Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
So I'm in a stock and have been for a while and it's gone from $20 to $2.58 but bounces on a daily basis from $2.45 to $3.10 and has had a spread of about .5 cents. The spread as of this AM is bid $2.40 and ask $3.10 with yesterdays close price of $2.58.
I was thinking of buying 1000 shares and selling when it bounced .10 to .30 cents just making some change...
What I don't understand is why the huge spread all of a sudden and what does it mean?
Btw, it's a bank and like most the thought is it's on shaky ground which may or may not be true. Not trying to make a killing just do a bit of in and outs to make a few bucks...
I don't think you are going to have much success trying to day trade your way out of a bad investing strategy. Most people find it harder to trade than invest.
I don't think you are going to have much success trying to day trade your way out of a bad investing strategy. Most people find it harder to trade than invest.
I don't intend to trade my way out, I'm aware that ship sailed and I've got to ride it out.
The idea is just to tinker and make a couple bucks every now and then, I've got no illusions about making millions.
So I'm in a stock and have been for a while and it's gone from $20 to $2.58 but bounces on a daily basis from $2.45 to $3.10 and has had a spread of about .5 cents. The spread as of this AM is bid $2.40 and ask $3.10 with yesterdays close price of $2.58.
In general, spreads increase as volatility or perceived risk increases. But I'm thinking maybe you were looking at the premarket bid/ask? The spreads are typically much greater then than in the regular session.
More important than that, why would you hold a stock from $20 to $2.58?
So I'm in a stock and have been for a while and it's gone from $20 to $2.58 but bounces on a daily basis from $2.45 to $3.10 and has had a spread of about .5 cents. The spread as of this AM is bid $2.40 and ask $3.10 with yesterdays close price of $2.58.
I was thinking of buying 1000 shares and selling when it bounced .10 to .30 cents just making some change...
What I don't understand is why the huge spread all of a sudden and what does it mean?
Btw, it's a bank and like most the thought is it's on shaky ground which may or may not be true. Not trying to make a killing just do a bit of in and outs to make a few bucks...
What stock is this? I always ask this because knowing the stock symbol allows me to access all kind of information on it. Anyway, a number of things can cause price spreads. The more illiquid the stock the bigger the spread. The more liquid the stock the thinner the spread. Most likely though the spread is caused by the market makers or specialists trying to make a few bucks. This would be more transparent if you use level II quotes.
In general, spreads increase as volatility or perceived risk increases. But I'm thinking maybe you were looking at the premarket bid/ask? The spreads are typically much greater then than in the regular session.
More important than that, why would you hold a stock from $20 to $2.58?
Perhaps he was one those brainwashed "investors" who deal with a loss by saying, "I haven't lost anything because I haven't sold."
What stock is this? I always ask this because knowing the stock symbol allows me to access all kind of information on it. Anyway, a number of things can cause price spreads. The more illiquid the stock the bigger the spread. The more liquid the stock the thinner the spread. Most likely though the spread is caused by the market makers or specialists trying to make a few bucks. This would be more transparent if you use level II quotes.
The stock is cors, I know,I know one of "those" banks...
The reason I'm still in it is my broker/advisor. I took control but too late but the upside is it's pretty much a minor position.
Just my thoughts, if you are gonna do it try and buy at or below 2.00 and sell at 2.60. Looks like it has hit high of $2.60 the last few days. I would be afraid to hold it past 27 OCT when they release their earnings, because they lost -.30 per share last QTR, God know how much worse it will be this QTR. I would guess the stock price will probably tank that day.
Just my thoughts, if you are gonna do it try and buy at or below 2.00 and sell at 2.60. Looks like it has hit high of $2.60 the last few days. I would be afraid to hold it past 27 OCT when they release their earnings, because they lost -.30 per share last QTR, God know how much worse it will be this QTR. I would guess the stock price will probably tank that day.
Yeah, kinda figured that. The guesstimate is for a -.61 loss so I'm hoping all they lose is .30.... I jumped in today for about 2 hours, broke even when I got out with the feeling it was heading south and boy did it.
Watch out for pattern day trading rules if you decide to trade this way. Basically if you make more than 4 trades in a five day period you will be considered a pattern day trader and will be required to have $25k in your margin account.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
