People who buy little amounts of shares
- Thread starter LiL_JaSoN
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ignore them cover numerous time on this forum, algorithm and bot trading
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While we're at it, I've been wondering, if I want to avoid the $500 minimum and just buy $10 worth of shares, could I just buy, say, for example 510 shares and then do a sell order of 500 immediately after?
You can then you left with an unmarketable parcel, ie you cannot sell that $10 worth until you get another $500
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The Brokers - or more likely the big Instos - own those 'bots. So they don't charge themselves brokerage on every single trade; even the "better-equipped" online brokers will let their clients bundle a certain number of small trades (same share, same direction, same day) and only charge one brokerage per contract note.
PariTrade: http://www.paritrade.com.au for example, let me take up to a dozen little bites out of the same cherry and only charge once for the Total.
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man.. thats so weird
i thought bots were lonely little whooh bots with pocket munney buyin whittle shares..
now i hear they r instos..
crazy world..
imho bots are positive,, means they see value,,
i thought bots were lonely little whooh bots with pocket munney buyin whittle shares..
now i hear they r instos..
crazy world..
imho bots are positive,, means they see value,,
Wysiwyg
Everyone wants money
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It is a pointless exercise and should be banned. The amounts are too small to move the market, they have insignificant impact on the daily volume and only artificially inflate the daily number of trades. So really what is the point of doing it? Brokers ????
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There is a minimum sell amount as well?!?!
I asked this before and didn't get a response, but the general attitude seems to be that bots are used to keep prices down. If this is the case, why not use bots to bring BHP shares down to 10 cents?
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Bots are used to break down a large order. Thats all there is to it.
eg mkt depth shows 5k shares every level but Im a fund manager with 100k shares to sell i wont hit market. I'll get the algo to sell bits and pieces here and there. Program it to sell into strength or let the market drift up then sell etc.
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For the pros:
Is there any truth to small volume buying to test the waters? Eg. The indicators are looking good, but this share has burnt me before, Ill buy small amount eg. $100 to force me to watch it and commit larger if it shows signs of being a winner?
Is there any truth to small volume buying to test the waters? Eg. The indicators are looking good, but this share has burnt me before, Ill buy small amount eg. $100 to force me to watch it and commit larger if it shows signs of being a winner?
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Not that I know of.
Julia
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As far as I know you can't buy only $100 worth of anything.
And how will that prove a thing? Why not just paper trade or simply observe a company's performance before making a decision?
Either you believe something is worth buying or you don't.
Yeah I suppose your right. My thinking was that having actual shares in any quantity forces an eagle eye over prices movements, as opposed to the casual glance in free time.
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If you spread your buy orders over a day and end up with a marketable parcel, I'm sure you can take small bites. Since the advent of algothmic trading (aka "bots"), the ASX no longer insists (if they ever did) that you buy at least $500 worth every time; and online brokers have followed the trend and will allow you to buy a few here, a few there, then still charge you only one brokerage per contract note.
There are at least two ways one can take advantage of this opportunity:
- When a stock moves up and down during a day, buy some low, sell at resistance, buy back during the lunch break (quite often a time of lull), and sell back towards the end or top up if the chart suggests the rise may continue next day.
- When you are unsure whether the reversal is finding follow-through, buy only a small position at support; if your hunch (or chart reading) was good enough, keep buying until you have a full position. That way, you have a low-risk, low cost-base entry, which can be especially helpful for newbie traders, who find their insecurity psychologically challenging and tend to procrastinate even though they should know better.
Julia
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I've just run this by Etrade who contradict what you say. They say they definitely have a min parcel of $500 and that this applies to most other online brokers also.
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E*Trade may still have the old rule; and if they say "most other" onliners still have similar rules, they may also be correct. One of my former online providers had a similar rule - which caused the status change to "former".
:DYOR, and if you wish to trade more flexibly, change to one that offers more flexibility.
I know Commsec allow trades less than that although I did have a bigger order it was only partly filled. $200
Seller dropped price to sell me 2 units. Only 2 units traded at that price for the day. Somewhat annoyed but I guess that's the price of buying something with not much liquidity.
Seller dropped price to sell me 2 units. Only 2 units traded at that price for the day. Somewhat annoyed but I guess that's the price of buying something with not much liquidity.
