I have been on www.howthemarketworks.com for about 3 weeks now. I started with $15,000 in virtual money and am randomly choosing stocks between $0.01-$0.05. I have seen incredible returns....almost 100% in two weeks. I check the account each day when the market closes and sell off anything that made money. How close would this simulation parallel trading with real money? My thinking is that it would not be too accurate. Everytime that I purchase a new stock to replace the one I sold, I buy $5000 worth. This generally amounts to over 100,000 shares which seems like it would have a significant impact on the stock price in the real world. If anyone could offer some guidance I would greatly appreciate it.

Honestly: YOU ARE THE VERY FIRST I heard of to earn money with penny stocks. Congratulations! Kudos!Like one of my mentors says: "If it ain't broke, don't fix it."Whatever you're doing, keep doing it!Thanks for asking your Q! I enjoyed answering it!VTY,Ron BerueYes, that is my real last name!

It is not a good parallel. The reason is that virtual trading does not reflect the true market conditions that exist with limited bids and offers. Often the offer is only for 10-20,000 shares. Thus your 100,000 purchase will be executed at a higher price than that used for simulation. Likewise when you sell it will likely push the bid price down as true market demand may not support your full sale at the given price. Having personally purchased some thinly traded stocks I have lived through this pain. One good example is PBIO which despite being a $4 stock can move up or down 4% from a single sale due to limited availability of buyers and sellers and the wide spread. Also, although this may not be a huge factor in you given situation, keep in mind you'll have to pay a comission for each trade further eroding your advantage.

I think you hit the nail on the head, look at the volume of most penny stocks, you will see something that usually trades under 1million shares a day. (look at yahoo finance to see) If you buy or sell a huge amount of stock you can make the stock price swing out of control.I would be willing to bet you will have a hard time finding a reputable broker that will deal in significant amounts of penny stocks. When I traded on td ameritrade ( a couple of yrs ago) they would ding you with a penny a share for penny shares for each buy and sell.Lastly, much of the information on penny stocks is slow to market. Some stocks are quoting prices hours or days old.So you problems are:1)manipulating your own market2)finding a broker that will even deal with them3)paying a huge price for commissions4)quotes may not be reliable5)THERE IS A REASON THESE COMPANIES ARE NOT TRADING ON THE “BIG BOARDS”Buy quality hold long. Good luck trading.

Good info above ... but Ameritrade is the best broker for penny stocks now. Maybe for old Ameritade customers it was different but for TDW customers we always had it good.AMTD has NO extra charges for high volume, OTCBB or under 1$ share price.Buy 100k shares of a stock that costs 0.003 will only be 10$ commission.