Short term trading

[tuco]

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]

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]

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]

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]

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]

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]

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]

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]

$500 note? I'm thinking counterfeit.

 

[happytrader]

Hi Tuco

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

Cheers
Happytrader

 

[professor_frink]

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]

$500 note? I'm thinking counterfeit.

they only circulate around ballarat!

 

[nizar]

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]

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]

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]

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]

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]

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]

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

 

[tuco]

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.