Stock Trades Volume - Trading High Volume Penny Stocks
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Stock Trades Volume
Stock Trades Volume
Trading high volume penny stocks offers you the opportunity to buy and sell large amounts of shares without influencing the price of the stock. Large orders for a stock with low volume would move the price, making it hard to fill your entire order at the price that you have set your limit at. In contrast, high volume stocks offer enough volume to swallow up any reasonable trade without changing the price. Stock Trades Volume
Also as the volume increases for a penny stock more market makers join the action and set their own bid and ask [buy and sell price] for the stock. The competition between market markers is beneficial to investors since they are competing to buy your shares and sell you shares. The competition between market makers forces the price they are willing to sell you shares at down and the price they are willing to buy your shares at up. They know that if they offer you less than the other market makers for your shares your broker will route your trade to the higher paying market maker. The same process takes place with y our buy order; the order goes to the cheapest market maker.
A low volume penny stock usually only has one market maker handling the trading since there is not enough business to convince other market makers to make a market in the stock. Therefore, if you are looking to trade high volume, hot penny stocks, you'll be able to take larger positions without having to worry about whether your order will be filled or not. And often is the case that you can trade the same stock many different times over several months or years. Stock Trades Volume
Stock Trades Volume - Trading High Volume Penny Stocks