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
3
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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Pawluscha

@MichaelGoode Hey Michael, being a newbie who studies since months, I am very often calling on the right shares to buy or short but most of the time I am just too scared to actually pull the trigger. Then I often get into the position to really want to trade and most of the time do a stupid mistake with small losses. Any idea how to overcome this issue? Thanks!

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MichaelGoode
1
MichaelGoode Mar 02, 18 12:57 PM

As someone who is by nature very risk-averse I also have sometimes had the problem of not being willing to pull the trigger and make trades. I think that is better than the opposite problem because if you are overeager to trade you will likely end up losing lots of money quickly. What you need to do is increase your confidence. The way to do this is to track the setups you want to trade consistently so that you can see how reliable the pattern is. Then start trading very, very small (even a $100

MichaelGoode
MichaelGoode Mar 02, 18 12:57 PM

position size). After trading consistently profitably (excluding commissions) for a period of time you can gradually increase your position size

MichaelGoode
MichaelGoode Mar 02, 18 12:58 PM

The benefit of doing it this way is you will be correct in being more confident because you will have a record of trading well

Pawluscha
Pawluscha Mar 02, 18 3:08 PM

Thanks for your reply! I will definitely try doing this.

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William_Straya

@Jonk87 Hey guys, I was watching MBRX and I saw no filings mentioning public offerings previous to 2/16/2018. Then like the sketchy bio they are, the next morning they offer 9m shares. While i'm not surprised by this, I thought company's had to disclose previous to filing a 424b5, or can they file instantly and offer within 24hours? @timsykes @Huddie @RolandWolf @MichaelGoode didn't know who else to ask...thanks.

GT500
GT500 Feb 17, 18 2:46 AM

I have similar problem. I still don't know how exactly how offerings are made. More specific, I dont know what SEC file comes first out. Is it always first S-3, then they get EFECT from SEC and then company can do (whenever they want even a year later if they want to) ATM or 424b5? Where do I see is the offering is ATM? @tradescared, you should prbably know this.

Jonk87
2
Jonk87 Feb 20, 18 10:44 PM

best tihng to do is not over night long companies with no money or short term cash

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Tylan1993

@MichaelGoode Hey Michael! I have never made a penny stock trade before! I have studied patterns and charts before. My question, How do I execute the first trade? What would be the best broker to use for penny stocks. I most likely will start an account with $3000 ! Any help will be greatly appreciated!

MichaelGoode
MichaelGoode Feb 05, 18 3:22 PM

With $3k I would suggest either Etrade (better for shorting) or TDA. As to how to place the first trade, I know at least TDA has a good paper-trading system so you can practice there before you commit real money

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CK1

@MichaelGoode Hey Michael! I am a brand new Challenge student - so forgive me if this isn't the place for this. I just watched your video on "Margin, position sizing, and you (how to avoid blowing up)"... Loved it! Great job! Very well put! My question is... HOW do I get a working copy of the spreadsheet you were using? I want to use it "hands on" while watching the video (probably several times). Thanks in advance :-) Lovin the program so far! You guys all do a great job!

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MichaelGoode
MichaelGoode Feb 01, 18 1:24 PM

Spreadsheet is here: https://is.gd/riskreward -- To save a copy of the spreadsheet to your Google Docs so you can edit it, click on "File" then "make a copy". To download a copy to use in Excel or OpenOffice, click on "File" then "Download as..."

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tommyvercetti55

@MichaelGoode Hey again Michael, just a quick question, is it a good idea to use Interactive Brokers to trade stocks under a dollar? They charge a per share fee for Canadians ( CAD 0.01 per share, Minimum order $1) and I was thinking if I was to trade tens of thousand to hundreds of thousand of shares of an OTC/NASDAQ stock would the commission fees take most of my profits? I'm kind of confused here whether I should find a broker that charges a flat fee for low priced stocks or just use IB. Thanks!

MichaelGoode
MichaelGoode Jan 19, 18 10:37 AM

I use IB for low-priced stocks because most of the time I am shorting them and no brokers that have flat fee commissions will let me short stocks under a dollar but it is true that taking decent position sizes on cheap stocks will result in large commissions at IB. At least for US clients the max commission is 1% of trade value. If you do trade a lot of lower-priced stocks I recommend getting another broker for buying the cheap stocks

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Zohib

@MichaelGoode hey Michael do you know of any charting software that let's you look at intra day from the past?

Alex4Cash
1
Alex4Cash Jan 11, 18 3:27 PM

@MichaelGoode Yes it does! :) I love tradingview, amazing for drawings and fibonaci aswell

Zohib
Zohib Jan 11, 18 4:58 PM

Appreciate the responce guys

WoodbTrades
WoodbTrades Jan 11, 18 11:40 PM

I like it too because you can actually do paper trades as well for free, and you can backtest strategies

mufuroo
mufuroo Jan 11, 18 11:47 PM

TOS allows you to go to any time frame in the past.

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tommyvercetti55

@MichaelGoode Hi Michael, happy holidays! Just a question, have you ever used thinkorswim? It is now available for Canadian residents which is quite funny if you think about it, because TD is a Canadian bank and thinkorswim has only been available for US residents until now. As a Canadian resident I cannot use TD Ameritrade (I'm with TD direct investing) but I would like to know your opinion about the software, if its better than IB or not. Thank you! I watched almost all your youtube vids!

MichaelGoode
1
MichaelGoode Dec 27, 17 2:13 PM

I used TOS for a couple years 8 years ago. The TOS software is nice but not necessarily better than IB -- it is a lot easier to learn though

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RickTC52

@MichaelGoode hi Michael.. anyone here from Australia? Etrader dont accept Australian residents while IB dont offer short selling to us. i am having a hard time finding a decent broker to join. any recommendation please? thanks

RickTC52
RickTC52 Dec 21, 17 4:56 PM

@MichaelGoode ok i will look into that, thank you so much! in the meantime, what do you think about TradeStation? they are US broker that accept Australian residents. are they any good? thanks

MichaelGoode
1
MichaelGoode Dec 26, 17 3:23 PM

Tradestation is a decent broker but not at all good for short selling

Qtrader
2
Qtrader Feb 07, 18 7:03 AM

I personally use Tradezero. They clear through vision who is one of the clearing firms centrpoint securities use so they nearly always have the HTB stocks. Charting is not the greatest but can get by with it. I had same problem being Australian when looking for a broker originally.

harmonicb7
harmonicb7 Mar 18, 12:03 AM

Hi- I'm from Australia and haven't even started trading as yet. I'm watching all vids as many as possible and looking to tee up with someone in Sydney. I need to know what's the best broker and bank to go through in Oz too. I want to do trade in US time to early start day trade. I'm starting there, very small to see how I go.

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Zohib

@MichaelGoode hey michael. What do you think of suretrader to beat the pdt?

MichaelGoode
MichaelGoode Dec 18, 17 3:16 PM

Suretrader would work for that although with their high fees and poor customer service I certainly can't recommend them

Zohib
Zohib Dec 18, 17 4:56 PM

Awesome ty michael

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