You mean the minimum value of the stock is known so all you have to do is buy the stock of a bogus shell company at its known minimum value and then wait until it goes up to its known maximum value and then sell? Gee why didn't I think of that?
If you see markets that are essentially flat but with consistent alternating trade prices it is because someone is making a market with wide spreads. So the high trade is at the ask and the low trade is at the bid. If you try to beat the market makers at this game, they will eat you.
The problem is with both the volatility and volume of shares traded. Your stop loss might get executed WAY below your execution point or the limit order never gets executed because the price blows right past it. Trading penny stocks is more risky than gambiling.
Rather than put $100. in a penny stock, put $100. in IBM, T, PG, JNJ or XOM. In 20 years you will be glad you did.
Investing is a long term proposition.
You are just "gambling". I recommend the track (fresh air) or the lottery.
If a stock at 10cents or less fluctuates by ip to 3 cents back and forth in a day. What is the downside to buying with a stop or limit order at the minimum and selling with a stop or limit order at the max/average?
I don't think I'm the smartest person in the world, so I figure there's a reason why you don't hear about everyone doing this.
