Selling penny stocks.

[davie08]

I just started up an account with Qtrade I still have to make a deposit but I did this because they have cheaper commissions than td which Im involve with now and for stocks between .00 to .50 its 1% which is good for me because I dont want to put more than a $1000 in a penny stock and that would be a $10 commisssion as with td they have really high commisssions on penny stocks.

But my real question is if you buy a penny stock at sat .08 and it goes to .10 would you be able to sell it at a real time quote thats reasonably close to the actual quote at the time you wanted to sell it at. I've heard that it takes longer to fill a penny stock because it's harder to find buyers.

[Florida]

I just started up an account with Qtrade I still have to make a deposit but I did this because they have cheaper commissions than td which Im involve with now and for stocks between .00 to .50 its 1% which is good for me because I dont want to put more than a $1000 in a penny stock and that would be a $10 commisssion as with td they have really high commisssions on penny stocks.

But my real question is if you buy a penny stock at sat .08 and it goes to .10 would you be able to sell it at a real time quote thats reasonably close to the actual quote at the time you wanted to sell it at. I've heard that it takes longer to fill a penny stock because it's harder to find buyers.

It just depends on the individual stock, and how much volume there is on any given day. If the last trade on the stock was .10, but that buyer got all they wanted, then you will probably be hard pressed to find someone else that is willing to buy at that price, and you would have to settle for the bid price at the time if you wanted to sell. That may be .01, .02 or even more below the last price, thus taking your 20% gain into a break even trade, or even worse.

[davie08]

so it depends on someone else buying it at the .10 mark and if nobody buys it there it will continue to wait until someone puts in a buy which could take until it comes back down to wherever(maybe lower than what I bought it for) right. I can see why these stocks can be so volatile now, but the penny stock Im looking at does take in high volume so that makes me feel a bit better.

[Florida]

so it depends on someone else buying it at the .10 mark and if nobody buys it there it will continue to wait until someone puts in a buy which could take until it comes back down to wherever(maybe lower than what I bought it for) right. I can see why these stocks can be so volatile now, but the penny stock Im looking at does take in high volume so that makes me feel a bit better.

You are correct that you have to wait for someone to be willing to buy it at .10. Just because someone was willing to pay that for it on the last trade does not mean someone else will, just depends on how bad someone wants it, or how bad someone else wants to get rid of it. For example, if someone has an offer out there to sell at .09, then you can bet they will sell theirs before you can get the .10 that you want.

That is why many call penny stocks "roach motels", easy to get into, but hard to get out.

Good luck,

[Boom Tarzan]

Also, the more you invest (the higher the number of shares) the more difficult it will be to sell them at the desired price, I'd say.

[bman99]

^ very true i threw 1000 into UNCO and it took me forever to get rid of it but i got the price i wanted. Now i only buy about 300 dollars worth each time and get rid of it when my price hits. It takes awhile though sometimes i have been trading that stock basically once a week but penny stocks are real gambles. I know when i was using the 1000 dollars in UNCO it would sell a certain amount for that price and then i had to wait 3 days to get rid of the rest.

[Boom Tarzan]

With UNCO at 0.0105 a thousand dollars is over 95 thousand shares, and I observe that volume at a given price last friday was 45 thousand or less often so it makes sense that it will be hard to get rid of at at one price in one go.

[davie08]

ya I'm just going to stick to putting in lots of money in big named stocks like one good one I see is manulife it could drop to about 18 this week and that would be a great buy then I will just wait for it to go up 5 or 10% or I might even wait for it to go to 25 to 50% higher because you know over the next 6 months that the stock market will probably be up higher than it is right now.