tommyvercetti55

@MichaelGoode Hi Michael, I was wondering if you are able to trade OTC grey market stocks with IB? It's not letting me, saying "Trading in OTC grey market stocks is not supported". Really frustrating. Is there any solutions for this? Thanks!

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MichaelGoode
1
MichaelGoode Mar 12, 10:35 AM

There is no way around this -- if you have a position in a grey-market stock at IB they will let you call the trade desk to close it out. But they won't let you open new positions in grey market stocks. If for whatever reason you want to trade grey market stocks you will have to use another broker.

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tommyvercetti55

@MichaelGoode Hi Michael. You mention on your blog that you do not use TWS anymore, but you are still using Interactive Brokers. I was just wondering if you are using DAS connected with IB or a different broker for the charts and L2 but use IB to execute orders. Thank you.

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MichaelGoode
MichaelGoode Sep 26, 18 9:58 AM

I don't know where I would have said that -- I still use TWS. I do use DAS Pro with Centerpoint for level 2 and charts

tommyvercetti55
tommyvercetti55 Sep 26, 18 3:04 PM

Oh sorry, I didn't read that carefully. You replied to someone on your blog that you still use TWS but not time and sales and L2. Do you think DAS level 2 and time and sales is more accurate than IB's?

MichaelGoode
MichaelGoode Sep 27, 18 9:44 AM

TWS L2 & time and sales is just as good but I have always considered TWS charts ugly. I have used them in the past but I just find it easier to use DAS Pro and I have to pay for those charts / L2 anyway whereas I don't have to pay for the IB L2 if I don't want it

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tommyvercetti55

@MichaelGoode Hey Michael, I'm trying to see which fee structure is better for pennies. Tiered or Fixed (interactive brokers) Have you used both fee structure? If yes which one is best to choose? Thank you in advance.

MichaelGoode
1
MichaelGoode Jun 18, 18 1:28 PM

Either tier structure is expensive for cheap stocks (particularly under $1 per share). I recommend tiered if you buy on the bid and sell on the ask more often than not

tommyvercetti55
tommyvercetti55 Jun 19, 18 2:00 AM

Thanks Michael, I'm guessing tiered fee structure is best if you add liquidity to the market, and get rebates on that?

MichaelGoode
MichaelGoode Jun 19, 18 9:59 AM

Yes, if you add liquidity then tiered is best and overall it will be cheaper

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michaelstevens

@MichaelGoode Hey Michael got another question for ya. What problems might arise when trading Sub dollar stocks? I'd like to trade these (longs only) so I can take larger position sizes for larger nominal profits.

MichaelGoode
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MichaelGoode May 17, 18 2:01 PM

Keep in mind that what matters is not the price but the volatility. If you have a $10k position in a $1 stock and it goes up 10% you will make $1k. If you have a $10k position in a $10 stock and it goes up 10% you will still make $1k. So don't avoid trading higher-priced stocks for that reason. If you are trading Nasdaq stocks then all that matters is that your broker doesn't charge you per share commissions (or else it will get very expensive). If the stocks are OTC (most of the cheapest stocks

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michaelstevens

@MichaelGoode Hey Michael! What price action do you look for in overnight trades? Thanks.

michaelstevens
michaelstevens May 08, 18 4:54 PM

Does a strong close indicate a potential morning spike? Currently longs only for me.

MichaelGoode
MichaelGoode May 09, 18 10:01 AM

it does make it more likely to gap up but I don't find it that reliable

Freddieferber
Freddieferber May 16, 18 6:32 PM

Hello Michael... I just signed up for Silver and am happy to be here. Will not be sending many question, only a very occasional one if critical. Bought IHT today near close after the big dip. In at 2.35, did not bounce. Did not want to hold overnight re: not closing near hight. Cut losses quickly, out at 2.33 after holding to 2 min before close :-) . Any words of wisdom welcome as I am new but study and listen. Trading very small position instead of paper. Thanks so much. Freddie

Freddieferber
Freddieferber May 16, 18 6:34 PM

will probably stick to dip buy in the open.

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Gert112

@MichaelGoode I forgot to mention this. Tradestation does not offer shorting OTC securities priced<$2,5 - all other securities are allowed to short.

Scubajulie
Scubajulie Apr 22, 18 4:51 PM

Aloha Michael- I just watched lesson 9. Which APP do you use to update your news sources.

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Gert112

@MichaelGoode ... Great article on your webpage. https://www.goodetrades.com/2009/09/how-to-borrow-shares-to-short/ Just to inform and update you. I'm currently a Tradestation and Interactive Broker client. The Tradestation platform have a "Short Locate" function, which search for HB securities. About 20-30% of the times when IB does not offer shortable securities I can find them at Tradestation. It takes around 30 sec up to 15 min (80% of times I get an answer within 2 min) to get the answer from a "locate request" - using their inbuild platform locate tool.... Thank you for all your great work (I have recentley bought the (How to read SEC filings) I really like your in depth academic style YOU ARE THE MAN!

MichaelGoode
MichaelGoode Apr 09, 18 10:33 AM

Thank you very much for letting me know. I will update that blog post with this info

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scottniu

@MichaelGoode Hey Michael. Let's say you enter a trade. How much time will you give it if the stock can't make up its mind?

MichaelGoode
MichaelGoode Apr 09, 18 10:24 AM

It all depends on what my original timeframe and plan were. If I made a trade because of news that just came out I will usually give the stock no more than a minute or two to start moving in the predicted direction. If it is a morning trade I will give the stock less time than if it is an afternoon trade

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jordanpothier

@MichaelGoode Hey Michael, maybe you can answer a question for me? I am not sure if it is the platform I am using (thinkorswim) or if its something I did wrong but I tried buying 1k/shares of $KCPC and i received a message saying "REJECTED: Clients are unable to place a Market Order on an Opening Transaction for OTCBBN securities. BUY +1000 KCPC MKT". I have never received a message like this and not sure why or what that means besides the obvious. Can you explain?

MichaelGoode
MichaelGoode Mar 15, 18 11:33 AM

First, I recommend against ever using a market order, but if you do use them only use them for very liquid stocks that are not volatile. Your broker is protecting you from getting a horrid execution by preventing you using a market order on an OTC stock like $KCPC. Next time, just use a limit order and if you want to have a greater chance of it getting filled, place it a bit above the best offer

ProfitMe
ProfitMe Mar 16, 18 12:12 AM

Hey Michael, are you ever using Stop Limits or just Limits?

MichaelGoode
MichaelGoode Mar 18, 18 9:17 PM

When I do use stop losses I usually use trailing stops or I use stop limit orders (and set the limit far enough below the stop trigger price that I'm almost guaranteed a fill). I avoid ever using market orders

ProfitMe
ProfitMe Mar 18, 18 10:41 PM

Awesome, thank you very much.

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pohhoppoh79

@MichaelGoode Hey Michael! I just started learning. I'm not a US citizen and I want to start with $800, is it possible? or I need more money? Thanks!

MichaelGoode
1
MichaelGoode Mar 13, 18 9:51 AM

I have never used them so cannot recommend them but Tradezero.co is an option. But I really think it will be very, very unlikely for you to make money after considering commissions and fees starting with just $800

MichaelGoode
1
MichaelGoode Mar 19, 18 2:09 PM

Assume instead that you will do most things wrong and will consistently lose money when you start trading. Your only good option I think would be to study free material (plenty out there are on blogs like mine and Tim Grittani's) while saving up to fund a trading account with $2,000

pohhoppoh79
pohhoppoh79 Mar 22, 18 11:59 AM

@MichaelGoode Hey Michael! Excuse me ,I didn't see your answer. Yes, I think this assumption will be more correct, you're right. I will do as you said. I found in the Internet (Tim Grittani Trading Tickers DVD) for free. Price of this DVD $1,700. I will study all material from you and Tim. Thanks a lot! I really appreciate your help!

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