Stock Markets Exposed
What would happen to this stock?
Ok so I have a stock that trades between $0.0001 and $0.0002 about 3-4 times a day and I buy about $10,000 worth at $0.0001 and sell at $0.0002 to make a 100% profit about 2 times each day on my virtual stock game. My question is, if I were to actually put $10,000 of my real money into this stock would it continue to roll like that or would all hell break loose and wwould my money dissapear?
Public Comments
- You need to look at the volume of this stock to tell what the effect would be. It is all about supply and demand. If only a few thousand of these shares are sold in a week, then you won't be able to sell what you have. And look at it this way, the company's share is a 0.0001 drop from you losing $10,000. Invest in a real stock, as there are a ton of shares undervalued right now.
- You would probably loose some of your money if you try to do the same with real money. One thing virtual stock games sometimes don't take into account is the trading volume of the stock and the possibility that your share buying or share selling can unfavorably influence the price you get. You would need to buy an awful lot of shares to put $10k into a stock that's worth only $0.0001. And when you buy that many shares. Then chances are good that your buying order will overwhelm the selling orders. And the price for this stock will shoot up a lot.
- obviously, its not a stock on the NYSE or NASDAQ or any other major exchange. This is because the exchange would have taken their seat on the exchange away.
- I don’t know what your stock is and I don’t know what its market cap is, but it sounds like it’s thinly traded. A thinly traded penny stock is usually a good one to avoid. Depending on the trading volume, your $10,000 might be significant. You might have an easier time buying the stock than selling it.
