or Connect
HotStockMarket › Forums › Stock Market How To › Stock Market Education › HELP !! Buy and Sell on SCOTTRADE
New Posts  All Forums:Forum Nav:

HELP !! Buy and Sell on SCOTTRADE

post #1 of 13
Thread Starter 
Hello ,

I'm very new to this board, its an awsome board.

I just began trading 2 days ago, and got my account set up with Scottrade with margin account.

I Learned from this board that trading penny stock needs to place a limit loss, i guess its not a bad idea at all.

I'm having problem executing order, i might have missed msg about this, but please teach me as a newbie.


Lets say, I want to buy 10,000 share of BIGN @ 0.060, current price is 0.062. My strategy is to sell it at 0.07 for a 16.66% profit or sell it @ 0.055 for 9% loss. my question is HOW DO I DO THAT on scottrade ? i know how to buy it at limit. But the problem is how to sell at limit for a loss ? I'm more confused after reading the stock help. is it trailing stock, stop loss, what about the point and percentage ? Sorry i have to admit i'm dumb, but i want to get smarter, please help :o
post #2 of 13
first off i would not be trading pennies first. one of the worst things you can do to your emotions and mind. start off play atleast $1-5 stocks untill you know how to exicute orders and know how the market works.

but if you dont want to all you have to do is put in a limit order at eather .06 or .055. you wont necessary get filled, depending on what the spread is but thats all you have to do. you can use limit if you making money or loosing money. doesnt matter. not sure if i answered you questions but hope it helped a little
post #3 of 13
Thread Starter 
okay , i have 10,000 shares @ 0.06. I already put a sell order at 0.07, now i want to put ANOTHER sell order at 0.055 to limit my loss (in case the pps goes down). It didnt let me because they say you don't have sufficient shares to sell.. so how ??
post #4 of 13
It doesn't work that way. If you put a sell order in for a limit of .55 and the price is going up your stock will be sold very quickly. The limit of .55 is the bottom limit you will take for your stock when you want to sell it. If you want to be a day trader you have to watch the market constantly and make your decisions accordingly.
post #5 of 13
Also you have confkicting orders if you have two orders in for the same 10,000 shares.
post #6 of 13
Thread Starter 
Quote:
Originally Posted by jdpilot
Also you have confkicting orders if you have two orders in for the same 10,000 shares.
So what you are saying is that i cannot leave my computer and has to watch my stock all the time ? because i want to place the order and let it process by itself...... automatically take 16.66% gain if it reaches .07 and take 9% loss if it reaches 0.055. is it possible ?????
post #7 of 13
What it sounds like you want is a stop loss order at .055. That way, if the stock falls to that level, you will automatically be taken out at the current market price. Two issues, unfortunately:

1. Most brokers won't allow you to simultaneously place a sell limit order on the upside and a stop loss order on the downside, such that once one of them is executed, the other one is cancelled. It's more than entirely possible that BIGN in ONE day could swing from .07 to .055, so you don't want to sell it twice, do you? I don't think Scottrade allows that kind of order entry.

2. The second, and bigger, point is that I don't believe you can even enter a stop loss order for penny stocks. There might be different rules for different brokers, but that's the norm. Unfortunately, it has to be more of a "mental" stop loss instead of an actual entered trade.

Hope that helps.
post #8 of 13
No it is not possible to have it done automatically. There is not a selection button to tell the broker your intentions to sell it high and low. You are telling your broker you want to sell at .55 and .70???? He can only take one limit but you are trying to give him two limits. I wish it worked the way you envision it to work but that is not how the game is played.
post #9 of 13
Quote:
Originally Posted by doodandgal
Hello ,

I'm very new to this board, its an awsome board.

I just began trading 2 days ago, and got my account set up with Scottrade with margin account.

I Learned from this board that trading penny stock needs to place a limit loss, i guess its not a bad idea at all.

I'm having problem executing order, i might have missed msg about this, but please teach me as a newbie.

Lets say, I want to buy 10,000 share of BIGN @ 0.060, current price is 0.062. My strategy is to sell it at 0.07 for a 16.66% profit or sell it @ 0.055 for 9% loss. my question is HOW DO I DO THAT on scottrade ? i know how to buy it at limit. But the problem is how to sell at limit for a loss ? I'm more confused after reading the stock help. is it trailing stock, stop loss, what about the point and percentage ? Sorry i have to admit i'm dumb, but i want to get smarter, please help :o

To hopefully clear this up a bit:

You are looking to place a stop order to protect your a@@. This is a good thing.

There are two kinds of stops. Stop Limit & Stop Market

A stop market will automatically enter a Market order at your stop price (.062). You WILL get filled but if the stock is tanking hard you might not get the full .062; especially in pennies where Market orders can be really funny things.

A stop limit just enters a Limit order when the price hits .062, if the stock is tanking hard it is possible that it falls right past .062, and your stock will not sell at all and you will still be stuck holding it at the end of the day.

A trailing stop will move up with your stock price. Lets say you buy XYZ @ $2.00 and set a trailing stop @ $1.50

If the stock goes up to $2.50, your stop will move up to $2.00. So let's say the stock goes all the way to $4.00 before pulling back to $3.25. Your stop will go into effect and sell @ $3.50 and you will have locked $1.50/share in profit.

Here is your biggest problem:

Scottrade doesn't allow stop orders on stocks under $1.00
(Scottrade also doesn't allow Market orders on stocks under $1.00)

So you could put in your sell @ .07 and wait for the stock to go up, but there really isn't a way to cut off the downside unless you are in front of a computer screen and can hit the sell button.

I use Scottrade too and have some of the same problems...and having to go it stopless has cost me money when I couldn't get out bcuz I was on the road.

BTW, I noticed you have a defined strategy w/ realistic, predetermined exit points both up and down. Good job.

Hope that helps.
post #10 of 13
wow.. your starting off with margin and pennies? good luck!
post #11 of 13
Quote:
Originally Posted by Hoju
A trailing stop will move up with your stock price. Lets say you buy XYZ @ $2.00 and set a trailing stop @ $1.50

If the stock goes up to $2.50, your stop will move up to $2.00. So let's say the stock goes all the way to $4.00 before pulling back to $3.25. Your stop will go into effect and sell @ $3.50 and you will have locked $1.50/share in profit.
I tried a trailing stop of $1 at $7, since I wanted to sell it if it went down to around $6. Well during the day, it went to 7.50, then it went down to 6.50 and it sold there, then the stock went back to 7.20. I never would have sold it at 6.50. I dont think I'll ever use that again. Surely there must be some independent software solution that allows you to set your own upper and lower limits.
post #12 of 13
that would be ideal to set upper and lower limits.. say sell if the stock goes below 5 dollars but also sell if the stock goes above say 6 dollars.

I dont think you can do that though.. and some stocks like pink sheet you can only do limit orders which makes no sense.
post #13 of 13
I'm using Interactive Brokers now and that lets you do it. You can choose a "bracketed buy" then you can set the limit price to buy at, limit price to sell at and stop loss price all at the same time.
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Stock Market Education
HotStockMarket › Forums › Stock Market How To › Stock Market Education › HELP !! Buy and Sell on SCOTTRADE