Okay, I’m sort of new to , but now quite. I currently through Sharebuilder, even though I’m beginning to not like them so much. A lot of "fine print", if you know what I mean. Anyways, here’s my problem:

I bought a stock, 5,000 shares at .09 cents. I meant to buy at .05 cents, and that’s what my confirmation said before I placed the order, but I didn’t realize that the quote of the are 20 mins delayed. Sharebuilder doesn’t offer actual real-time quotes, imagine that. Anyways, my account ended up a couple of hundred dollars short, mainly because it still processed as 5,000 shares at {content}.09. Anyways, I put a limit order in to sell all of the shares when they hit $.010, low and behold, it hit 0.10 today, but my shares haven’t been sold. Called SB, and they said for large orders, it could take a couple of days over a few different trades, and that I would be charged .95 for each .

Is there a better place or way to do these types of trades? Thanks!

 

  • S P 5:01 pm on August 23, 2010

    First of all, you’ve either typed multiple typo’s in your question, or you’re lost.

    You said you place a sell order at one penny (You typed $.010). Plus, you revealed your lack of understanding of the trading process.

    Question to you: What are you doing? Why are you involved in something of which you have limited understanding and sophistication?

    You are getting your head handed to you, all for $11.95 a trade (?)

  • ozperp 5:01 pm on August 23, 2010

    You bet there is! That’s outrageous. You need to find a reputable online broker providing "real-time quotes" and/or "zero slippage".

    When the shares are of such low value, 5000 shares is not a large order and should be able to be easily accommodated. I suspect you simply chose a share that doesn’t have a high turnover. Volume of trade (liquidity) is a factor that you should consider when placing your trades – you want to ensure that the daily volume is hundreds or thousands times larger than your intended trade. So if you plan to buy 5,000 shares, I wouldn’t place the trade unless daily volume is >500,000 shares.

    Apart from your order being filled in "chunks", the other risk of trading shares that have low turnover is that the price quotes are less meaningful – the price can change dramatically between sporadic trades. But if something is selling constantly, the price movements are much smoother.

    Good luck!

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