Question about buying thinly traded IBD stocks

Discussion in 'Trading' started by nwoptions, Feb 4, 2023.

  1. Hi all. I have experience paper trading stocks.

    Yesterday I decided to trade with real money. I trade VRTV. It was on Investor's Business Daily's Stocks on the Move list.

    It broke out of an intermediate base on heavier volume than usual.

    So far, I'm sitting on a profit.

    But the problem I'm having is that VRTV such a thinly traded stock. Yesterday only 218k shares were traded. Compared to TSLA, which traded 232 million shares yesterday, that's nothing.

    If I wanted to buy $100,000 worth of VRTV, what would happen? Would it take hours for the order to get filled?

    Would buying that amount of shares send the price skyrocketing?

    Thanks
     
    murray t turtle likes this.
  2. BKR88

    BKR88

    Traded more than $30 million yesterday.
    $100K isn't that much.
    Use limit orders. Scale in with multiple smaller orders on thinly traded stocks.
     
    ms33, MoreLeverage and nwoptions like this.
  3. $100K will buy you less than 700 shares of this stock.
    The stock markets are a whole lot bigger than you think.
    Next question.
     
    murray t turtle and nwoptions like this.
  4. Innervoice

    Innervoice

    They are tough to day trade although i trade STNG every now and then..
    IBD has some great idea’s but they are longer term trades.
     
    murray t turtle and nwoptions like this.
  5. d08

    d08

    At that liquidity, it depends on the time of day. Just after open or near close, easy fill. During the lunch hour, if you want to avoid slippage, it's going to take 5 or 10 minutes possibly. It all depends on how much slippage you are willing to accept.
     
    nwoptions likes this.
  6. tomkat22

    tomkat22

    Would need more info. Need to know what you're trying to accomplish,whats your endgame? What % do you plan to take profit? how long do you plan to hold it?
     
  7. ms33

    ms33

    Scary is when a stock trades 10,000 shares a day and the price never seems to match the brokerage screen. Or only ten minutes later. 218,00 shares is plenty of room. 700 shares vs 218,000 shares.
     
  8. %%
    I would be more concerned about the 10% gaps, but not with a daytrade;
    i allowed with position size a 50% gap for or against me, with any single stock.
    Seldom happens but has + could happen.
    Could go up 100% to $40 area then up again, VRTV has done that.
     
  9. Tavurth

    Tavurth

    I remember one of my first stock trades years ago, only had 1k in the account, not even enough for margin.

    Still, I moved that stock up a few ticks, before it slid down below my entry again.
     
    murray t turtle likes this.