Buying penny stocks

[nmbr1ballr]

Hey.  I am new to buying penny stocks on the OTC.  I use ameritrade and says I have to do a limit order.  If I want to make a trade, after I set it to limit order, should I put anything under duration and special instructions?  Under duration it says: day, MOC, EOW, EOM, GTC, GTD and I don't know what any of them mean.  What about special instructions such as All or None, and Do not Reduce.  Thanks in advance.

[nmbr1ballr]

Anyone help?

[gmarc66]

Hi nmbr1ballr,

I don't use ameritrade, but i know that gtc means good til cancelled. So, this allows u to put in the your buy or sell order at the price you select and will remain there indefinitely, until either the order gets filled or you cancel the order. Otherwise it will just be a day order and it will expire at market close.


I like the all or none option. I have 2 different online trading platforms, one offers that option the other doesnt.  On the one that doesnt offer it, it has cost me extra commission charges in the past. What happens is if i put in eg. a sell order for 100,000 shares at $1, what may occur is that it may only take 5000 shares at  the $1, and then the price could drop and not return to that price during the day, which could mean you will now have to lower the price. My broker charges me a second commission if i adjust the price for the remaining shares...however, if you leave the price and shares  the same, it could fill at some other point during the day,and therefore u will only be charged the one commission. Same goes for buying. So i would clarify with your broker what would constitute additional commissions charges if you are not filled when not using the all or none option. Some people don't like it as they say it can cause their orders to not be filled at all..but, so far on my other platform, i always use that option and have always been fully filled everytime, so for me it worked out well to use that option.

Sorry, i have no idea about the other stuff, call your broker on-line help im sure they will help u out.

good luck

julia

[wrangler]

 Sounds like you're fairly new at trading. Gmarc66 gave you some good explanations. If you're as new to it that you don't know what they mean. Do you'rself a favor and try to learn as much as possible before jumping in and maybe trying a virtual site that trades just like the real market to learn from. And one thing very important to learn is what a free trade is, if you're not using a margin account. And be careful of margin account's it can get you into a lot of trouble.  Free trades can place you're account on trading restrictions. Learn as much as you can before you get you're self into a mess. And ask you're broker if they warn you before you do make a free trade ,some don't, some do. Scottrade will warn you if you're about to make a free trade if not for that warning I would have made some that I didn't reallize I was doing.
Good luck and have lot's of patience and remember you will have winner's and looser's you cann't win every trade. For every loser, learn from it and from every winner you gain.

[The Shark]

great questiona dn answers here.  Thanks for the info beign new here and all it really helps!