shadowninja
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Stocks with the value of less than 100p. So most companies, then. 
Penny stocks are the domain of the expert. Newbies are advised to stay away. I am guessing you're the latter or you'd not have asked the question.
Penny stocks are the domain of the expert. Newbies are advised to stay away. I am guessing you're the latter or you'd not have asked the question.
Stocks with the value of less than 100p. So most companies, then.
Penny stocks are the domain of the expert. Newbies are advised to stay away. I am guessing you're the latter or you'd not have asked the question.
so doesnt matter what the companies market cap is? or if its in FTSE or whatever...
advised? i listen to advice in moderation. I will learn and make my own mistakes, happily.
Newbies are advised to stay away from everything.
so i should stay away from every UK stock which is under 100p??? is this what you are saying?
(i was told by a broker AIM stocks are for 3 to 5 year investing. Wiki says AIM stocks are not for newcomers. I know day traders trading AIM stocks. Should a newbie stick to FTSE 350? )
arabianights
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Rbs
so anything under 100p?
thats the only criteria you look at? share price?
i hear thers alot of growth potentional for pennystock trading.
shadowninja
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The former measure was "below 100p". The problem with penny stocks is that you can easily buy it but you might have a problem selling it. There's advice for newbies and advice for newbies. In any case, you can take my advice or leave it; it matters not to me.
The former measure was "below 100p". The problem with penny stocks is that you can easily buy it but you might have a problem selling it. There's advice for newbies and advice for newbies. In any case, you can take my advice or leave it; it matters not to me.
if you buy shares, you can sell them just as easily. You just click sell online.
If theres decent volume being traded, so much the better.
Under 100p.....
thats the only criteria you look at? share price?
Ha ha Ha! A lot of them don't last that long!
lol
i know! hoodless brennan on the phone told me this....said those stocks dont do anything short term....
new_trader
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Penny stocks are sometimes referred to as Penny Dreadfuls and as for cheap...2p will sound expensive after it has dropped to 1p. My advice is to stay away from them. Don't confuse CHEAP with WORTHLESS.
yeah 1 or 2p shares just dont seem or feel solid or right.....
but ..... shares slightly more.....ive made money from these.....
and ive heard stories people make a living out of such share prices, be it day trading or swing trading...heck....even long term.....
pennystock seems to be an american term......
shadowninja
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I think you've misunderstood. Penny shares that were penny shares in the boom times have little or no liquidity, therefore you can click sell but you might not have someone to buy at the other end. The spread could be huge, too. And as stated above, a drop in 1p could half the value of your trade. They are penny shares for a reason.
but pennyshares dont literally mean 1 or 2p do they?
so say if i have some cheap pennystock shares, when i press sell with my online broker, they may not sell? is that possible? i thought if you bought shares using an online broker, its as simple as that, to sell. So an online broker can say "no" and you are stuck with them?
yeah i would only buy stock which was liquid and somewhat in movement/volatile.
spread could be huge?
i bought some shares for 15p last month....but when i look at the companys charts now, the highest historical price is only like 10 or 11p..... so it sounds like i paid a stupidly high spread diff right?
shadowninja
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No, they don't literally mean a penny. They are shares measured in the order of pence not pounds so less than £1 per share.
Well, if you have 100 shares in Phoenix Developments PLC and nobody wants them, who else is going to give you money for them?
Re that 15p company, if the share value falls to 8p, how much is your "investment" worth?
Well, if you have 100 shares in Phoenix Developments PLC and nobody wants them, who else is going to give you money for them?
Re that 15p company, if the share value falls to 8p, how much is your "investment" worth?
so when i press "sell", if my broker cant find a buyer (?).... i cant sell?
what actaully happens when i press "buy" or "sell" online? does the broker go to the market place and do the trade? or do they know what they can sell or buy before we click....i guess its all automated.... so this is why its easier to get into and out of trades with higly liquid company stocks, right?(because theres lots of volume) its cause theres lots of shares going back and forth, buying and selling etc...... am i thinking along the right lines?
so just cause i buy some AIM shares....does NOT mean i will be able to sell them? they will have a market value....but its possible that the SALE may not be done with the online broker? ......... so if all this is correct....FTSE and high volume stocks are safer to trade.....
8p minus costs.
with charts, do they show bid or offer? becasue what i paid...is just not reflected in the charts..... did i feel the wrath of the spread?
new_trader
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What makes you think you are ready to put real money into trading jonboy123? In EVERY thread you start you ask kindergarten questions about trading and yet you are risking real money. Go back to your XBOX360 jonboy123...before you go broke.
HB are puishing penny stocks. They are MMs in some AIM stocks and Plus Market stocks.
Have a look at how penny stocks are floated and then marketed. Do you remember the licensed dealers?
A lot of stocks are floated at 2-3p purely because it is easy to get a secondary market going. If you float a stock at 2p and get the market to quote it at 2-3p you can get your placees out at 2.5p and the mugs in at 3p through the bucket shops.
shadowninja
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If we assume that the price you can sell it at is 8p (ie the spread is accounted for) then you've lost 7p for every share you've bought plus commission. So if you'd bought £10k of shares, they're now worth just £5.3k. It falls just 1p to 6p and it's worth £4k.
There is no hard and fast rule. It would usually be a share with a price in single digits, AIM or Plus, highly risky, etc.etc. I am sure we can all guess what a penny share is.
I mean what would you call a share at 1p that effected a 100/1 consolidation? (not that it would take long for the share price to go down to 1p again.
Or how about Lloyds at 40p? Hardly what you would call a penny share.
