When you send in an order to buy some shares in the stock market it does not mean the seller receives your request as soon as you hit enter or send. Your broker is the number one guy that sees your order, in order words he’s the middle guy. He, then has to do everything he can to ensure you get right service.
Nonetheless, every broker is not the same. Especially in the penny stock Market, there are many dishonest brokers who are careless for their clients, their only goal is to sell shares and make money. You have to ensure that the advice they are giving to you is not given in their interest. This does happen a lot in the penny stock market.
When you send in your order there’s always a chance that you may not get it for the price you want due to rapid changes in the stock’s price. That usually places your broker in a tough position where he would have to look through many options available to him to find you the right price.
Another aspect to consider in the stock market is having to receive a partial fill for your order. Let me give you an example as of why you may receive a partial fill order. Let’s say you are buying 500,000 shares from Horizon Energy Corp. (HORI), but the company only has 250,000 shares available for sale at time of your order. If you did not set an all or none restriction in your order, then they will sell you the 250,000 shares.
Your broker would automatically assumes that was your expectation. But if you do not want that to happen you would definitely have to put this restriction. It’s not a good feeling when a stock that you were supposed to have a large number of shares from goes 100% up in price for the day while you have only received half of your demand.
This is not inevitable in the stock market, those options were created to help us traders have some sort of control over our transactions. Which we hardly have in this type of investment market. If you are not using them, you are not taking this advantage given to you.
You Might Be Able To Speed up Your Transactions
In order to be capable of doing this you should know how many shares the company has in its position for sale. Once you have this information you should be able to at least have an idea as of how much shares you may be able to buy from them without having to wait too long.
Some brokers may take longer than others to execute transactions. This is another thing to consider when wanting to speed up your transactions.
Those of you who like to trade the pump and dump stocks have to buy as soon as the stock market opens. Remember there are millions of traders buying them in the morning to make quick profit. If you want your order to be filled quicker then you need to send it in at the earliest time possible.
Penny stock trading is dangerous but managing your time can be of benefit to you. The faster your orders are filled the more chance you have at winning for the day.