Hey Guys,
I hope this could be an on going thread where you experienced traders could help me a little bit a long the way. I am complete newb, well I have been practicing and researching on and off over the years but this week have really started to get deep into this.
So these last few days, I have been trading in penny, sub penny and super sub penny stocks on the OTC/BB markets using one of those free stock simulators. I have learned a great deal from the simulator as well as countless hours of reading a lot of information on technical analysis. Unfortunately I have not used that analysis yet in any of my trades.
I like day and swing trading.
I am currently following stock picks from those newsletters you hear about all the time these days. I really want to see what works and what's a load of BS when it comes to these picks. I have been pleasantly surprised. Some picks have been downright awful while a few making me a very nice profit.
Even though I been practicing with hot stock picks, still to me it's not real trading. You could make money in the stock market by following someone's lead through their market research but I would much rather prefer to find my own stocks through due diligence. Or buy one of these stock picks but know myself when to get in or out of a trade and how to carry the trade by myself instead of relying on others to make that decision. This should all come natural once I have thoroughly studied charting and other forms of analysis. The good thing is I'm a fast learner.
I have been getting use to limit orders and hear that market orders are not good for penny stocks as these stocks move quickly and are very volatile. So by the time a market order has been executed the stock may of dipped or spiked. So a limit order is preferable for both buying and selling.
The one thing I don't get with a limit order was like today, while getting delayed quotes in my stock simulator and checking live prices at www.otcmarkets.com the live price was 0.0044 and someone said to do a limit order to purchase the stock at a limit price of 0.0055, So I did this and then the final price was bought at 0.0046 how is this so, I don't seem to understand this?
I did other buys using limit orders for other stocks and set the limit price at 0.0044 and then it purchased at 0.0041 when the live price was 0.0043, how is this so?
One other thing, I am from the United Kingdom and have read about this SEC PDT rule of not being able to make more than 3 trades in a 5 day period if you don't have $25,000 in your account. Does this rule apply to UK accounts trading on US exchanges?
Lastly, if I was to get a UK online broker account and that broker charged commissions at say £10 per trade. Do you just pay 1 commission each way on the buy and sell? So if I bought shares in XYZ with $2,500 at 0.0050 then that's going to be 500,000 shares. So no hidden costs just the £10 on the buy and £10 on the sell. Is there no limit to how many shares there must be in that commission?
I was reading that www.interactivebrokers.com charge 0.005 per share which seems crazy as that's like thousands of dollars for 1 trade. Where all the other brokers like etrade, ameritrade, are charging like 7-10 Dollars.
I would love to hear your views on this and to have some of my questions answered please
I really do love this trading and want to get good at it
Any help much appreciated
Many thanks in advance
I hope this could be an on going thread where you experienced traders could help me a little bit a long the way. I am complete newb, well I have been practicing and researching on and off over the years but this week have really started to get deep into this.
So these last few days, I have been trading in penny, sub penny and super sub penny stocks on the OTC/BB markets using one of those free stock simulators. I have learned a great deal from the simulator as well as countless hours of reading a lot of information on technical analysis. Unfortunately I have not used that analysis yet in any of my trades.
I like day and swing trading.
I am currently following stock picks from those newsletters you hear about all the time these days. I really want to see what works and what's a load of BS when it comes to these picks. I have been pleasantly surprised. Some picks have been downright awful while a few making me a very nice profit.
Even though I been practicing with hot stock picks, still to me it's not real trading. You could make money in the stock market by following someone's lead through their market research but I would much rather prefer to find my own stocks through due diligence. Or buy one of these stock picks but know myself when to get in or out of a trade and how to carry the trade by myself instead of relying on others to make that decision. This should all come natural once I have thoroughly studied charting and other forms of analysis. The good thing is I'm a fast learner.
I have been getting use to limit orders and hear that market orders are not good for penny stocks as these stocks move quickly and are very volatile. So by the time a market order has been executed the stock may of dipped or spiked. So a limit order is preferable for both buying and selling.
The one thing I don't get with a limit order was like today, while getting delayed quotes in my stock simulator and checking live prices at www.otcmarkets.com the live price was 0.0044 and someone said to do a limit order to purchase the stock at a limit price of 0.0055, So I did this and then the final price was bought at 0.0046 how is this so, I don't seem to understand this?
I did other buys using limit orders for other stocks and set the limit price at 0.0044 and then it purchased at 0.0041 when the live price was 0.0043, how is this so?
One other thing, I am from the United Kingdom and have read about this SEC PDT rule of not being able to make more than 3 trades in a 5 day period if you don't have $25,000 in your account. Does this rule apply to UK accounts trading on US exchanges?
Lastly, if I was to get a UK online broker account and that broker charged commissions at say £10 per trade. Do you just pay 1 commission each way on the buy and sell? So if I bought shares in XYZ with $2,500 at 0.0050 then that's going to be 500,000 shares. So no hidden costs just the £10 on the buy and £10 on the sell. Is there no limit to how many shares there must be in that commission?
I was reading that www.interactivebrokers.com charge 0.005 per share which seems crazy as that's like thousands of dollars for 1 trade. Where all the other brokers like etrade, ameritrade, are charging like 7-10 Dollars.
I would love to hear your views on this and to have some of my questions answered please
I really do love this trading and want to get good at it
Any help much appreciated
Many thanks in advance
