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re: Closed -
Posted on 1/24/21 at 10:27 am to xxTIMMYxx
Posted on 1/24/21 at 10:27 am to xxTIMMYxx
You put the limit order in at whatever the max you want to pay is. If you're ready to buy immediately and like the price, just set your limit at the current 'ask' price; don't worry about the market price. It should fill immediately most of the time. I usually set my limits at the current 'bid' price; it still normally fills.
I don't put stop limits in on penny stocks; they are too volatile. If you do, make it well below the current market price. Bear raids and cascading stop limits can trigger a 30% drop in minutes sometimes, and then your sale executes, and then MM's buy it back up to prior price within another few minutes and all of a sudden you've lost 30% because of computers. The best thing is to have a lot of alerts set up. Alerts for news, alerts for >10% drop in price, etc. Then when something material happens, you're ready to pull the plug if necessary. When dabbling in these pennies, you've got to be able to carry the risk that your holding is going to zero. It shouldn't do that; you should be on top of it enough to back out before anything that bad happens. But that is the risk you have to be comfortable with. Putting in a stop limit for 10% less than the current price implies to me you probably shouldn't be trading pennies.
Another tip, if you get a winner, recover your investment as quickly as possible. 4 of the 5 OTC stocks in my portfolio, I'm carrying with zero investment money; entire basis is profit. NWBO, ERBB, SBFM, ABML. It makes it much easier to stomach the possibility of a total loss knowing that I'll still break even.
ETA: Just in case someone reads this that isn't very familiar with trading. If setting your buy limit at the 'ask' please just verify that the ask price is still in your desired range, and definitely don't do this in premarket trading. The spread (difference between bid and ask price) can get huge and you'll get screwed. Generally during regular trading hours, the ask is where you'll get your order filled most efficiently. Just...avoid buying stocks premarket altogether. Too much volatility.
I don't put stop limits in on penny stocks; they are too volatile. If you do, make it well below the current market price. Bear raids and cascading stop limits can trigger a 30% drop in minutes sometimes, and then your sale executes, and then MM's buy it back up to prior price within another few minutes and all of a sudden you've lost 30% because of computers. The best thing is to have a lot of alerts set up. Alerts for news, alerts for >10% drop in price, etc. Then when something material happens, you're ready to pull the plug if necessary. When dabbling in these pennies, you've got to be able to carry the risk that your holding is going to zero. It shouldn't do that; you should be on top of it enough to back out before anything that bad happens. But that is the risk you have to be comfortable with. Putting in a stop limit for 10% less than the current price implies to me you probably shouldn't be trading pennies.
Another tip, if you get a winner, recover your investment as quickly as possible. 4 of the 5 OTC stocks in my portfolio, I'm carrying with zero investment money; entire basis is profit. NWBO, ERBB, SBFM, ABML. It makes it much easier to stomach the possibility of a total loss knowing that I'll still break even.
ETA: Just in case someone reads this that isn't very familiar with trading. If setting your buy limit at the 'ask' please just verify that the ask price is still in your desired range, and definitely don't do this in premarket trading. The spread (difference between bid and ask price) can get huge and you'll get screwed. Generally during regular trading hours, the ask is where you'll get your order filled most efficiently. Just...avoid buying stocks premarket altogether. Too much volatility.
This post was edited on 1/24/21 at 10:37 am
2
Posted on 1/24/21 at 10:40 am to Fe_Mike
Okay, I posted this in the watch list thread but this seems like the more appropriate place. SBFM is up ~20% since I posted this:
"I don’t want to start a thread on this one cause I’m not that confident. But take a look at SBFM if you’re interested in a penny swing. It’s been steadily climbing on relatively low volume on the cusp of news regarding both/either a covid medication (they are working with UGA on this) and their developmental cancer drug which is hopefully about to start trials. Both are currently undergoing in vitro and mice studies. The cancer treatment already has positive results from in vitro (16x more effective at stopping reproduction of multi-drug resistant cancer cells than current SOC). If it doesn’t show toxicity in mice it’s almost certainly a go.
Now, their climb is concurrent with the recent small cap boom, so might be smoke, but it is very steady accumulation. Price is almost to $.05 and if they drop news that either of these treatments is beginning human clinical trials it’s going up 100% overnight. Very low float for penny stock, so that's good for price potential. The risk, obviously, is that both drugs flame out and it goes sub penny. But it is unique that they have two relatively promising products at similar stages in the pipeline.
This is a swing for me, not long term. Too early in development."
"I don’t want to start a thread on this one cause I’m not that confident. But take a look at SBFM if you’re interested in a penny swing. It’s been steadily climbing on relatively low volume on the cusp of news regarding both/either a covid medication (they are working with UGA on this) and their developmental cancer drug which is hopefully about to start trials. Both are currently undergoing in vitro and mice studies. The cancer treatment already has positive results from in vitro (16x more effective at stopping reproduction of multi-drug resistant cancer cells than current SOC). If it doesn’t show toxicity in mice it’s almost certainly a go.
Now, their climb is concurrent with the recent small cap boom, so might be smoke, but it is very steady accumulation. Price is almost to $.05 and if they drop news that either of these treatments is beginning human clinical trials it’s going up 100% overnight. Very low float for penny stock, so that's good for price potential. The risk, obviously, is that both drugs flame out and it goes sub penny. But it is unique that they have two relatively promising products at similar stages in the pipeline.
This is a swing for me, not long term. Too early in development."
Posted on 1/24/21 at 1:50 pm to Fe_Mike
yea, all the action seems to start pre-market. i will see it at like 7am at 9% and want to get in before it is at 24% when the market opens, at which point it continues to go up. You are saying to not do that. It seems like that is what a bunch of people are doing.
Soo essentially buy in with a limit order and watch it like a hawk and sell when you feel like the time is right. That sounds about right.
There are a ton of youtube videos on this. I will spend the next hour watching them. I have set aside a whole separate watchlist for penny stocks.
Soo essentially buy in with a limit order and watch it like a hawk and sell when you feel like the time is right. That sounds about right.
There are a ton of youtube videos on this. I will spend the next hour watching them. I have set aside a whole separate watchlist for penny stocks.
This post was edited on 1/24/21 at 4:10 pm
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