.05 tick stocks

[Ryan W 76]

I know we traded KODK today and there are others that have popped up, but how do you guys manage the .05 tick stocks? Of course, the same strategies apply as if it were a stock trading with the .01 tick, but it's easy to take large losses on the .05 tick stocks and when they move, they really move (like KODK). Of course, taking a much smaller position would apply here, but was curious how everybody out there likes to trade (or not trade) these .05 tick stocks.

[Andrew Aziz 98]

Just go smaller and give it a bit more room.

 

Today I went 4000 shares on KODK, and I lost 5 cent on spread, so I was immideatly down -$200 unrealized , but it did worth it because I made over 2000 on it. If you have smaller $, then go smaller size. But I agree, 5 cent on a stock that is less than $5 is really big.

[anhkind 1]

It's all your calculated risk/reward ratio, just that.