Thursday, December 07, 2006
Wednesday, December 06, 2006
Penny Stocks : Investing Notes
OTC Level II
Level II Quotes are the pulse of the otc penny stock market. They will let you the penny trader see how a certain penny stock is being traded. There are usually 3 sections to the Level II screen.
- Current Bids
- Current Asks
- Time & Shares
Current Bids
Current Bids are the share prices at which penny stock traders and penny market makers are willing to purchase this penny stock for. This can be compared to going to a store and then telling the clerk that you'd like a certain item, for which they are asking $5.00 for, for only $4.50. You should note that takes a bit longer to buy a penny stock at the bid, but you'll be able to acquire the penny stock at a cheaper price.
Current Asks
Asks are the prices at which current shareholders are willing to sell their shares for. So, to go back to the store & clerk example. The asking price is $5.00. So, the clerk has put his shares for sale at $5.00 each.
Time & Shares
Time and Shares will show you the trades that are currently being excuted for the penny stock you are watching. Like watching the checkout counter at our example store. You see each order going through and at which price it is executed at.
Well that's the end of our penny stocks trading lesson for today. Go Trade and Have Fun!
T