I have my eyes on a micro cap stock for a few days now. This stock has a market capitalization of about $50 million. It trades for about 5 dollars and change on the NYSE. The trading volume for this stock is about 25,000 to 100,000 shares daily.
When the market opens around 9:30 am, I start monitoring the bid-ask spreads and place a limit order for the price I feel I am comfortable buying the stock; usually a couple of pennies below the bid price. I leave this order for about couple of hours but it never executes. Around lunch time, I try to change the order to something between the bid-ask spread. Still, the order does not get executed. Once I got frustrated and tried to place the limit order on the ask price and still it did not get executed.
I am not sure what is going on here. I have done the above exercise for a couple of days now but there is no luck with this stock. Is market order is a way to go? Is it a good idea to place a market order for a thinly traded micro cap stock?