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What caused a spike in Fire River Gold?
Yesterday the TSX was closed but Fire River Gold on the Pink sheet FVGCF spiked up from .08 to .16 cents with a volume of 22.5k. anyone know why? Or is it just a fluke?
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Re: What caused a spike in Fire River Gold?
Two possible solutions here, check on your brokers policy, most will not charge a second fee if the remaining requested shares are found at an acceptable price the same day. IF you are monitoring your portfolio then the thing to do after the partial fill is reported is to "CANCEL" the original order so they marketmaker can not assign te remainder and charge a second fee. You can always place a new order and at a different price on another day if you did not originally get the number of shares you wanted.
thinker70
Re: What caused a spike in Fire River Gold?
Thank you all for your informative comments. To add to the conversation I like to use a limit order with the specification of (all or none) so I don't get hit with more than one transaction fee.
Thanks Don
Re: What caused a spike in Fire River Gold?
Hi thinker70.
I Iappricate your and the others your comments about placing orders, Iguess only some brokers will let you do certain things (stink bombs) or what ever else..Let change a few things for the moment, I place an order for 15k shartes on Sunday nite, so it will be there in the morning when things open..Place a limit on it for today only. I tracked it through an
who ever shifted the funds gets me. For example they only placed 2/3 of my order 4 hrs, after opening time, again tracking it through, the other 1/3 was place at 1:59:59, after the market went up ,causing me to pay at a higher price different form what I placed at..It ended up in the red that I owe them.
So I begin to wonder if all the shares were limited , bid asked or what ever do you guys have this problem too.,
Woulf love to hear for you.
Thanks again for your comments
You take care
Re: What caused a spike in Fire River Gold?
Good confirmation by scottiepimps59, sorry I missed the almaden drop, would have liked to buy it, oh well, may happen again. For the truly observant market watcher there are stocks that regularly SWING within a tradable range where you can sell at the high and buy back at the low.
My advice to dogfight, if you really want some stock in Fire River, (and they are restarting a previously producing mine), try the "stink bid" routine. For myself I may just put in a "Stink Bid" SELL @ .19 and see what happens. Would be happy with the profit and if some news comes out that justifies the increase usually you can count on a drop back to more normal levels after the initial euphoria wears off and pick it up again at a lower price.
This type of "swing trading" can be very profitable on cheap but liquid stocks in a range bound market once you define a reliable pattern of stock movement.
thinker70
Re: What caused a spike in Fire River Gold?
Stink bids work great!
Especially when you have these manic depressive breaks in the market. Just as an example, Almaden's NYSEAMEX listed AAU dropped from a close of $2.13 on 7/31 to $1.80 during the Knight Capital sourced flash crash the next day. What a great way to get a 15% discount on a quality company!
I think its also a good idea to place high sell orders on your positions. e.g. putting in a sell order for GPD at $3. Who knows, someone might make the mistake of placing a market order while trading is very thin and may end up paying $3 for my shares!
Re: What caused a spike in Fire River Gold?
I learned the lesson early, I very rarely use a market order, too many games that can be played by the marketmakers. I almost always use limit orders to define the most I am willing to pay. There is however another tactic that has worked well for me in volatile or low volume markets. STINK BIDS can take advanatge of daily volatility in a stock on EITHER the buy or sell side. Examples: if their is a stock that you want to buy but the price being asked is above what you are willing to pay then a "stink bid" limit order below the normal BID price may get you filled if you are patient. The reason may be someone selling to meet a margin call or other reason to raise money who accepts your bid after other orders have been filled at the bid price.
The other side of the coin is when you are approaching a price on a stock where you have a pre-determined profit point that is slightly above the current ask point. Put your "ask" price as a limit order as a "stink bid" above the ask shown and you still might get filled by someone who may desperately want that particular stock and the quantity you are offering matches his/her order.
I virtually always use this tactic and have had many orders filled at as much as 10% differential from the bid/ask spread to my advantage, and that can make a BIG difference to your bottom line. You never know the reasons WHY other investors may be buying or selling a particular stock, so no matter what the market as a whole is doing you can maximize your profits with stink bids.
thinker70
Re: What caused a spike in Fire River Gold?
Hey Lloyd,
The number of shares is always defined when you place a bid. However, the price isn't always defined. You can bid for shares at a market or at a limit price. Placing a "limit order" means you are setting a limit to the price you are willing to pay for each share. For stocks which are trading at low volume, there isn't much of a market and so it is tougher to match a buyer with a willing seller (or vice versa).
What I'm suggesting is that whoever placed their order for FVGCF shares set their bid at market prices and because the asks are so thin, it is possible the next available ask was at $0.16. If the bidder would have instead set a limit price of $0.08, the order would have probably sat unfilled until a seller's ask came down to meet the bid. Average daily volume for FVGCF is around 15.5K shs.
For a high-volume stock such as MSFT which has almost 40M shs trading daily, you could probably set a market order and still get a good price given that there is a highly active and liquid market for its shares.
Hope that made sense.
Re: What caused a spike in Fire River Gold?
Scottie
Could you clarify " limit orders " in your last comment. If I want a 100 or 1000 shares of a stock what low volumn got to do with it?????
Re: What caused a spike in Fire River Gold?
Market order on a low volume stock.
Always use limit orders or you may end up paying 16 cents for an 8 cent stock.
Re: What caused a spike in Fire River Gold?
It's just a fluk, had several cases of this happening to me on other stocks. Went after my broker about this and they could find no reason for it to happen. Sometime when your in doubt ,check it with another broker , or go to stochouse listings.
You take care