Using a discount broker find a lightly traded stock.
By putting in a good to cancel order and a price 10% below the market
you can catch customers that do not put a asking price on their sales.
It's a non lose situation with a high yielding stock.
A no-lose situation that just you have found out in the stock
help. The stock I traded today was a royalty trust with a dividend rate of over 7 %. With commission rates so low, a buy/write strategy with stop losses is not bad.
I sold 5 Apple sep100 calls. With commission rate so low I can purchase the stock back at a later date. I'm expecting a BIG correction coming this fall.
Also at 76 it's not my money, but I have an managed account with ML.
I think a lot of older people own this stock because of the yield.
Also, when these folks pass away, either their attorney, relatives probably sell their assets.
Most will just put in a market order. I put in a low ball GTC.
This stock trades between 13-20.
I tried that for 5 years..never got one...
I see low sales on screen but I never
caught one...high speed cpus will catch
it...you might buy a 5 dollar stock for
4.50 on its way down to 4....being shorted. .
then you're stuck....plus you need to buy
10000 or more shares to make money ...
light traded stocks are usually bad
what OP is proposing is you find a stock that is thinly traded
his suggestion a stock that has high dividend
high dividend stocks tend to be part of elderly portfolios because they generate income -
the elderly die and the executors of their estates tend to want to quickly liquidate assets including equities .
so his strategy is to put in a low ball limit stock trade that is Good 'Til Canceled (GTC) .
since the stock is thinly traded -- noone will come in with market order
since your order is a limit order - you won't pay market rate for trade
there is a chance that you will get the stock for a step discount to the current market price.
this seems like a low risk / high reward strategy - the only downside is that it is probably difficult to find the perfect scenario in which the stock trade would be executed at a steep discount.
Yeah, sure...
Yeah, sure...
Maybe he can use the millions he's sure to make to pay for some english classes.
Not a strategy I would follow.
BTW, I assume you putting in a limit order as well as one that's good until cancelled.
Better yet, you've declared a no-lose situation on something that people can now take advantage of, eliminating your "edge". Bravo, all around...
I sold 5 Apple sep100 calls. With commission rate so low I can purchase the stock back at a later date. I'm expecting a BIG correction coming this fall.
Also at 76 it's not my money, but I have an managed account with ML.
and swing trade
can i ask a few questions
what stock did you do this with?
how thinly traded do you look for in this situation?
how much were you able to get filled?
did your fill cause the market rate price to drop
did you flip it immediately for the previous market rate ?
do you think the owner of the stock freaked out on their broker for selling their stock for 10% the market rate?
Also, when these folks pass away, either their attorney, relatives probably sell their assets.
Most will just put in a market order. I put in a low ball GTC.
This stock trades between 13-20.
and you lose money....did you watch 60 minutes
...the computers are rigged....I lost 50000
last year
never happened. ..are you surprised..I lost a lot buying
futures.
I see low sales on screen but I never
caught one...high speed cpus will catch
it...you might buy a 5 dollar stock for
4.50 on its way down to 4....being shorted. .
then you're stuck....plus you need to buy
10000 or more shares to make money ...
light traded stocks are usually bad
his suggestion a stock that has high dividend
high dividend stocks tend to be part of elderly portfolios because they generate income -
the elderly die and the executors of their estates tend to want to quickly liquidate assets including equities .
so his strategy is to put in a low ball limit stock trade that is Good 'Til Canceled (GTC) .
since the stock is thinly traded -- noone will come in with market order
since your order is a limit order - you won't pay market rate for trade
there is a chance that you will get the stock for a step discount to the current market price.
this seems like a low risk / high reward strategy - the only downside is that it is probably difficult to find the perfect scenario in which the stock trade would be executed at a steep discount.
You will not get rich quick but for young people you can get 8-10 % return on your money.