Confused... again...

[amy23l]

Ok I'm having a play trying to learn, prepared to make a mistake or 2 along the way so...

i bought a very cheap spec company at market price which was 0.001 (at least that was the last traded price) but the trade went thru at 0.0015

Then when the price went up I sold a portion of my shares at market price which was 0.002 but the trade went thru as only 0.001

So the trade cost me more than expected & the sell was less than indicated which instead of making me 100% it lost me money

I'm confused why this happened, all the trades for that day were at 0.002 so why did mine only go thru for 0.001??

 

[Lone Wolf]

Go to the link below and download the "getting started in shares" booklet.
http://www.asx.com.au/education/first-time-investors.htm

Page 9 talks about what is actually happening when you place a trade. What is the Bid and Ask?
Page 11 talks about Limit and Market orders.

In short, it sounds like you are using market orders. That being the case, if you hit buy, your order will be filled at the current asking price. But there also needs to be enough shares available at that price, if there isn't your order will get filled from the next available (higher) offer.

Take a look at the market depth, see where the bid and ask price is. See how many shares are available at the price you want to trade at.

Also a warning that I'm sure you're well aware of, if you're trading with real money before knowing the basics then your education might be more expensive than it needs to be.

 

[OmegaTrader]

Ok I'm having a play trying to learn, prepared to make a mistake or 2 along the way so...

i bought a very cheap spec company at market price which was 0.001 (at least that was the last traded price) but the trade went thru at 0.0015

Then when the price went up I sold a portion of my shares at market price which was 0.002 but the trade went thru as only 0.001

So the trade cost me more than expected & the sell was less than indicated which instead of making me 100% it lost me money

I'm confused why this happened, all the trades for that day were at 0.002 so why did mine only go thru for 0.001??

Is it wise to start trading speci's as a beginner.

That is the question

 

[Roller_1]

Agree why buy these dog stocks. If you are using $500 or whatever why not just buy $500 worth of telstra of a bank then you wont have that issue as much. You'll get less shares and sure won't double your cash (potentially) but less likely to get smashed too..

 

[Lone Wolf]

The OP has posted on another thread saying they bought some Telstra. They are looking for a mix of low and high risk stocks. I agree that speculative stocks aren't an ideal first choice.

In my opinion the OP needs to consider trading as a business and come up with business plan. What will you trade and why? What evidence do you have that your selections are expected to turn a profit? How much will you risk on each trade? How/when will you know you've made a bad selection and what will you do about it? etc.

But my experience is that people generally ignore the suggestion to proceed only after you have a plan. So in lieu of that, my only other suggestion is, don't lose so much that it becomes too late to put a plan in place. As long as you have capital you have the potential to recover from a loss. Lose all your trading/investment capital and it's game over.