Topics include: How to buy a stock on the bid and sell on the ask, the difference between small-cap stocks and penny stocks, identifying potential short squeeze set ups, how to manage a trade entered based on an expectation of an upcoming promotion… Charts reviewed: ICPA, RARS, ULTA, GOOG, GWBU, DYAX, GBG, AGRT, GEN, CLNO, RHCO, SPY
Below is a text version of the submitted questions (italics represent Stockhaven’s comments):
1.) Yesterday you have talked about PCLN and CMG being option to buy at the bid.
So I have basic question. How do you buy stock on bid? You would have to “guess” the bottom from prior action and enter when stock is fading.(Otherwise you would not get filled on bid while it is going up since bid is going to raise as price goes up) That means you are not actually “confirming” a bounce from support, instead you are “expecting” the stock to bounce. What is the good strategy for buying with bid? (or if you are bear how do you sell on ask?)
take GWBU for example… yesterday’s low was 1.55 so if you put a bid in @ 1.56 (near support) going into today you would have filled on bid
2.) I know some stock are OCT and some are Nasdaq some considered penny
and some big board then others are referred to as small cap what is
the difference between small cap and pennies ? Thank you for answering
my question and thank you for not making me feel dumb for asking.
in general it is all about market capitalization:
Mega-cap: Over $200 billion
Large-cap: Over $10 billion
Mid-cap: $2 billion–$10 billion
Small-cap: $250 million–$2 billion
Micro-cap: Below $250 million
Nano-cap: Below $50 million
3.) a lot of people in chat often see a move higher and are quick to yell out “short squeeze” regardless of previous volume or any other indicator(s). Can you give an example of a REAL short squeeze and show patterns of stocks that 1) lure in shorts and then 2) press them to squeeze the price upwards?
first identify a stock that looks like a good short
4.) GPLS…This ticker I think is a P.O.S. but I want to get your opinion on it. I took a position in it a few days ago along with the volume breakout and almost shortly after the volume dried up. So far I am in the green on this but I haven’t been able to sell it. Im wondering in cases like this, what is the best way to go about getting into a stock that could potentially rocket up. AGRT was one that seemed similar to this before the close and we all know how that went the next day.
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