who plays with the stock market here

who plays with the stock market here - Printable Version

+- Welcome to The Australian Hayabusa Club Forum - ARCHIVE ONLY VERSION - NEW REGISTRATIONS & POSTS DISABLED (https://www.australian-hayabusa-club.com/MyBB)
+-- Forum: Non Bike Discussions (https://www.australian-hayabusa-club.com/MyBB/forumdisplay.php?fid=43)
+--- Forum: Not Bike Related (https://www.australian-hayabusa-club.com/MyBB/forumdisplay.php?fid=9)
+--- Thread: who plays with the stock market here (/showthread.php?tid=14818)

who plays with the stock market here - mia06 - 06-04-2010

does anyone here play around with the stock market or in particular the options market

I am into charting and have been doing paper trades for a couple of years now and have just stepped up to real trading

anyone interested in posting their trades/projections

I use software called bourse data

here is my first live trade

may call
strike 1.70
buy in at .15 for 15 contracts
exit point will be .21 all going well

[Image: trade1.jpg]

brought at entry point of $1.72

RE: who plays with the stock market here - 09Fatboy - 06-04-2010

Quote:does anyone here play around with the stock market or in particular the options market

I had my super in the stock market , it was doing well for a while 25% p.a ect then it went to shit real quick and i lost a heap , 2 years later i'm just starting to claw back the losses, can be fruit full if your know what your doing , good luck with it. The asx web site has some good info too.

RE: who plays with the stock market here - [UNIT] - 06-04-2010

I have no idea what your talking about! Wish I did..

RE: who plays with the stock market here - mia06 - 06-04-2010

hope this helps unit

I am only a painter so forgive me if i make this sound more complicated then it really is

I like the options market as it gives you a lot more bang for your buck

and you can make money in a falling market

eg

if i had brought the stock for 2000 shares xyz a 1.72 and it went up 8 cents

i would of equated to the following me 3440 + broker fee

i sold xyz for 1.80 per share =3600

profit 160 less broker fees in and out.. profit about 60.00

options definition
The right, but not the obligation, to buy (for a call option) or sell (for a put option) a specific amount of a given stock

so i buy an option for the same stock with a delta of .5
Definition. Options Delta measures the sensitivity of an option's price to a change in the price of the underlying stock

this costs me

$2000/0.15 per call option =13333 options in that stock. now to make things a little easier we round off in thousands and call each 1000 a contract

so for 2000 i get 13 contracts

now with a .5 delta for every 2 cents it goes up the option should go up 1 theoretically

so stock goes up 8 cents my option position goes up 4 cents

result
13000x0.4= $520 less broker fees

so as you can see a lot more bang for your buck

mind you there is pit falls

this is a very basic concept of the option market

there is some really good books in laymans terms about

Charting

picture worth a thousand words

[Image: teachaid.jpg]

check the two lines out in the middle of graph

exponential moving average red
moving average blue

note what happens every time these two lines cross each other

RE: who plays with the stock market here - Missy_Moo - 06-04-2010

argh the candlestick charts... they drive me insane.

I have stock, but I will admit I do not play the market. My bf enjoys it and has been doing it for quite a few years.

I mainly buy bluechip and pretty safe stocks. I don't chance out on the more unstable stocks.