stock volume; how malleable is a penny stock with low volume?

Question

what happens when you purchase 10,000 shares of a penny stock whose 10 day average volume is 77,0000 shares? Will the trade move the stock up only to trigger a mass sell off?

Answer 1

Extremely!

The lower the volume, the more easily manipulated a stock can be. The cheaper it is, same thing because it'll take less $$ to manipulate it.

In general, you should stay away from penny stocks. In most cases, it's like playing slots in vegas. You might hit one once in a while, but in general, just say buh bye to the money!

Hope that helps!

Answer 2

Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/ed075

Answer 3

probably about as "malleable" as a penny

Just watch it trade, and you should be able to tell. But generally, it is not a "trading" stock. It's like trading after hours, and you have to use certain precautions, like limit orders.

You don't have to buy it all at once, do you?

Must be one helluva story stock if you're willing to accept the multiplied risk of a penny stock to begin with and lack of liquidity.



I would worry more about what's going to happen when you want to get out.

Answer 4

Selling the stock will usually decrease the sell price. You can work with your broker to put in an order where you only sell shares at above a certain price.

However, penny stocks are usually horrible investments and ripe with scams. Beware.

Answer 5

The mass sell off we be everyone selling off to you. You will have to bid a high price to fill that large of a trade in illiquid stock. You will the price up.Then after you own it, the problem is finding someone to buy it, you will then have to lower your price enough to dump it, and then you will push it down. I advise you to stay away from them, if they are not listed on an exchange you will get ripped off by the market makers.

Answer 6

merchandising at a value greater than your purchase cost will assure your rewarding commerce, of direction. Compounded by making use of adequate length, your place will boost the earnings. That lots is hassle-free. I disagree approximately ninety 5% no longer being incredibly worth your investment. maximum shares on the DOW, NASD, NYSE and AMEX began at valuations below $5. they initiate the place they could and climb or drop from there. the version lies in part interior the indisputable fact that OTC shares---alongside with pinks and BB equities---function on much less stringent SEC-imposed regulations. till a inventory is listed on an substitute, that's below no requirement to submit its financials. This invites endless probability for fraud and various pump and unload events. i'm presently invested in 2 options i'm confident are being manipulated. by way of fact their figuring out to purchase and merchandising quantity is so large, i'm in a position, so a techniques, to make rewarding trades by making use of looking forward to the diverse manipulation. danger isn't inevitably tied in with valuation. examine out JADAE which priced at $a million.03 purely over a week in the past yet interior the area of a pair of days, it dropped to a nil.33 of that cost. I traded out and in of it because it rose from 36 cents in purely approximately no time in any respect on mind-blowing quantity. It dropped much extra quickly, back on extensive quantity. Had I no longer traded on the way up, suspecting manipulation, i'd have lost important funds. that is no longer constantly that the inventory isn't worth of investment. that is extra like the fruit is large; the worms crawling interior and around it kill the possibility. Len

Answer 7

yes it will move up. depending on how much will depend on the sell off or not