Should I cancel my order due to Bush?

[Jason28]

The second I have seen Bush appear this morning I already knew that it was bad news. I placed an order last night for VEXP but wonder if I should cancel now.

[Albert0373]

You're going to buy VEXP why...?

[Jason28]

I read where it is a good short sale today am I wrong?

[Albert0373]

And how were you going to go about shorting this wondrous stock under $5?


Are you doing this in a sim.?

[Jason28]

Well I guess it doesn't matter I have already cancelled it. No it was real I assumed it would gain today so I could sell it. If it does have a high increase today I will hate you forever :laugh:

[Albert0373]

Real? Please explain how you got around the rule that you aren't allowed to short under $5 (although there are ways to get around that).

[Jason28]

Hmm I just thought it was as simple as buying and selling it? I have sold stocks under $5 before within one or two days.

[Albert0373]

I read where it is a good short sale today am I wrong?

Maybe I misunderstood you, you read that today so you've cancelled your trade.

Thought you were going to go short overnight.

[Jason28]

So it is ok to short shares stock under $5 dollars during the day?

[aiki14]

I am wondering if we have a communication problem here. Jason, were you taking a short or long position in the stock? And do you understand that a short position is a bet on the stock going down not a short term position? Sorry if I misunderstand, and don't mean to be over simple.

[Jason28]

Sorry I am sure that I am one in error since I am still new to trading. Basically I would like to buy that stock and sell it whenever the price increases :) Being that it is only a dollar I assume that it cannot fall drastically in a short period of time. I guess I could hold onto it for a day or until next week and hope that it increases.

[Stin]

The actual dollar amount each share is priced at has little to do with how far it can fall or how quickly. If the shares were recently worth a whole lot more then a $1 price might be low, but if the stock trades at $1 all the time then it can do anything. Keep in mind that stocks can lose a lot of value very quickly.


And now looking at VEXP:
It has a market cap of 3.2 million with almost no volume. Thats a penny stock. The bid ask spreads are also huge so you would most likely get dominated on both sides of the trade. See how the price doubled yesterday? It can do the same thing the other way.

[Jason28]

Thanks tin if you do not mind could you tell me which chart you are seeing the spread? I would like to be able to determine the growth of a stock by using that stat. Thanks.

[Jason28]

Looks like VEXP is up darn I wish I wouldn't have cancelled my large order from eariler :(

[Stin]

Jason, you have a lot of reading to do. That stock is a VERY dangerous investment. If you look at the bid and ask prices you will see they are seperated by a very wide margin. Bid and ask are the prices people will pay and sell a stock for. For widely traded stocks these prices are usually seperated by a single peney. In this case (at close of market) there is a 23% spread! If you could buy at the bid and sell at the ask you could instantly make 23% gain. This makes it hard to judge how a stock is doing. This thing bounced up and down so you could have made or lost a good chunk of money depening on your timing. There was even an hour of time in which no shares were traded. If you are new then you should most likely not be trading these stocks.