whisky6210 said:
How about sharing your story with us all.....you know, when you had the most memorable day on the market which put you on "cloud nine " for a week.
First foray into the market was with my manager at work. He plays the share market and I was new to it. He told me that he had a friend of a butcher, whose client was a secretary at a Biotech company, told him that the share price was going to rocket because of their new technology. My manager and I checked the price and sure enough it was rocketing up. We ummed and erred until we decided to buy. As soon as we bought, the price dropped. We bought at 2.42 and averaged all the way down to 1.30 two weeks later. It went down to 1.02 before we sold. As soon as we sold, the price bounced back up again. Not exactly cloud nine but a good lesson in how to turn 20k into 10k with relative ease....
Buy high and sell low....
Then there was my NAB call options (November last year). It had 25k profit in them with 4 days before expiry. I was so proud of my accomplishment that I printed the statement out so that I could adorn my wall with it (alarm bells were ringing in my head at this point - "don't jinx it"). Within a matter of days, the 25k profit turned into a 15k loss. I still don't know how I did it but I'm sure if you try hard enough, anyone could do it.
My best trade to date was last month. Three days before expiry for options, the RIO share price had been dropping 3 to 4 days in a row. On the Tuesday before the thursday expiry, RIO had been steadily declining all day. I bought 40 contracts for 4k at the close. The very next day, RIO started going up, up and up. I sold 20 contracts for 8k and took back my initial investment plus 100% profit (worst case scenario if RIO dropped down again). I sold the next 10 contracts for 8k before the price started ranging and in the last 30 minutes before close, it spiked again. I sold the last 10 contracts for 10k, so overall, I invested 4k and received 26k in return. 22k profit in two days trading. Looking back, I should have been able to get at least 30k profit out of a potential 40k return if I had played it better. Then again, I'm not complaining, the poor guy who bought the option from me would have lost 50% of value because the next day (expiry day), the price dropped 50 cents.