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Pre-opening & opening prices
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tanglinboy
Elite |
21-Oct-2011 07:19
Yells: "hello!" |
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That's true... especially in these times!
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Hulumas
Supreme |
20-Oct-2011 23:14
Yells: "INVEST but not TRADE please!" |
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Since SUN rises from east!
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iPunter
Supreme |
19-Oct-2011 11:03
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Stocks is a game where the more confident one becomes, the more one will " mau" big. In other words, the size of the " mau" is a function of the confidence... 
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iPunter
Supreme |
19-Oct-2011 10:59
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Since when is stock-betting not like gambling?.... lol...
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tanglinboy
Elite |
19-Oct-2011 10:19
Yells: "hello!" |
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To play with opening and closing prices is very dangerous.. in my opinion. Almost like gambling.. | |||||
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maverick317
Member |
19-Oct-2011 09:36
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Thats all i need to know for now, at the moment. Thanks alot for the info and the advice, will just have to learn more by trying :)
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belgeran
Veteran |
19-Oct-2011 00:50
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ah.. in poems the contra will be done for you automatically... they removed the contra button sometime back because people usually forget to check it it says T+3 but its actually T+5... T+4 being the day u need to deposit $$ for the shares, T+5 being the day you must sell out. if you transfer $$ for the shares on T+5, its too late. This is however up to individual broker's client management style.. eh... i would say messing up is part and parcel of the learning process... just try not to mess up big time... play with money you're willing to lose and consider it lost the moment you transfer into the trading account.. thats all i can say..heh.. |
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maverick317
Member |
19-Oct-2011 00:04
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Noted bel. In the meantime, i'll stick with long till i'm more experienced. Lastly, i would like to clarify something regarding contra sales, if you don't mind. I understand that contra sales means that i can buy a share and not have to pay for it if i manage to sell them within T+3 days. Whatever profit/loss i make will be credited to my a/c. Does the poems system automatically detect when sales are within the contra period? According to their website: " Yes, you may trade Contra by indicating the Contra function on the SELL order placement screen." However, i don't see a anything that allows me to choose the contra function when selling on the Trade screen. Or am i at the wrong section? Really appreciate the advice you guys, esp bel, have given. Am new to this, so i dont wanna mess it up :)
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belgeran
Veteran |
18-Oct-2011 23:05
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like what warren says.. don't anyhow do naked short sell.. unless you're really really good like he is.. i'll still explain though.. you can short sell in a cash a/c, which is termed as naked short selling.... if you borrow shares from broker, then you won't consider it naked short sell since you've already borrowed shares to do so.... you can only borrow using SBL (Shares Borrowing Lending) a/c to sell in normal cash a/c there are 2 different type of CFDs.... the first being the normal CFD, which means u trade with a market maker instead of the actual market. so when you do buy and sell, your trades does not effect in actual market, but its more like a bet with the market maker to see who's right or wrong... this has no shares and thus do not need to cover with the same day as well. the second being CFD DMA - direct market access, it is slightly different, you borrow shares from the brokerage instead and they sell what they have on hand, so its not considered naked. The brokerage however charges you fees for lending you the shares and the margin provided. since it is not naked, you do not need to cover within the same day, however you incur charges on a daily basis. to add on.. intraday trading is not an easy thing.. don't expect to earn the very day u put up a trade.. it is more likely to end in losses than earnings if you're not extremely good at spotting tops, bottoms, market sentiments etc. you need to remember that you still need to cover your transaction costs to consider it earnings... which is why naked short sell is considered a very very risky practise. |
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warrenbegger
Elite |
18-Oct-2011 22:45
Yells: "Anyhow Buy Anyhow Die ^_^" |
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Don't anyhow naked short sell ! Only skillfull naked stripper like me know how to run naked safe. I naked short because i know what i am doing and i got backup safety net. Plz don't anyhow naked short, or CFD short if U don't know what U r playing. |
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maverick317
Member |
18-Oct-2011 20:03
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Link appears to be broken for me, but i think you're referring to the post in this thread http://www.sharejunction.com/sharejunction/listMessage.htm?topicId=10056& msgbdName=Trading%20Techniques& topicTitle=Short%20selling I did manage to read it earlier. So i am unable to do short selling if i'm using a SGX Direct Securities account? I know that i can apply for a CFD account if i want to, but what is SBL, sorry. Naked short selling means that i short without borrowing the sold shares from my broker, and i guess that i can only arrange for borrows using a CFD account, correct? What happens if i short on my CFD account? That is naked short selling? Sorry for the numerous questions, gets a little confusing Cheers :) |
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belgeran
Veteran |
18-Oct-2011 19:24
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http://www.sharejunction.com/sharejunction/listMessage.htm?topicId=10056 You can see more information from there, there's a detailed posting by Edward on short selling in SGX.. If you have any questions after reading, you can always ask here again =) however, it is not encouraged to do naked short selling... please open a CFD or do a SBL if you wish to short sell.. |
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maverick317
Member |
18-Oct-2011 17:12
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Juzztrade, thanks for the info. And bel, appreciate the explanation, i understand it better now. Another question, this time regarding shorting. I read up and understand the concept but i don't understand the penalty part. According to the rules: " As of 25 September 2008 onwards, there will be a penalty for performing short-selling trade. In addition to the processing fee for buying-in at $30 per contract, there will also be a penalty of 5% of the value of the failed trade subject to a minimum of $1,000." Am i right to say that the penalty is received when, after selling, i fail to buy back shares to return to my broker within the settlement period? So a failed trade, in this case, is when i do not return what is owed (the same number of shares) to my broker? |
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Juzztrade
Veteran |
18-Oct-2011 08:39
Yells: "Techincal and long term investor" |
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Hahaha, I always L@@K and look carefully before submitting my order before the market open. Equilibrium price is the price at which orders would be executed if pre-opening/pre-closing matching were to occur at that point and acts as an indication of the eventual opening or closing price. SGX publishes this data on a real-time basis to provide more market transparency and helps market participants assess the market and adjust their orders accordingly. Masking of all better bid/ask prices and quantities acts as an additional safeguard against manipulation of the eventual equilibrium price. |
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belgeran
Veteran |
18-Oct-2011 08:25
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ahh.. if in the case that you absolutely wanted to buy up the shares, of course matching is good since it ensures that you'll get it if you queue high enough.. but like i said, prices that open high may not always go higher.... so why would you want to pay 2.7 when you may be able to pay just 2.65?.. but of course.. different investment/trading plan has their own perspective.. so its up to the individual investor/trader which game plan they are working on... =) |
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maverick317
Member |
18-Oct-2011 07:36
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however, as a buyer, you won't want to buy too high..?.. the basis of a trade is to buy low sell high... if u buy higher.. it just makes your profit margin go less or even worse, stand at a losing position.... Oh, but earlier you said: however if u set at 2.54, your trade will not be done, because its below the opening price... however, say you set to buy at 2.8, it will be done at 2.7... Meaning that if you bid high, the trade will be done at the opening price anyway, so it doesnt matter how high a bid you placed as its to enter a higher level in the Queue. Or am i confusing the issue? I find that almost all the investment websites are very brief on pre-opening issues. Thanks again for the reply. |
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belgeran
Veteran |
17-Oct-2011 22:57
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yes, thats because there are sufficient buyers willing to buy higher against insufficient sellers willing to sell lower.... however, as a buyer, you won't want to buy too high..?.. the basis of a trade is to buy low sell high... if u buy higher.. it just makes your profit margin go less or even worse, stand at a losing position.... also, prices that go high on matching because the night before may be a good US closing, causing the buying frenzy to gap up the price on opening, does not necessarily mean that the price will stay up throughout the day.... |
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maverick317
Member |
17-Oct-2011 19:45
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Thanks again for your reply. Based on what you say, i understand that its because of people placing high bids that the spread during pre-opening is very wide. Why doesn't everyone just put extremely high prices for their pre-opening bids since it increases their chance of buying the stock at opening price?
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belgeran
Veteran |
17-Oct-2011 11:15
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it works the same way.. however if u set at 2.54, your trade will not be done, because its below the opening price... however, say you set to buy at 2.8, it will be done at 2.7... the only advantages of buying at pre-opening / post-closing is that u can stack in front of other's queue... say u think the market is going to climb.. but the opening is at 2.7 already..... if you set a buy price at 2.8, you will definately get the trade done.... if u set at 2.7, you may not get done depending on how deep it eats into the 2.7 queue... unless you've done it really early..
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Juzztrade
Veteran |
17-Oct-2011 11:06
Yells: "Techincal and long term investor" |
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Nothing is difficult in stock market Always remember to plan your trade and trade your plan And the money will start coming in |
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