who plays with the stock market here

[mia06]

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






brought at entry point of $1.72

[09Fatboy]

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.

[[UNIT]]

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

[mia06]

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



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

[Missy_Moo]

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.