Day trading strategies: the complete guide with all the advanced tactics for stock and options trading strategies. Find here the tools you will need to invest in the forex market

Penny Stock Level 2 Quotes
Once in a while, day traders look for a penny stock, although the name can
be a misnomer since, according to the Securities and Exchange Commission
(SEC), these stocks are those that have less than $5 per share value.
Some traders like penny stocks because there’s a lot of room for
appreciation, which means opportunities for massive return. Moreover, a
person’s capital can go a long way with penny stocks. For example, if a
person has $5,000, he can allocate $1,000 for penny stocks worth $3 each.
This means he gets 300 shares (rounded off to the nearest hundreds).
Compare that if he uses the same amount to buy shares worth $5.
However, there are several downsides with penny stocks. One, they are hard
to come by and they are thinly traded. Therefore, there’s not much technical
information you can use to make good decisions about them. Second, they
are usually not found in major exchanges because they have failed to meet
some of the requirements or criteria. You may also have issues with
liquidity, which means you may not be able to sell the stock quickly simply
because penny stocks themselves are not that liquid.
Nevertheless, if you want to give penny stocks a try, you can use Level 2
Quotes, which is obviously higher than the level 1 quote, which includes
the streaming quote. An important data available in level 2 quote is that of
the market maker or those who have significant control of the market,
including the brokerage firms. They are the ones who have massive
volumes of order sizes, which they are going to trade. Market makers meant
to earn a profit, so orders may be hold off until they know they can make a
gain. Traders in level 1, however, wouldn’t know that. In level 2 quotes,
traders can observe movements of money makers and see what stocks they
have the most interest.

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