Trading How do I spot good short term opportunities?

Discussion in 'Share Investing Strategies, Theories & Education' started by Frank Manno, 24th Mar, 2019.

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  1. Frank Manno

    Frank Manno Well-Known Member

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    I want to do a bit of short term trading.. i.e. holding stocks anywhere from a week to 3 months and then to sell for a profit when share prices goes up.

    By keeping my ear to the ground I've invested in WPL and ORE, also QUB but I think I wasted my time with that one, I feel it's more of a long term hold.

    Also for my short term strategy, I'm better off with cheap stocks where I can buy more shares right? Rather than expensive stocks in which I can't afford as many shares. If I buy 500 shares for $3 and the price goes up $1, I stand to make $300. But if I buy 20 shares of a stock at $75 and the price goes up $1 I stand to make only $75.. This makes sense right?

    I read financial review, morningstar news, read this forum, check out commsec news.. But what's a good way to find short term opportunities for a novice like myself?


    -Frank
     
  2. Redwing

    Redwing Well-Known Member

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    Why?

    A bad purchase automatically becomes a long term hold until you are proven right for selecting it?

    Did you have an exit plan going in...You could sell and make a profit elsewhere :D

    upload_2019-3-24_19-50-3.png

    Don't ask me though, I'm crap at this game ;)

    [​IMG]
     
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  3. willair

    willair Well-Known Member Premium Member

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    Quote..
    If I buy 500 shares for $3 and the price goes up $1, I stand to make $300. But if I buy 20 shares of a stock at $75 and the price goes up $1 I stand to make only $75.. This makes sense right?

    Once you take the entry-exit -ATO costs out those numbers drop very quickly,unless you add some ""000"" and bet on market cycles..

    You can read all the above,but it comes back to your management of information even within in this site ,and the vast difference of principles -opinions-and facts ,that's why investors who end up on skip row based their investment decisions on other people opinions,and missed the principles ..Don't make that mistake..
    imho..

    [​IMG]
     
  4. Fargo

    Fargo Well-Known Member

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    Buy those on a cash burn about to hit inflection point, or those about to get into the top 300, where large fund managers have a mandate to buy. You shouldn't buy anything unless it has sound fundamentals you are prepared to hold long term .
     
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  5. Big Al

    Big Al Well-Known Member

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    Novice and short term trading don’t work together. Based on some of the questions you are asking I would say short term trading is not for you. ( no disrespect intended. I wouldn’t know any better myself. )

    Unless you are doing it with some play money and more for fun / learning rather than generating profit, I would steer clear of that one.
    I would imagine for one to even try and short term trade and win big they would need a high level of understanding / expertise.

    I could be wrong and maybe there are novices out there who short term trade and make money.
     
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  6. The Y-man

    The Y-man Moderator Staff Member

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    There are.... and it's the most dangerous combination.
    Novice - makes money early, thinks himself guru, pounds more money in, bad things happen = big loss.....

    I know it happens - been there done that! :D

    The Y-man
     
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  7. Big Al

    Big Al Well-Known Member

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    So is the theory then give it a go and if you start with a few wins, hit collect and leave? Same policy as when at the casino. After a good win, cash out your chips and get out of there. :p
     
  8. The Y-man

    The Y-man Moderator Staff Member

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    Yep!


    The Y-man
     
  9. Chicken or Beef?

    Chicken or Beef? Well-Known Member

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    Plot twist - the share price goes down.
     
  10. The Falcon

    The Falcon Well-Known Member

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    Years from now, you will look back and shake your head. Bloody hell, what was I thinking......
     
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  11. Hodor

    Hodor Well-Known Member

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    You and everyone else.

    Step 1: Trade

    Step 2: ?????

    Step 3: $$$$$

    Does that look like a plan?

    No.

    Your math is correct, the underlying logic I believe you are trying to show isn't.
     
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  12. symposia

    symposia Member

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    If you stand to make only $300 when your 500 shares go up $1 then I'll gladly handle the remainder for you! ;)

    If you do not have a framework, then you won't be able to make sense of your trading successes and failures in any useful way. Have you considered studying those used by successful investors and applying them yourself? Value investing made sense to me, but I haven't put in the time/effort to be comfortable spending anything but play money.
     
  13. SatayKing

    SatayKing Well-Known Member

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    Just saying.
     
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  14. Frank Manno

    Frank Manno Well-Known Member

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    Hehe, sounds like I'm changing my mind.

    No, the funds from the first post you quoted are taken care of now and on track. I am slowly investing that as per the original plan but I am doing it with the help of an advisor.

    As for the shot term trading. This is just something I want to do and learn out of general interest with only a small amount of money. This short term idea is not meant to fund my retirement.



    -Frank