Here’s the Solution to “I Can’t Trade THIS Stock…”

Today we’re gonna talk about brokerages as well as being able to trade certain stocks. So maybe you’ve been there, you’ve tried to buy a stock and your order gets denied, and you’re trying to figure out why. Today I’m gonna give you some tips on how to manage that.

So today I’m gonna talk about a few little, kind of, minutia, but things I want you to know, because maybe you’ve been there, you’ve tried to buy a stock and that order’s got denied, or rejected by your broker.

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So there’s a few things I want you to know. Sometimes, if a stock is on the OTC exchanges, some brokers do not allow you to trade those. They will only allow you to trade listed stocks.

The NYSE and the NASDAQ stocks.

So that is something you wanna be aware of. You might type in one of these five digit tickers, some sketchy weed stock, and your broker won’t let you buy it.

What you wanna do, jump on chat with them, or jump on their customer service, and say, hey, can I trade OTCs? Because, depending on the broker, you may be able to fill out some paperwork and allow that. Then you’re good to go.

Flip side is, some brokers are just too risk-averse, and they don’t want you trading these speculative companies. So in that situation, you’re out shoppin’ for another broker. We’ve got a bunch of great deals with StocksToTrade, interactive brokers is probably my all time favorite.

Tradier, we’ve got a great deal with them. Unlimited commissions for a flat rate. Check out these other brokers if you’re looking to trade some of these stocks that are denied.

Risk Management

Next thing you’ll run into, and this can be particularly frustrating but it’s the way it is, I go back to that risk management idea.

Some of the, I guess I would call the bigger brokerage’s houses, the more established, the older names, they may not let you trade some of these really volatile stocks. They may see some 200% runner, some low float stock that’s gone from one to three, and they may simply say, this stock is too volatile, we won’t let you trade it.

It’s frustrating, it’s really annoying, and if you’re looking to trade these low price stocks that’s really probably the time when you’re looking to maybe move or diversify, I guess I would say, from one of these older, more conservative brokerage houses.

So that’s something that tripped me up in the past that can get pretty annoying.

Focus in Price Levels

Next thing I want you to focus on is there sometimes are price levels. Could be any exchange, whether it be an OTC, or a NASDAQ, or an NYSE. Some brokers just won’t let you trade stocks under a certain price, whether it be $2.00 or $1.00, 50 cents on down.

So that’s another thing that can trip you up. And then the last thing, and I’m trying to keep this kinda rapid fire, ’cause these are just kinda simple ideas, but the other thing is remember if you’re trying to short these low price stocks many, many, many brokers simply won’t let you.

So, be sure if you’re lookin’ to short low price stocks, you do your research and get the right broker. I’m not gonna name names, because it’s always changing on that short side. The borrows kinda come and go. So if that sounds confusing, check out some of our other articles.

Short selling has a lot of little tips and tricks that aren’t necessarily intuitive. So be sure you do your research before you short that first stock.

So let me know. Drop me a comment below. Have you ever tried to buy a stock and gotten denied by your broker? It’s annoying, especially on these big runners when you’re like, this stock’s breakin’ that key level, and you get denied.

So drop me that comment below, and I’ll look forward to seeing you in the next article.

Beer buff. Incurable zombie guru. Amateur introvert. Avid writer. Typical bacon junkie. Trader.