New trader here. Got some questions.

[okineviqotgob]

If I were to buy 166,666.667 stocks that is worth $0.003 will I get all of them for that price or will it change? For example, 100,000 for $0.003 and then the rest for $0.004 or will it all lock in for the actual price when buying? I just want to make sure that when I buy a lot it will all lock in at the same price and not vary b/c I bought a bunch.


If I know of a stock that always bounces from $0.003 to $0.00375 would that be a safe bet? What happens to the price of this stock when someone buys this many? Is there a way to find out what the average amount of shares that someone typically buys for a certain stock?

Sorry for all the questions.

[okivmizid]

Stocks that trade at that price can only be bought as a limit order in my experience. So your order would fill until the MM ran out of shares. That would result in a partial order fill.....then, chances are, the ask price would go up (since there's less shares around) and you'd have to increase your limit price in order to fill your order. With that many shares, you might have keep raising your bid/limit price in order to get it filled.

On the flip side....good luck unloading that many shares in an OTC stock! Again, you can't do a market order, so you'd have to put in a sell limit order which would probably again only be partially filled as demand dicated.

Of course, all of this depends on many factors such as the stock float, avg shares traded in a day, etc. It's a very difficult question to answer without specifying a company stock.

Personally, if you have $5000 to spend, no way I'd be dishing my money out to an OTC stock unless you can afford to take a huge loss. No, it's NOT a safe bet! If you think you can play that little bounce and make $$$.....GOOD LUCK. Theoretically, maybe, practically.....I seriously doubt it. You can see the trades going through if you have L2 quotes. That will show each and every trade as it happens in real time so you can see how many shares people buy.

My advice, save your 5 grand and buy stock in a real company, big board company and don't gamble on an OTC. Too many people end up losing most or all of their money on OTC penny stocks.
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[okiviyem]

Quote:
Originally Posted by BadThad View Post
Stocks that trade at that price can only be bought as a limit order in my experience. So your order would fill until the MM ran out of shares. That would result in a partial order fill.....then, chances are, the ask price would go up (since there's less shares around) and you'd have to increase your limit price in order to fill your order. With that many shares, you might have keep raising your bid/limit price in order to get it filled.

On the flip side....good luck unloading that many shares in an OTC stock! Again, you can't do a market order, so you'd have to put in a sell limit order which would probably again only be partially filled as demand dicated.

Of course, all of this depends on many factors such as the stock float, avg shares traded in a day, etc. It's a very difficult question to answer without specifying a company stock.

Personally, if you have $5000 to spend, no way I'd be dishing my money out to an OTC stock unless you can afford to take a huge loss. No, it's NOT a safe bet! If you think you can play that little bounce and make $$$.....GOOD LUCK. Theoretically, maybe, practically.....I seriously doubt it. You can see the trades going through if you have L2 quotes. That will show each and every trade as it happens in real time so you can see how many shares people buy.

My advice, save your 5 grand and buy stock in a real company, big board company and don't gamble on an OTC. Too many people end up losing most or all of their money on OTC penny stocks.
Thank you! You have been very helpful! I am going to start out with 500 - 1000 to begin with though. You saved me a huge headache betting on something like that. What exactly is OTC?

[olicoouborefu]

OTC = "Over The Counter". You'll see OTCBB which is "Over the Counter Bulletin Board" and then simply OTC, which a lot of the time is referring to pinksheet stocks. The bulletin boards are reporting companies that have to follow regulations to maintain listings, but they are still manipulated quite regularly.
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[olaouicp66]

Quote:
Originally Posted by Klipper22 View Post
OTC = "Over The Counter". You'll see OTCBB which is "Over the Counter Bulletin Board" and then simply OTC, which a lot of the time is referring to pinksheet stocks. The bulletin boards are reporting companies that have to follow regulations to maintain listings, but they are still manipulated quite regularly.

Thanks everyone for the help! Is the MKT Cap the amount of shares that you can buy at one time without a limit order? What about vol/avg, is this the average amount bought buy a trader at one time?

Thanks