It was 10/18 - before 1:00am - when I placed an online order to buy ONT with limit $1.20 each. I got it for $1.16 - the highest ONT trading rate for the day - even at 10:30 am east - when I called my broker to ask why I got the shares at the highest rate:
1) Broker said AMEX trading hours for ONT have not really started at 9:30am.
2) The charts on broker site show the AMEX opening hours: 9:30 am/ Opening price for about 4 minutes: $1.07/share and it did not jump right away to $1.16.
3) I did not order to buy the shares before the AMEX opening hours. But my broker said it is how AMEX deals with the orders.
4) Broker also said that if I had placed an order to sell, it would
get processed immediately. Since I placed the order to buy, it didn't get thru so fast.
Is here any trading sense from his say or he forgot to add key words?
Second, if you consider yourself a "trader" a lot of weird things happen in the pushing and shoving of the open. The specialists on the floor make a huge amount of money at this time. In this case, it wouldn't surprise me if the specialist/market maker first did a bunch of buying of opening orders (ONT opened at 1.07) and then sold to the opening buy orders at 1.16 (ONT jumped to 1.16 right after the opening) thus making 0.09 per share just for being the specialist/market maker. He has no obligation to match the orders of public buyers with public sellers. It's good to be the market maker. Traders like me always wait to see how the stock opens to get confirmation before placing an order. A lot of things can happen in the news between 1AM and the market open. Traders never put in orders and let them sit that long.
http://www.marketwatch.com/Search/?property=column&value=paul+b%2e+farrell&scid=3&siteid=mktw&dist=mktwmore
The traders have all the news well before you do, so if you are trying to nickel and dime your way to riches by picking a little spurt to long here or a little sag to short there, don't–they've already done it and moved on by the time you spot it.
Also, be very, very careful of the proportional share you trade with, compared to the larger account value. I was trading potatoes once, um, a while back, and some rich guys tried to steer away from a long-established trend. I got a margin call during one of their 'force it' moves and the brokerage confiscated my whole account value and sent me a bill for the rest. Instead of paying off my mortgage, I was paying on my debt for two years. Without the extra traffic, the general trend was right and I would have profited nicely–but I didn't have enough reserve for when it suddenly went radically against me. I do have one consolation, though, something like 90 millionaires got caught in a still larger default, and several dozen went to jail.
Feel lucky that your account balance is "slowly decreasing"–things could be much worse. Check the charts for agricultural spreads and straddles, many of the patterns I used to rely on don't work any more, but see if you can find some of your own, then play it safe. If nothing else, go to currencies and short the dollar and go long on almost anything else. Good luck.
How ever, even in delivery, you can buy daily and sell daily the stocks that you hold. It depends totally on the fund manager whether to hold the stocks or sell. He does it depending on technical analysis and other news. If such an analysis fluctuate every day, the fund manager may transact the stocks every day. BUT SUCH A POSSIBILITY IS VERY SELDOM.
When you can buy/sell millions of shares you affect the market, particularly when the major market herds form into a stampede
What you're really trying to surmise is how extreme the price change in the option would be. Typically if there's a big drop in one day of that magnitude the company is either going to have a news release or impending news. I would still expect a good sized change in the option price.
People are free to bid as low as they want. And people are free to ask as high as they want. But shares are sold only when the bidding and the asking prices coincide.
When there are some bad economic news. Then both the buyers and the sellers bring down their prices. And sales happen at a lower price.
When the market is closed, traders put in buy limit, sell limit, buy stop, and sell stop orders at various prices. All of these orders become effective when the market opens. But only those buyers and sellers whose orders coincide in price will have their orders executed. And once some shares are sold at a certain price. Then this becomes the new price of the stock. And this price can be quite a bit higher or lower than the previous selling price.
It requires a lot of time in front of the computer.
Basically if you want ot day trade - in and out of a trade on the same day - well you have to be dependent on technicals as well as any news that the market is awaiting or is absorbing. and for private investors this up to date news is hard to obtain.
Technical charting day charts - make sure you have all the indicators in your system present as well as all the time scales that only cover the day: ticks. 1 minute, 2 minute, 5 minute, 1/2 hour, 1 hour.
Not all indicators work in this short term environment.
Are the London Markets as fast on Level 2 and are there any extra obstacles such as minimum Day Trading account balances or maximum round trips per day?
I use Yahoo News and charts on the American markets as a secondary back up tool but on the London markets their service is sub standard. I also use Knobias for News feeds.
What tools are needed for Day trading success on the London markets.
Iearned today of a 0.5% Duty on all share purchases In London so that is one reason it is not as good, Any others?
Any info, advice or experiences are much appreciated.
You can visit http://stocksguide.checkouttoday.info for some useful tips and info related to your query. Good luck!