# 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?


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## 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.
> 
> ...




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.


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## 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


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## 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.


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## 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.


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## 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.
> 
> ...



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?


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## 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.


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## 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!


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## tuco (7 November 2006)

$500 note? I'm thinking counterfeit.


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## happytrader (7 November 2006)

Hi Tuco

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

Cheers
Happytrader


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## 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


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## constable (7 November 2006)

tuco said:
			
		

> $500 note? I'm thinking counterfeit.




they only circulate around ballarat!


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## 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.


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## 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.
> 
> ...




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


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## 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 !


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## 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%


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## 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?


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## 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.


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## skippyo (7 November 2006)

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


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## 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.


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## wayneL (7 November 2006)

tuco said:
			
		

> Here's my hot tip - property.
> 
> Shares are an hobby.
> 
> ...




Notwithstanding the benefits of property, trading can do as good or better as some here can attest.


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## professor_frink (7 November 2006)

tuco said:
			
		

> 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.
> 
> ...



Ok. Best of luck with it then.


			
				tuco said:
			
		

> 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.



for someone who claims to have made 7% in the last month from shares, that is quite an odd statement to make


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## tasmanian (7 November 2006)

$162,000 in 6 yrs.thats only $27,000 a year

a good trader with  $100,000 should do that.27% a year.with the market the way it is ive made almost $100,000 this year.and started the year with $120,000.

not blowing my trumpet im sure many have made alot more than me.

I believe alot more work goes into properties than researching companies.ive slept well every night but must admit a downturn is a sure thing sooner than later imo.thats the time to get out sit on cash no need to be greedy.

Im taking profits now slowly but surely.sure i could have made more but the market of late is pretty special.

Property is obvisouly a good investment but give me shares any day for less hassle.


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## tuco (7 November 2006)

wayneL said:
			
		

> Notwithstanding the benefits of property, trading can do as good or better as some here can attest.




No doubt that's also very true but I enjoy the lack of work load required with property and the rental income which comes with it.

At 44 I've achieved my 30 year goal of 7 digit worth so I'm happy to sit back and take it easy.


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## wayneL (7 November 2006)

tuco said:
			
		

> No doubt that's also very true but I enjoy the lack of work load required with property and the rental income which comes with it.
> 
> At 44 I've achieved my 30 year goal of 7 digit worth so I'm happy to sit back and take it easy.




We're all happy for you. So how long is it, so we can all compare?


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## It's Snake Pliskin (7 November 2006)

tuco said:
			
		

> 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.




Once again your comments display your weaknesses.


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## Wysiwyg (7 November 2006)

It's Snake Pliskin said:
			
		

> Once again your comments display your weaknesses.



Next stop.....mountain cave and incence. :bowdown:


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## wayneL (7 November 2006)

Wysiwyg said:
			
		

> Next stop.....mountain cave and incence. :bowdown:




I like Snakes one liners... very Tao


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## professor_frink (7 November 2006)

wayneL said:
			
		

> I like Snakes one liners... very Tao



If you can talk about it,
It aint Tao


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## Wysiwyg (7 November 2006)

professor_frink said:
			
		

> If you can talk about it,
> It aint Tao




Next stop.....mountain cave and incence. :bier:


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## Duckman#72 (7 November 2006)

wayneL said:
			
		

> I like Snakes one liners... very Tao




I like them too.

Sometimes I like to jazz them up a bit and add things like ......... "Grasshopper" or "Crouching Tiger" at the end of the sentences. Makes him seem even more full of scorcery and mysticism.

Duckman


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## wayneL (7 November 2006)

professor_frink said:
			
		

> If you can talk about it,
> It aint Tao




Ah yes, the dichotomy and enigma of the Tao.

"Those who know little, speak much
Those who know much, speak little."

*as Lao Tzu writes 81 verses on the topic lol

I suppose it is a lot less verbose than say the bible or koran... all relative I guess.

At over 3000 posts, I guess I better shut up then! hahah


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## Wysiwyg (7 November 2006)

wayneL said:
			
		

> Ah yes, the dichotomy and enigma of the Tao.
> 
> "Those who know little, speak much
> Those who know much, speak little."
> ...




After many trials and tribulations I sought solace from the man in the cave upon the mountain...
He said to me ..after enlightenment,chop wood and carry water.


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## Wysiwyg (7 November 2006)

wayneL said:
			
		

> Ah yes, the dichotomy and enigma of the Tao.
> 
> "Those who know little, speak much
> Those who know much, speak little."
> ...





After many trials and tribulations I sought solace from the man in the cave upon the mountain...
He said to me ..after enlightenment,chop wood and carry water.

I told him that I don`t have a fireplace and the water is on tap.


I read your posts and find them interesting.


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## chops_a_must (7 November 2006)

wayneL said:
			
		

> We're all happy for you. So how long is it, so we can all compare?




Bahaha!


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## MichaelD (7 November 2006)

"After many trials and tribulations I sought solace from the man in the cave upon the mountain..."

Ah, wise man, if you are so wise, why do you live in a cave with no electricity and no hot water.

"It's a tax deduction"

Ahhh, you ARE a wise man.


Hagar the Horrible.


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## bingk6 (8 November 2006)

spitrader1 said:
			
		

> 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.




Yes, I have noticed that too. Not long ago, NCM was the one that seemed decoupled because of their hedging, but now seem more responsive than LHG.


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## carmo (8 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.




When you say "Tax deduction" do you mean you simply just deduct the costs from your profits or do you actully claim a deduction as such?


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