Understanding daily stock data

[fatal.lordes]

Okay, this is going to sound really stupid, but I'm completely new and I've read the education stuff on the ASX website but no where does it actually tell you how to read the charts on their site (unless I completely missed it). I'm talking about the ones that look like this:

Code, Last, $+/-, Bid, Offer, Open, High, Low, Volume, etc

I understand most of it, but what has me confused is Bid and Offer. If I wanted to buy stock, it would cost me what is listed under the BID section, right? If I already owned the stock and wanted to sell it, it would sell for whatever is listed under the OFFER section, right? Or am I completely wrong? If my train of thought is right, I would have thought what I want to buy at and what it would sell at is the same price.

Anyway, any help would be greatly appreciated.

 

[Real1ty]

Re: How to read ASX shares?

Okay, this is going to sound really stupid, but I'm completely new and I've read the education stuff on the ASX website but no where does it actually tell you how to read the charts on their site (unless I completely missed it). I'm talking about the ones that look like this:

Code, Last, $+/-, Bid, Offer, Open, High, Low, Volume, etc

I understand most of it, but what has me confused is Bid and Offer. If I wanted to buy stock, it would cost me what is listed under the BID section, right? If I already owned the stock and wanted to sell it, it would sell for whatever is listed under the OFFER section, right? Or am I completely wrong? If my train of thought is right, I would have thought what I want to buy at and what it would sell at is the same price.

Anyway, any help would be greatly appreciated.

If you want to BUY a stock, you have to pay what the Offer price is.

If you want to SELL a stock you sell for the Bid price.

You can also BUY or SELL at your designated price but you will go in the queue and have to wait until your price is reached.

 

[fatal.lordes]

Re: How to read ASX shares?

Ah, so I had them back to front. Thanks for that.

 

[son of baglimit]

Re: How to read ASX shares?

f.l - the only stupid question you can ask is............

"should i buy/sell XYZ stock?"

you will either get abused for asking a stupid question (as it opens you up to the thoughts & ideas of morons), or you get the thoughts and ideas of morons.

get the picture.

 

[Neutral]

Reading stock figures

How do you interpret stock figures? I'm a beginner and only started out trading 3 months ago after I saw the success of various people with shares at my work. Seeing as I'm so new I'm like a sponge trying to soak up and analyse as much info as I can. The one thing that I am yet to understand is how to read the figures on some stocks daily activities.

For example St George (SGB) had a good run today after the merger anouncement with Westpac (WBC). After looking at the days figures on the ASX website I can't figure how % jumps & declines are calculated. Here are the figures for SGB from today:

Code Last % Chg Bid Offer Open High Low Vol
SGB 33.370 25.22% 33.340 33.450 34.150 34.200 33.000 16,916,293

How do you work out a 25% jump from an open of $34.15, a high of $34.20 and a low of $33?

http://www.asx.com.au/asx/research/...lts.jsp?searchBy=asxCode&allinfo=&asxCode=sgb

Sorry for such a newb question! Any help would be greatly appreciated

 

[Synergy]

Re: Reading stock figures

How do you work out a 25% jump from an open of $34.15, a high of $34.20 and a low of $33?

The % gain is calculated from todays close and the previous days close. So it's up 25% on yesterdays close.

 

[Neutral]

Re: Reading stock figures

The % gain is calculated from todays close and the previous days close. So it's up 25% on yesterdays close.

Ah, that makes much more sense! Thank you.

Another question I have if someone could answer this for me. Before trading opened on SGB there were offers of around $26.70.....but the data says it opened at $34.15. Shouldn't trading have opened at $26.70 and orders executed at this price? How does that work?

 

[cuttlefish]

To get a little philosophical - one of the important things to understand about the stockmarket as early as you can is that the idea of stocks having a 'price' is in some ways a myth.

A stocks price is always historical because stocks are undergoing a continuous live auction. The only way to purchase a stock is to participate in that auction. (this includes an open and closing price auction at the start and end of each day as well as the continous price auction that is effectively the market during trading hours).

So a stocks price is different depending on whether you want to buy it or sell it, in what quantity and with what urgency.

If you want to buy a stock immediately, its price is the price at the top of the offer queue.

If you want to sell a stock immediately, its price is the price at the top of the bid queue.

Even this is a misnomer - because the volume of the orders in the top line of the bid queue may not match the quantity you want to sell - so if you want to sell that quantity immediately and its larger than the volume of the top bid, then your price will be a combination of the first and second bidders prices (or more depending on the volume you want to sell).

On the other hand if you are patient you may get a better price by selling to the top bidder and hoping 'off-screen' bidders appear to fill your order. etc.

Understanding that this dynamic exists and is in constant ebb and flow is a very important thing.

So a singular 'price' for a stock is a myth - thus never pat yourself on the back that your stock is now up at X price or chastise yourself because your stock is now down to Y price.

Instead always know the price at which you are a buyer and at which you are a seller, based on your own investment goals and timeframes. (and adjust it whenever new information comes to hand that influences your price decision, be it technical or fundamental).

i.e. - know when to hold 'em, know when to fold 'em and never count your money while your sitting at the table.

 

[BigJohnny]

Re: Reading stock figures

Ah, that makes much more sense! Thank you.

Another question I have if someone could answer this for me. Before trading opened on SGB there were offers of around $26.70.....but the data says it opened at $34.15. Shouldn't trading have opened at $26.70 and orders executed at this price? How does that work?

Gday,

You may want to read the following as well.

http://www.asx.com.au/investor/education/basics/open_Close.htm

Cheers
BJ

 

[cordelia]

The stockmarket is like any market..people buying and selling things....However, in the stock market, people buy stocks with the specific purpose to sell them on, hopefully for a profit....Forget what you think a stock is worth or what anyone else thinks its worth..its all about what you can get for it. So if you see a bid this means that this is the price that someone is prepared to pay for it. On the other side is the ask...what a holder is asking for it......

You just need to have bought the stock when nobody esle wants them and sell them when everyone does...and that's the trick...i

It is such a simple concept but soooo difficult to master....if you figure it out let me know

 

[Neutral]

Thanks heaps guys for the responses. The more fundamental stuff I learn early on the better!

I'll let you know if I can find somewhere to buy a crystal ball cordelia