What amount should I sell my shares at?
I own a stock that’s about $17 market value. I’m a beginner. The stock went from $10 to $17 in a week. I tried to sell some shares at market value, but because it’s a pink sheet/OTC, I was told to set a limit order. Should I set it higher than $17, and approximately what amount?
Congratulations on making 70% in a week. Don't let it go to your head -- if you speculate in pink sheet stocks you are going to get slaughtered more than once. Be prudent, don't risk more than you can afford to lose, and be smart about researching the companies you invest in. This is the best advice I can think of for a beginner.
Now to address your question. Every stock has a bid price and an offering price -- for example, 17 bid, 17.05 ask. If you want to sell, put in a price limit at (or even a little below) the bid. Say, $16.99. That said -- and I am not certain about the rules for off-exchange stocks -- I believe that your broker is required to execute a market order. If you are entering the orders online and getting a rejection because they require a limit, use the $16.99 trick. If you have given a market order verbally to a broker and he is refusing it, he's a sleazebag. Once you have cashed out, close your account.
Penny stocks and other off-exchange vehicles are a demimonde inhabited by unscrupulous brokers and a beginner should be wary. It's a bit like being the mark at a poker table. They let you win a couple and then take all your money. Stop gambling. Put your account at a reputable brokerage firm and only buy stocks or funds that are listed on a national exchange (NYSE, NASDAQ in its various forms). You got lucky so you should quit while you are ahead. Instead, treat investing like what it should be -- a long term process that will build a nest egg that you can retire on. Be patient. It's like planting saplings. Good luck.
You should always use limit orders irrespective of what market it is. Market order in the thinly traded security is giving away all your gains to someone at another side. Use your discretion when setting up the limit order generally middle of the bid and ask price or close to last sale price.
Hi, It's doubful an adviser on this platform will be able to tell you at what price to buy or sell a stock without knowing what the stock is. My quick advice to you is this: if you are going to put money in individual stocks, you need to research and decide what a good price to buy (lower than you think it's worth) and what your sell price will be. The buy and sell prices should be in your head before you buy the stock.
There may be analyst reports you can read, or public records you can look at to determine what you think a reasonable share price is. If $17 is over the reasonable share price, sell. If it's under, maybe you wait for whatever event you think will take place to increase the stock's value.
If this all seems like a lot of work, it is. But, to be an effective stock trader, it takes time and willingness to reasearch the value of the companies in which you choose to invest.