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Papertrading
prawn_86
post Posted: May 21 2007, 01:11 PM
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hi all,
this is the closest thing i can find to a new members post, so here goes...
i have recently discovered share forums, so i am just trying to learn as much as possible from everyones experiences. I began investing about 9 months ago and am currently only at a 3% gain due to a few mistakes, from which i have finally managed to claw my way back ito positive territory.
I am a full-time student so you can appreciate that i dont have heaps of capital to work with so i tend to invest more towards the top 200 or solid opportunites, so i havnt picked a bagger as yet.
My current portfolio is ANZ, DYL, PDN and BOL, but i have also previously traded in OXR, SRX, SBM, ZFX, ARG and KZL.
I hope i can contribute and maybe pass on some of my limited experience.



--------------------
www.aussietravellersforum.com.au
 
Bar
post Posted: May 17 2007, 09:30 AM
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In reply to: Zaitech on Wednesday 16/05/07 09:02pm

Thats why I have put money into shares already, I dont really like the idea of play money. Its like play money inn poker, lasted about a day until I started playing for real cash.

 
gwydir
post Posted: May 16 2007, 09:12 PM
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In reply to: Zaitech on Wednesday 16/05/07 09:02pm

Thats what I have a problem with as a newbie...very frustrating
Expecting things to move straight away.......sell out, off they go.

>no emotion

 
Zaitech
post Posted: May 16 2007, 09:02 PM
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Oh yes I forgot to mention...paper trading is cute BUT until real money , your money is on the line that is when you will find out if you have the stuff


Hitting a punching bag can have it benefits but what really counts is when you enter the ring and can get hit back..

Without anything to lose means no risk , no emotion and no pressure...and it is how you handle them that counts.. cool.gif

At a Bar around 2 months ago a friend told me all excited that he had made 9500 odd in 2 days paper trading...I was not suitably impressed so he asked if I had heard what he said.."Yes I heard" was my response...again he looked at me expecting me to show more reaction so I turned to him and said.."OK your shout"

Happy Trading
Z



 
Zaitech
post Posted: May 16 2007, 08:48 PM
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QUOTE (Bar @ Tuesday 15/05/07 01:54pm)

Bar - as you and many others use Commsec you should also be aware of the importance of T1 !!!!!

At commsec if you buy and sell on the same day or the next then it is a contra [offset] trade ie the difference between purhase and sale price [incl brokerage] is the amount that is either owed to or by you... depending on if you made a profit or loss cool.gif

So for those who only want to pay or receive the "difference" and not pay the purchase price on T3...well then it is T or T1 that is significant ...

Also if you do a stack of trades it can be awhile before money goes in or out..


Other Brokers have varying terms...

Happy Trading
Z

ps needless to say confirm what I said with Commsec...

pps regardless of if you do T1 you should always have sufficient funds..

 
Bar
post Posted: May 16 2007, 02:13 PM
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Just figured out how to make stops on Commsec. Ta tongue.gif

 

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Bar
post Posted: May 16 2007, 09:09 AM
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In reply to: spartz on Wednesday 16/05/07 05:17am

That makes much more sense thank you. Just waiting for payday so I can buy a few books cool.gif

 
spartz
post Posted: May 16 2007, 05:17 AM
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In reply to: Bar on Tuesday 15/05/07 11:39pm


That's where your trader education comes in. Elder and/or Van Tharpe explain it in their books and any decent educator will also run you through this. Fixed fractional position sizing is a very important risk management/money management strategy.

Basically, you need to decide how much you are willing to risk per trade. A standard risk is 2% of your portfolio, some choose even less especially when trading speculative stocks. If you have $10,000 as your start up and go the standard 2%, then your maximum risk is $200.

Then you need to look at where your stop loss should be. How many cents is it away from your maximum buy price? This number is how much money you will lose per share if you sell at your stop loss. For example, XYZ is trading at 88c and showing good support at 80c. Your stop loss is at 78c, just below support and you are risking 10c per share.

Next, get your maximum risk in dollars and divide it by the money you stand to lose if the trade goes against you. The answer is the number of shares you should buy. The bigger the stop loss value the fewer shares you buy and vice versa.

Our example: 200/0.10 = 2000 shares. Total cost: 2000 shares x 88c = $1760 + brokerage.

Another important risk management factor is making sure that no one trade requires too much of your capital, e.g., total trade value must not exceed 30% of portfolio, or 15% if a spec. You get the picture.

Nizar, that's a good point about pyramiding into the winners on pullbacks. I learnt that quite late.

Spartz.

 
Bar
post Posted: May 15 2007, 10:41 PM
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In reply to: crooky on Tuesday 15/05/07 10:39pm

Yes its great, dont see many forums willing to help as much as this one. cool.gif

 
Bar
post Posted: May 15 2007, 10:39 PM
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In reply to: nizar on Tuesday 15/05/07 10:21pm

I have no idea what you just said blink.gif

laughingsmiley.gif

 
 


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