Buying Penny Stocks Homepage

Question: Are volume limits for buying penny stocks normal?

(Posted by: lionfireinc on 2012-02-02 19:34:41)

I am using the stock simulator that Investopedia offers. I wanted to buy some shares of a penny stock today but was limited to how much I can buy. Will I come upon such limits when I open a real account with Scottrade?

Posted by: jeff410 on 2012-02-02, 20:23:16

No you wont when you open a real account. Its limited by how much money you have to invest.

Posted by: A nobody on 2012-02-02, 20:25:16

Penny stocks do not trade in a regulated market and it's very hard to determine or track the true trading volume of the stocks traded. In the real world it's very easy to buy penny stocks even with high volume, the problem many owners find is that they have trouble in selling such stocks especially in volume. Also there is a very big difference in trading stock in a simulator than in the real world. Unless you have experience in trading regular securities you will have great difficulty in trying to trade penny stocks and trading using a simulator is not like real trading

Posted by: underexposed... on 2012-02-02, 22:12:47

@A Nobody does not trade pennies so his advice is less than credible. Before you buy a penny stock Look at what is its normal trading volume/ day....as long as your volume is about 1/ 10 that being traded there is no problem. If you are trading for the whole day's average trade Obviously there will be problems completing your trade in a suitable time....if you are a daytrader you should lower your volume to 1/ 100 of the average day's trade to have it completed immediately...BTW I define a penny as $0.01 to $1 range....Sub pennies are scams and should not be traded by those without specific skills to deal in that underworld.

Posted by: Marcelo G on 2012-02-03, 19:44:50

Dont waste your time on penny stocks.It's like throwing your money in the trash!