[mage lang="" source="flickr"]penny stocks and shares[/mage]
How much should I set my limit price on penny stocks?
I am brand new to penny stocks. I’m trying to invest $100 in a penny stock at .0003 cents per share. It requires that I set a limit price though. What is a reasonable limit price for this situation?
More information on penny stocks and limit prices would be appreciated too. Thanks.
Penny stocks are thinly traded. Imagine going to a swap meet where you’re the only one that shows up, how successful will your trades be? If you start trading penny stocks you’ll often find that you won’t be able to sell the stocks when you want to. There’s also a lot of manipulation that’s possible because it’s so thinly traded and you’ll be on the short end of those trades. People are attracted to penny stocks because they think that the lower share prices makes them more affordable but the commissions are per trade so you actually incur a larger overhead. Save up your money till you can play with real stocks.
Besides it’s clear you don’t comprehend what a stock price is. There are three prices quoted, the price of the last trade, that’s the one most often referred to as the stock price but that trade is gone, a done deal, then there’s the highest bid price on the order book which is someone’s limit order to buy and the lowest ask price which is someone’s limit order to sell on the order book. These orders are on the order books cause no one was willing to buy at the ask prices yet and no one was willing to sell at the bid prices yet. If you want to invest in the stock, look at the ask price, there’s someone willing to sell stocks at that price, you can put your order in at that price to try and snag it or you can put your order to buy at a lower price and wait for someone to settle for your bid.
Penny stocks are dangerous waters and you’re wading in before you even know what water is.
Don’t fall victim to a penny stock scam | Investing in penny stocks: avoid pump and dump