Short term trading

tuco · 7 November 2006

I've been trading shares for several years and eventually noticed the way the price of a share rises and falls over a short period of time. I used this with stocks like CBA and NAB to buy low and sell high. Sometimes I'd only hold the stock for a week.

I've now progressed to LHG who's price varies with the gold price. I have $100,000 to trade with and in a period of 9 days in late October I made $5,700 in 5 short term trades. I made $7,000 for the all of October with a two week trading break mid October. Some trades were buy one day sell the next.

With the amount I have available the stock only has to go to a couple of cents to get into the 4 digit profit margin. The average share price increase was 5 cents or about a 1.7% increase.

I'm not greedy with my profits and I'd sell even for a few hundred dollars profit. I'd rather sell and make a few hundred than see the price rise then fall then have to wait for it to go up again.

Does anyone else go with the short term buying and selling?

Does anyone else have an interesting strategy?

spitrader1 · 7 November 2006

tuco said:
I've been trading shares for several years and eventually noticed the way the price of a share rises and falls over a short period of time. I used this with stocks like CBA and NAB to buy low and sell high. Sometimes I'd only hold the stock for a week.

I've now progressed to LHG who's price varies with the gold price. I have $100,000 to trade with and in a period of 9 days in late October I made $5,700 in 5 short term trades. I made $7,000 for the all of October with a two week trading break mid October. Some trades were buy one day sell the next.

With the amount I have available the stock only has to go to a couple of cents to get into the 4 digit profit margin. The average share price increase was 5 cents or about a 1.7% increase.

I'm not greedy with my profits and I'd sell even for a few hundred dollars profit. I'd rather sell and make a few hundred than see the price rise then fall then have to wait for it to go up again.

Does anyone else go with the short term buying and selling?

Does anyone else have an interesting strategy?

LHG, for the moment has somewhat decoupled from the gold price. I bought in at 2.75, only to watch gold rally approx 30 bucks and the stock move up to 2.80. I would be carefull doing this with LHG.

tech/a · 7 November 2006

A brief intro to the way I technical trade short term here.

https://www.aussiestockforums.com/forums/showthread.php?t=4650

It's Snake Pliskin · 7 November 2006

tuco said:
I'm not greedy with my profits and I'd sell even for a few hundred dollars profit. I'd rather sell and make a few hundred than see the price rise then fall then have to wait for it to go up again.

No offence Tuco but the above comment displays your weakness.

tuco · 7 November 2006

No offense taken, I'm not going to learn in I'm not told of my weaknesses.

I forgot to mention I don't use the entire $100,000 in one trade. I only use about half.

professor_frink · 7 November 2006

tuco said:
I've been trading shares for several years and eventually noticed the way the price of a share rises and falls over a short period of time. I used this with stocks like CBA and NAB to buy low and sell high. Sometimes I'd only hold the stock for a week.

I've now progressed to LHG who's price varies with the gold price. I have $100,000 to trade with and in a period of 9 days in late October I made $5,700 in 5 short term trades. I made $7,000 for the all of October with a two week trading break mid October. Some trades were buy one day sell the next.

With the amount I have available the stock only has to go to a couple of cents to get into the 4 digit profit margin. The average share price increase was 5 cents or about a 1.7% increase.

I'm not greedy with my profits and I'd sell even for a few hundred dollars profit. I'd rather sell and make a few hundred than see the price rise then fall then have to wait for it to go up again.

Does anyone else go with the short term buying and selling?

Does anyone else have an interesting strategy?

yeah on certain days I'm in and out like a madman, hoping to make money in the space of a few minutes/half hour. I call those days "weekdays"

Won't brokerage kill off most of your profits when your trading shares for a few cents at a time?

tuco · 7 November 2006

What's a $60 brokerage fee (buy and sell) when you make $1000+ in a trade?

I'm happy, it's a tax deduction.
Even in smaller trades a few hundred profit is a few hundred more than I had a few hours earlier. Call me Mr glass half full.

constable · 7 November 2006

I hope the following analagies (hope thats spelt right ,am trying to look smart) are helpful:
Many small fish make a great meal!
If you saw a $500 note lying in the grass on a very windy day would you hesitate to bend down and pick it up ?
Dont underestimate the volume created by the sheep!

tuco · 7 November 2006

$500 note? I'm thinking counterfeit.

happytrader · 7 November 2006

Hi Tuco

Congratulations sounds like your personality is particularly well suited to short term trading.

Cheers
Happytrader

professor_frink · 7 November 2006

tuco said:
What's a $60 brokerage fee (buy and sell) when you make $1000+ in a trade?

I'm happy, it's a tax deduction.
Even in smaller trades a few hundred profit is a few hundred more than I had a few hours earlier. Call me Mr glass half full.

Is that all it costs for a $50 000 trade? That's a whole lot cheaper than I thought. I withdraw my previous comment

constable · 7 November 2006

tuco said:
$500 note? I'm thinking counterfeit.

they only circulate around ballarat!

nizar · 7 November 2006

professor_frink said:
Is that all it costs for a $50 000 trade? That's a whole lot cheaper than I thought. I withdraw my previous comment

westpac and commsec i know once the trade is about $10,000, its no longer $29.95/trade, it becomes like a % of the trade.

for a $25k trade, expect to pay $150 for brokerage buy and sell.

im not sure which broker tuco uses, ill be keen to know though.

Etrade its $32.95 flat upto $30,000, which is heaps better.

tuco · 7 November 2006

nizar said:
westpac and commsec i know once the trade is about $10,000, its no longer $29.95/trade, it becomes like a % of the trade.

for a $25k trade, expect to pay $150 for brokerage buy and sell.

im not sure which broker tuco uses, ill be keen to know though.

Etrade its $32.95 flat upto $30,000, which is heaps better.

I use www.avcol.com.au They start at about $19.80 for under $10K.

constable · 7 November 2006

tuco said:
I use www.avcol.com.au They start at about $19.80 for under $10K.

on westpac today 21k trade still only cost me 29.95
40k trade cost 59.99 very cheap me thinks !

tuco · 7 November 2006

Avcol fees

Internet Trading
Transaction Amount Brokerage
$0.00 - $10,000.00 $19.80
$10,000.01 - $30,000.00 $29.70
$30,000.01 - $80,000.00 $62.70
$80,000.01 + 0.077%

professor_frink · 7 November 2006

tuco, if you don't mind me asking, when did you start trading this way? You mentioned the money you made during October, was this when you started your short term trading?

tuco · 7 November 2006

professor_frink said:
tuco, if you don't mind me asking, when did you start trading this way? You mentioned the money you made during October, was this when you started your short term trading?

No. I've been doing it off and on for years. I only do it when I have some spare time.

I've made about $9k 06/07. Most of that since putting more time into it over the last month.

Every time I get into it I wonder why I don't get into it on a more regular basis.
I don't need to work but it keeps me busy during the day. Trading is more of a hobby, if I we need some extra cash then I do some trading.

skippyo · 7 November 2006

Hey Tuco got any hot tips. you seem to be quite successful!!!

tuco · 7 November 2006

skippyo said:
Hey Tuco got any hot tips. you seem to be quite successful!!!

Here's my hot tip - property.

Shares are an hobby.

Even with all the stamp duty and associated fees I've made way more with property than shares.

Our home has tripled in price which is good because we own it, not the bank.
One of our units has gone from $138,000 to $300,000 in six years. It'll be water front soon if the global warming continues. I'd like to meet the person who can make $162,000 from shares in six years!
Imagine the capital needed to do that.
Imagine the lack of sleep having that much invested in shares.
Image the research needed.

Short term trading

tuco

spitrader1

tech/a

No Ordinary Duck

It's Snake Pliskin

tuco

professor_frink

Moderator

tuco

constable

tuco

happytrader

professor_frink

Moderator

constable

nizar

tuco

constable

tuco

professor_frink

Moderator

tuco

skippyo

tuco

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