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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: J Mako who wrote (44508)	9/22/2011 5:14:40 PM
From: E_K_S	1 Recommendation Respond to of 78740

Hi J Mako - Generally Pink sheet stocks typically trade with a large spread. When you buy or sell shares you should use limit prices and most of the time you can transact a trade somewhere in the middle of the price spread. This is important especially if the Pink sheet stock trades on little volume (this is referred to as thinly traded). Therefore if I have a low ball offer to buy shares at the Bid, and a seller has entered a "market" sell order, I will get the shares at my Limit Bid price. The difference between the best Bid and best Ask is referred to as the spread. On some of the Pink sheet stocks, this can be as much at 10%. That is why you must use limit Buy orders or Limit Sell orders NOT Market orders when trading in the Pink Sheets. If you search GOOGLE with some of these key words described above, you will get more detailed explanations. EKS