered free shares that are being dumped in mass at the asking price.

But occasionally, a stock will trade above .0002 and continue even to .001 for a 900% gain or what is also called a 10-Bagger.  Once out of the no-BID situation, every tick is important to the trader that holds the millions of shares taken at the .0001 asking price.  Because every $100 invested at .0001 is one million shares.  Some sell all of them at .0002 (not too smart really if you have 10’s of millions) or a small portion of the shares to get some of the input cash back into the trading account.

There are numerous strategies employed to maximize profit and to limit risk, and this is up to the individual trader, and I suggest talking to others to learn strategies if you are new to this.  One simple strategy is to buy at the .0001 Ask a few million or at some level of comfort just in case it gets stuck for a long time.  For example XYZ Company, you buy $1000 at .0001 for 10 million shares and you sit on them until news or a tremendous rumor or buy-out possibility.  If it can trade between .0001 and .0002 and the bid at .0001 grows, set small sells at .0002, and .0003 and .0004 and try to calculate the minimum shares to sell to break even for what’s called going free.  In the above example you could sell 2 million at .0002, 2 million at .0003 and 2 million at .0004.  If it only trades at .0003 vs .0004 and falls again and your .0004 orders where the only ones not sold you would have sold out for about $1000 which would have been your input cash.  You would still have 6 million shares free.  I would suggest selling most if it jumps on no major news and even if a PR did hit, and take any news with a grain of salt.  From .0008 to .0014 sell around 50% of the remaining 6 million but never all; keep some 'just in case'.

Above was the good, now for the bad.  Usually, unless you pick the right one by pure luck, will sit at no-BID or possibly trade between .0001 and .0002 and even fall back to no-BID for a very long time – even years!  So, trade only with money you can afford to live without for some time just in case this situation happens.  Never bail unless you must but even then selling at .0001 may take months and months.

Now the ugly, many of these can go out of business or reverse split which will 99% of the time wipe out your entire position, i.e. your money invested.  Also some can be halted or suspended or even go dark.  So, make sure you don’t have all of you eggs in one basket.  Do your due diligence, and study the trading patterns, monitor the emotions of the chat boards, and learn any possible rumors that may exist, before leaping.

This is the wild-wild west of the OTC... you have been warned.

 

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No-BID trading Tips

Obviously, there is a lot of money to be made or lost in these types of stocks, so be careful first of all.  Below is a list of items you probably need to do:

1. -Get an E*TRADE, Scottrade, or TradeKing brokerage account.  Some traders even have multiple accounts because each may have a certain ticker locked out.
   http://investorshub.advfn.com/Best-OTC-Brokers-BROKER-15250/
   
   -Sign up for your particular brokerage account for stock monitoring, e.g. for Scottrade it is called ScottradeELITE.  Each has their own trading platform – learn how to use it!
   
   -Start reading up on Technical Analysis (TA) and charting.  Some sites that may be helpful are the following:
   http://www.barchart.com
   http://www.stockcharts.com
   http://www.otcmarkets.com
   
   -Watch and learn about Level II which can be provided via your brokerage account and/or IHub.
   
   -Watch the BID and the ASK sizes throughout the trading day.  Learn what it means and watch when buys and sells are executed if the size actually changes.
   
   -If you really like one particular stock, buy a starter position first.  Then buy more as you feel comfortable, and I suggest you do not go all in unless you have gained much experience.
   
   -If you are new, limit yourself to 1000 dollars or less per individual stock in or near no-BID.
   
   -Read the individual boards with a grain of salt to listen for the ‘emotion’ of the board.
   
   -Learn what bashing and pumping are. Google it at least.
   (Take with a grain of salt) http://shockertrades.blogspot.com/2012/04/bashers-handbook.html
   
   -Watch Level II (L2) and learn how this operates.  Look for institutional typical diluters: VNDM, VFIN, etc.
   http://www.investopedia.com/articles/trading/06/level2quotes.asp?lgl=bt1tn-above-textnote
   
   -Lastly, remember in most cases trading involves emotions of thousands of people.  These will trade mostly on pure emotion, not some kind of business improvement, i.e. don’t drink the Kool-aid.

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(Below can be scaled up or down)
 

	Hypothetical Dozen Prudently Bought Picks
	Millions		RS	Fails	Stuck	Minor	Sold	Top	%out	Generate
1	2.5	260			X
2	3.5	360				0.0002		0.0004	50%	180
3	2.5	260			X
4	3.5	360	X							0
5	2.5	260			X
6	3.5	360					0.004	0.0078	75%	10800
7	2.5	260			X
8	3.5	360		X						0
9	2.5	260				0.0004		0.0005	25%	260
10	3.5	360			X
11	3.8	390			X
12	5.0	510			X

 

Input cash:		4000
Time frame:		24	months
		4.8%	per month

Note: once one of your picks runs hard you have more choices: you can either take the money and run, or reinvest into
other picks you have been diligently watching and/or modify your input levels for the best picks you already have.  I would
however recommend that you force yourself to take a draw from the trading account if one runs well, and as always
keep a log book of some type to record your initial buys and your final sells, and record stats for the pick (top, fails, etc.)
 

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Note from Moderators:

Disclaimer: Buying any of these may mean that you will be "stuck" in them and never find a buyer so do your D/D, or at least use money you are willing to lose. No bids can also be very profitable (that is if you take profits off the table).  As Steve Miller Band sings, "Go on and Take the money and run!" 

PLEASE: No bashing or major pumping.  If you want to do this, go to the IHub board for that particular ticker.

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Other links to IHub's for research

http://investorshub.advfn.com/0001-PICKS-ONLY-9038/
http://investorshub.advfn.com/Triple-000-and-Sub-penny-Chart-Plays-23986/
http://investorshub.advfn.com/MOMOS-BREAKOUT-BOARD-4929/
http://investorshub.advfn.com/BBs-Stock-Haven-2199/