Trading Small Cap Stocks

One of the problems when trading small cap stocks is being able to get out when you want to sell. One surefire solution is never to trade low volume stocks in the first place. Make sure a stock above .10 averages 5 mil shares a day or more. Less than .10 make sure you have 10 mil a day or more!
When you are stuck in a thinly traded stock the spread will only get worse as time goes by, especially when volume dries up after a news release or a spike in volume. We are talking stocks with less than 100 mil market cap including micro caps. Sometimes you can't sell when you want to and you have your money locked up in a stock you no longer want to own.

Do you:
Dump at the bid... even though you stand to lose a significant sum from your entry point?
Hold Until another Spike... although a spike may never come?

In situations like this I watch the stock closely and make sure my ask is the lowest on LII. If someone is looking to get in make sure you are always the first on the ask. Will this always get you out of a position without losing a lot of money? Absolutely not. But you might be able to salvage some of your investment this way... and losing some money is not that bad.

For more advice and stock picks: http://www.pennystockforums.net

We might not always make 1000% trades (like Jimmybob) but we have fun and sometimes that can take the bite out of being stuck in a thinly traded stock.