Board 8 > Stock Topic 21

(+) Yeah! (+)

New content, same name. Forever.

Sunroofs plays:

• Hawk ERs and get in both on the hype and results. This means buying ~2-3 weeks prior to earnings and selling the day after earnings or so. Only pick stocks that you like, in the event they miss expectations!
• Be aggressive! Buy those volatile stocks that have potential to go up double digits in short bursts.
• Crypto is the future. Maybe. Definitely worth a gamble though. Get some skin in the game and forget about it, and check back once the news tells you a major spike happened.

if youre in on BTC make sure you keep your mind on holding until at least 2024. Dont panic if things drop significantly between now and then.

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I look at it as a cross between a stock and retirement fund, in terms of length to hold.

https://docs.google.com/document/d/1drTVbBuGJ2VnojlLc287r1nKPT_6Btyvnx7CIK7XURw/edit?usp=sharing

Here's a link to a little DD summary someone on the discord made for AVCT, since I know some people are thinking about hopping in on the warrants. Know what you hold, and let's all get rich on AVCTW together.

E: They are doing their first call this ER though, so that last bearish point on there at the very end is wrong now.

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I put in a purchase order for AVCTW but it is pending. Im sure theres a reason for this and Im hoping it doesnt go through at some higher price.

Ummmm. Rejected...

Sunroof posted...

I put in a purchase order for AVCTW but it is pending. Im sure theres a reason for this and Im hoping it doesnt go through at some higher price.

It has really low volume of late, so it might be hard to make a big purchase all at once.

We saw 50 million volume in a day once on the commons, so I'm sure volume will pick up again soon

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Oh. So I have to do fewer shares.

Because you put in a market buy order with a quantity almost that of the daily volume lmao

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Were you trying to buy on margin? Don't think you're allowed to buy warrants on margin if they're under $5.

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Well fuck this. It just went to .69!

I never buy on margin.

lmao Cole. Okay, I see.

@Sunroof this is important. Do not use a market order for buying large shares of this. You might end up buying half your shares at $1+

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Okay so do limit. Thanks. I will do it for .60.

Dammit Moonroof your buy just sent the price up too much!

Why couldn't you have waited to see if dropped to the .50s and bought then, after me

E: wait that wasn't you?

the plot thickens

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It didnt go through!

Yes, do not use market orders for illiquid stuff.

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Yeah, gotta do a limit order on that one. I got one in at .68

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I had no idea. Good catch.

I will do a 60 day limit for .61.

Colegreen_c12 posted...

@Sunroof this is important. Do not use a market order for buying large shares of this. You might end up buying half your shares at $1+

I watch AVCTW a lot, and I'm pretty sure there are people who sell at like $1 post market just to see if anyone accidentally market orders and their order gets filled. And there's usually a tiny bit sold too!

now that's free money

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Moonroof trying to blow up he market at any cost

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I should be able to own 80% of the entire stock if I want

I'm not totally certain if this is true, but according to people on Reddit, someone inadvertently bought GME calls for $4,400 a share (that's $440,000 per call) because they sent in a huge market order and that was momentarily the lowest ask. That really really sucks.

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Sunroof posted...

I should be able to own 80% of the entire stock if I want

Someone in the discord literally owns 3 million warrants; you're a drop in the bucket buddy

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red sox 777 posted...

I'm not totally certain if this is true, but according to people on Reddit, someone inadvertently bought GME calls for $4,400 a share (that's $440,000 per call) because they sent in a huge market order and that was momentarily the lowest ask. That really really sucks.

I would believe it. I think this is part of the reason a lot of brokerages put in restrictions on putting up limit sales way above the ask price.

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Youre just jealous I almost owned it outright.

Moonroof this is a omega huge lesson you need to learn here. Most stocks have millions or billions of stocks outstanding and can have hundreds of thousands or millions of shares changing hands every day. With all of that volume, the trades that we make here are just a drop in a bucket and have really no impact on prices

But if you go into a stock with very little volume and waive your big dick around, you will have a drastic impact. If people are only selling 1-2k shares at a time for 70 cents and you come in an place a market order of 36k shares, you'll immediately buy those 70 cents shares, and then some more shares listed at 73 cents, then some at 80 cents, then some at 90, then some at $1, then some at $2 because people have set limit prices at some arbitrary place up, and your market order will just keep searching for the next available price until it fills 36k shares. The volume just doesn't exist to fulfil your order so it will keep going up.

This should sound familiar - because it's what we were trying to force the hedge funds to do with GME in the short squeeze. Your broker just saved you from learning this the very hard way.

Warrants in particular are very low volume, because they are issued by the company intentionally as potentially extra shares that could be exercised and added to their existing pool of shares.

So whenever you are placing a big order you should default to limit unless you are very sure the volume is there to handle it. By default you should probably assume that it isn't and rely on limit orders.

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Everything Cly said is very important. Never ever market order on something so low volume. Check level 2 and you can see the upcoming bids and asks too.

I think buying warrants all at once is kind of dumb in the first place (unless you're getting in something really early, but AVCT has been a post-SPAC company for half a year now). I usually do no more than a 10k purchase at a time and slowly average in. I get it that AVCT has ER and a call coming up and will likely run on hype for that either way, but there's still time.

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Oh boy. So by doing limit, does that prevent it from going up and up? In other words, will it only hit if ALL the shares hit the limit price?

I also only did $9k worth of shares rather than $25k, in my limit order.

Sunroof posted...

Oh boy. So by doing limit, does that prevent it from going up and up? In other words, will it only hit if ALL the shares hit the limit price?

Yes, your order will only get filled at the price you set

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Do note that unless you do an all or nothing order you can get partial fills with limits as well.

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How does that work for an order of 10k shares at $.60, but there are only 5k shares trading at that price?

Okay got it. Thanks.

Depending on whether you've set it up as an all or nothing order, it may or may not fill for less than all of the shares you want. But that's usually not a big deal.

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Sunroof posted...

How does that work for an order of 10k shares at $.60, but there are only 5k shares trading at that price?

It will partially fill until someone sells you the rest. Or it will stay partially open forever if no one does.

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Actually, I think it's good practice to just always use limit orders and never use market orders. I'm having a lot of trouble thinking of a situation where there is a real advantage to using market orders.

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I love Nio Kun

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red sox 777 posted...

Actually, I think it's good practice to just always use limit orders and never use market orders. I'm having a lot of trouble thinking of a situation where there is a real advantage to using market orders.

The only time I use them is in a highly liquid stock that is climbing cause I don't feel like putting in a limit and it keeps climbing and having to change the limit.

So honestly almost never

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So quick way to remember getting limits to execute immediately:

Buy: set limit price HIGHER than current price
Sell: set limit price LOWER than current price

Is that right?

Sunroof posted...

So quick way to remember getting limits to execute immediately:

Buy: set limit price HIGHER than current price
Sell: set limit price LOWER than current price

Is that right?

Not really. Just look at the bid and ask.

Ask is what people are currently asking for the stock. So if you want to buy you put in your limit at the ask and you will have at least a partial fill.

Bid is what people are currently asking to buy a stock for. So if you want to sell you put in your limit at the buy and you will have at least a partial fill.

*This assumes they don't change before you put your order in.

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During the first day of GameStop hysteria I actually had a 0 cost option move pending just to maybe catch a moonroof in the chaos. It was something like

Sell 55 Put
Buy 60 Put

Limit price 0.00

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They normally do change in those brief few seconds. Thats why I tried simplifying it for myself.

Here's something that might clue you in to what's going on here with Limit orders.

If you set a buy order at 70 cents, it will purchase all sell orders that are set at 70 cents or anything price below that (like 67 cents) up until it fills your share number. If there aren't enough shares available (or none at all), it will partially fill what it can and then sit there offering 70 cents to anybody who will sell at that price. This means *you* are the Bid price when people look at the stock. There might be somebody with a sell order of 75 cents as the current *Ask* and someone might see the current price and say "alright fine i'll get rid of it for 70 cents and place a market order or a sell limit order at 70 for you.

They might also see an average price of 73 cents and place a market sell order thinking it will be 73 cents... but it'll go to you for your 70 cent limit price. So that's another lesson to learn with market orders - you need to be acutely aware of what the bids and asks are.

It's the same thing on the flipside - if you decide to dump your shares at 75 cents it will find to anybody who has a limit order above that (like at 80 cents) down to 75 cents, and if it still has volume to fulfill it will set an offer of 75 cents to any buyers, making you the "Ask" price.

Limit orders are actually where the Bid and Ask prices come from.

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Okay, that does help make sense to me. I still dont mind doing market purchase for bigger stocks though, but I will do limit for these smaller ones.

Here's a picture example of buy/sell limits and how they affect and are affected by the market orders from a sub-penny crypto i've been making some money off of for a couple days:



Everything above the mid point (in red) are the Limit Sell orders that are parked on various amounts.

So at the time this picture was taken there were a total of 15,088,988 tokens on sale for .0034 apiece from different people's Limit Sell orders and a total of 30,069,596 tokens on sale for .0035 apiece. So if you put in an order for 13,000,000 tokens you would pay .0034 for your entire order, but if you put in an order 18,000,000 tokens then you would buy ALL of the .0034 listed tokens and SOME of the .0035 order tokens.... And if you pull a Moonroof and put an in an order for a BILLION tokens then you would buy all the .0034 and all the .0035 and all the .0036 and all the .0037... etc etc.

And everything below the midpoint is the Limit Buy orders that are parked on various price points (in green).

And so if you already have some coins and you want to sell them you can just put in a market sell order and you'll get the highest price that is being parked by the Limit Buy orders, in this case .0033 per token. But if you have 50,000,000 tokens and you put in a market sell order you wouldn't get that price for all of them because you would have filled all the .0033 orders and the remainder of your sell would start filling the .0032 orders and so forth. So it would be a better idea to set a limit sell yourself. So if in that scenario you set a limit sell for 50,000,000 tokens @ .0033 you would fill every .0033 limit Buy order and now you would have a standing Limit Sell order (which would move up and be listed in red) for the remaining 15,715618 tokens that you were trying to move. Or if you didn't want to make waves on the market buy/sell price you might just move 5,000,000 tokens at at time and give time for the .0033 orders to be replaced by other orders and make your sale in chunks.

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I cant believe how envious you guys all are that Id be CEO of AVCT.

You wouldn't be. AVCT has a market cap of 156 million.

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Sometimes I think the people in this topic cant take a joke