I know nothing about trading, so please stifle your giggles, but I have to ask: if you can bet on things going up and things going down, why don't people just place an order for both and then whichever one happens first, cancel the order for the second one?
Really dumb question about shares
- Thread starter luce.rocks
- Start date
Because orders are executed immediately or within hours - so you don't get to cancel an order.
sometimes they're executed in split second. Once its done you're stuck, its all yours baby.
OK, that makes sense. Cheers 
Luce, you can place orders for Buy and Sell at the same time.
Called "contingent" orders.
eg:
If ASX trades at $x buy. So if you think it's going up place this order.
Stop loss order. This can be used to protect your position if the stock trades at a price you want to protect your capital if it goes backwards. The price can be set for profit taking as well.
There are many varied and complicated orders you can place on the ASX. It would be wise to check them out with your broker.
Called "contingent" orders.
eg:
If ASX trades at $x buy. So if you think it's going up place this order.
Stop loss order. This can be used to protect your position if the stock trades at a price you want to protect your capital if it goes backwards. The price can be set for profit taking as well.
There are many varied and complicated orders you can place on the ASX. It would be wise to check them out with your broker.
you can do it with algorithm and automate trading logic through a combination of software and supported brokers.
The traders at big banks do this all the time, they make hundred or thousand of trades automated with little intervention, pocketing $50, $100, $1000 a tick.
Small amount but multiple by 1000s it becomes a very large number.
If you know a certain business or stock well you can do this and make reasonable income stream fairly easily but you got to know your stuff or
you get eaten and lose your capital.
There are people they make their living by just trading Microsoft stock all their life, yup one stock Microsoft.
this is the sort of stuff no one teach you, once you acquire enough knowledge and experience you know what to do and just quietly rake in the cash with little stress...
with stock market if someone got something that rake in the cash, they never tell you..the one that sell course and seminars are just that selling course and seminar they don't know how to rake in the cash.
I sort of do this and I just pocket $1000 here $2000 there $500 over there
through out the year..some weeks I pocket $2000, other week $500..this is just trading activities within a certain business I know very well, then you get the dividend stream on top and capital gain for longer term holding etc...
The traders at big banks do this all the time, they make hundred or thousand of trades automated with little intervention, pocketing $50, $100, $1000 a tick.
Small amount but multiple by 1000s it becomes a very large number.
If you know a certain business or stock well you can do this and make reasonable income stream fairly easily but you got to know your stuff or
you get eaten and lose your capital.
There are people they make their living by just trading Microsoft stock all their life, yup one stock Microsoft.
this is the sort of stuff no one teach you, once you acquire enough knowledge and experience you know what to do and just quietly rake in the cash with little stress...
with stock market if someone got something that rake in the cash, they never tell you..the one that sell course and seminars are just that selling course and seminar they don't know how to rake in the cash.
I sort of do this and I just pocket $1000 here $2000 there $500 over there
through out the year..some weeks I pocket $2000, other week $500..this is just trading activities within a certain business I know very well, then you get the dividend stream on top and capital gain for longer term holding etc...
People will often place orders for upside and downside benifit. This is usually to mitigate against risk.
There are plenty of people who do. One of the bigger issues with pocketing small sums in the entry and exit costs.
You can also use leverage with options and forex. By doing so you can enter with lower starting capital. However, as you multiply your returns you are also multiplying your risk. If you dont know what you are doing, you can be risking more than just the capital you put in (ie you can invest $1,000 and end up owing $10,000)
A great way make money - also a very quick way to lose it all (and then some) if you get it wrong.
Blacky
Cmon Dazz, you never talk about the ones which lose.
I used to work with a guy who was very much into the horses. He would come in on Monday and regail all of his wins. In speaking with him, even he was convinced he was up at the end of every week.
In order to prove it to us 'doubters' he tracked every bet for 12 months. At the end of the year he estimated his profit at $40-50k for the year. We did the sums, and turned out he was half right. He was up at the end of the year. Up a whole $4.00.
He was shocked - he was certain it was a good year, and he had done well. It was just that he never focused on loses, only the wins.
He gave up betting as a result...
Blacky
People do Luce - it's quite common, though more so with institutions.
You don't need the "large-ish" amount either. We tend to construct these things deals more commonly using ETO's ("Exchange Traded Options").
Options are basically levelage instruments that let you get huge LVR on shares.
We can construct things called "options spreads" if you are interested in looking them up on the net.
The Y-man
The Y-man
I do exactly this, trading in blocks of 100k-200k and selling on small price movements. As long as it moves positively more than the commission charged by your broker, you will make some quick cash.
As I am risk averse, I trade with accumulated cash rather than with margin loans or options.
The only problem is that if the share price movement goes the wrong way you suddenly have a huge chunk of capital sitting stuck on the side lines for a long time. I still have stuff that I bought prior to GFC in 2007 that I thought I would squeeze a few k out of in a day or two but are still hanging onto, gradually selling them off as I make cap gains from other trades.
With no leverage, they must be incredibly small returns when shown as a percentage. Therefore risking a lot of capital for low return and being risk averse seems at odds.
That is true but leverage also magnifies your losses as well. Whilst the paper losses of capital are distressing, the situation would be far worse if they had been leveraged purchases.
And generally, my trades are usually never more than 10% of my overall capital position.
I mainly tend to trade in ASX top 50 shares and hence if I encounter a paper loss, I tend to sit it out and collect dividends. And then I will offset these with real capital gains from other trades to minimise tax.
I used these initially when I started trading fifteen years ago but have not found that they suit my trading style.
I do not feel confident about pricing the stop losses after my initial purchase. I dont read the market well enough to set the stop loss at say 10% or 5% or 2% for a particular stock. As the purchases are mostly ASX 50 shares, I tend to be more comfortable accumulating them even if they are sitting at a loss.
I find that a trailing stop loss to protect gains from a rising stock is useful. This I usually set at an arbitrary 3-5%.
And at the end of the day, you are in no worse a position than many people with their super funds - but you have more visibility and control.
The Y-man
I've lost thousands on the sp500/russell2000 split.
But I've made tens of thousands.
Losses come and go but good strategies stay forever.
But I've made tens of thousands.
Losses come and go but good strategies stay forever.
