how do you know how many shares to buy at once??

[mjstyle]

Hi doc I always get confused like sometimes i buy like shares for example 30,000 and it's hard to sell even i put it at the bid price.. How do you tell what's a good number of shares to buy in the first place so it's easy to sell later on.. I know it's something to do with the bid size and ask size. Could you give me an example. Like if it's under 10 cents the bid size is 50, then you x 1000 which is 50000 is that the number of share the market maker is willing to buy off you? and if ask size is 50 to then you x 1000 which is 50000 if that the number the market maker will sell you for you? Thanks doc

[scott]

Interesting question - had to read your post a couple times to get the jist of what you were asking. I didn't know there was a real of thumb for this, interested in the docs answer...

[Dr PennyStock]

I have already responded to this question many times, use the search button and you will find easily.

[mjstyle]

hi doc i searched for it before i made this post because nothing came up only a graph...

[Dr PennyStock]

Hi doc I always get confused like sometimes i buy like shares for example 30,000 and it's hard to sell even i put it at the bid price.. How do you tell what's a good number of shares to buy in the first place so it's easy to sell later on.. I know it's something to do with the bid size and ask size. Could you give me an example. Like if it's under 10 cents the bid size is 50, then you x 1000 which is 50000 is that the number of share the market maker is willing to buy off you? and if ask size is 50 to then you x 1000 which is 50000 if that the number the market maker will sell you for you? Thanks doc

It has to do with the average daily volume of the stock, if a stock trades 10M shares daily, buy or sell 30,000 is not a problem, but, if a stock trades 300,000 daily, it's a problem, 30,000 represents 30% of the daily volume.

You  must relate the average daily volume with the amount of shares you buy, you need to buy an amount of shares that you can buy and sell without affect the stock.

To see the bid size you need to have Level II.

[Cecil]

It has to do with the average daily volume of the stock, if a stock trades 10M shares daily, buy or sell 30,000 is not a problem, but, if a stock trades 300,000 daily, it's a problem, 30,000 represents 30% of the daily volume.

So Doc, what percentage (of the daily volume) would you say is a safe amount to buy? The above example was just 0.3% [(30,000/10M)x100%].

[Chris_Ben]

Good question Cecil.  I look at JUNI and see a daily volume of 20M-30M and 2M-3M seems to sell pretty easy.  Is that close to a standard?

[Dr PennyStock]

There is not a rule, it depends of several factors, not only the % of the daily average, also the momentum (MOMO), to buy or to sell shares of a stock with great MOMO is much easier than to do the same with a stock in accumulation mode, like SWVC and CYBL right now.

[rb122756]

Doc and members,

What online brokers do you recommend for trading penny stocks ?  I currently have Fidelity, but if I try to buy more than 10,000 shares at once, I can't do it online.  Have to call a broker.  I Would rather be able to trade strictly online.  For some of the .000x penny stocks the commission is more the than stock purchase price when you can only trade 10,000 shares at a time.

Thanks.

[mjstyle]

hi doc.. how can you tell when a stock has great momentum or not? Thanks

[Dr PennyStock]

Doc and members,

What online brokers do you recommend for trading penny stocks ?  I currently have Fidelity, but if I try to buy more than 10,000 shares at once, I can't do it online.  Have to call a broker.  I Would rather be able to trade strictly online.  For some of the .000x penny stocks the commission is more the than stock purchase price when you can only trade 10,000 shares at a time.

Thanks.

Change to TDAmeritrade, you can buy any amount of shares online and you pay a flat rate of 9.99 per trade, independent of the stock to be a 0.0001 stock or a 10 stock, 100 shares or 10,000,000 shares.

[Dr PennyStock]

hi doc.. how can you tell when a stock has great momentum or not? Thanks

MOMO or momentum means movement, the best example is TMA, it is a MOMO player, just look to the bid and the ask, changing every second, that is momentum.

[scott]

I changed from E-trade to TDAmeritrade a while ago and have really been pleased. They aren't the cheapest at 9.99 a trade but there is no hidden fees and their service is great.

[Dr PennyStock]

And the money you spend to make a trade, buy and sell, is about 20 bucks, just counts when you are at the beginning and have $1000 or $2000 in your account, when you have $10,000+ this is peanuts.

What counts is quality and fast orders when you want to buy or sell, TDAmeritrade is very good with that. 

[rb122756]

Thanks guys.  I appreciate your input.  I'll look into your suggestions.