Replies to post #23751 on lowtrade

[lowtrade]

Trading the OTC when you can't day trade.

Since I won't be able to babysit these anymore should I set up some sells on these plays in advance?
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So I was wondering if I should set the sells good for 60 days at a certain % gain from my entry so I don't miss a possible one day pop or just let them ride and assume the pop will go on for more than a day?

This answer could take several directions. And is as always a personal opinion only. I'm not standing in your shoes.

I've always felt the OTC is a day trading market. Based on manipulation & emotion. If your not there to act on manipulation & emotion you should play in a different play ground.

Question is does your personal situation (wants, needs, and goals) vs cash available, allow moving off the OTC.

Placing a GTC (good till closed) limit order for gain is offensive. Crooks don't put money into your pocket, so limit orders are safe. And placing a stop order defensive. Not so safe on the OTC.

I feel all trading the OTC should trade defensive, but I would never place a stop order in the open market in the OTC. Bear raids happen very often during slow volume days. And your money could be taken right off the table, while not looking. For that matter bear raids happen on low priced exchange stocks also. That's why I use trailing stops. They reside in your brokers computer until restictions are met, then the order goes to the open market. So your money isn't on the table for anyone to pick up when your not looking, it's in your pocket.

The problem is most brokers don't allow trailing stops on pennies. Most require $5 price levels. I've heard some say $3 and some $1. But defiantly haven't heard of a broker which allows trailing stops for pennies.

So here we are. It's safe to place a GTC limit order, but not for a stop. The OTC should be played defensively and you can't trade defense safely without being there.

IMO move to a price level where trailing stops are available to you. You must have the ability to sell out at planned exceptable loss levels safely!!! Capital preservation is as or MORE important then gains with individuals with limited resources.

I'm saying IMO if your not there to trade, don't play the OTC. Pond fishing plays, thats different. When they brake they double over several days, because the dark masters manipulating price has the money to keep them going until, they run out of stock for sale. But a OTC emotion move, on news, depends more on he retail herd and can stop and reverse on a dime. Or should I say 1/10th or 1/100th of a penny.