That VAL touched 1.24 at one stage today. Going up a shocking 110%
Settled back down now. Still a rise of around 37% though.
Got the books through today though. An after a 1 hour explanation from me old man last night explaining why Companies provide 'Issue of Equity' I am ready for the read. _________________ Liverpool 1 vs 3 Aston Villa - The moment we got Thumped by the worst Aston Villa Team in Living Memory is the Moment I waved goodbye to ALL European Football For 2013/2014.
the 110%,i found could be a norm.on penny shares,you had to be able to trade as soon as the new price covered original cost.plus the dealing cost.then hit quick,and sometimes go in a short while later and re buy.the speed reaction is really needed though.
I feel a bit sick. VAL at one point were up 250% today!!
Oh well, lets hope this is a good sign for the future. Pick out a few more like this one and I will be more than satisfied. _________________ Liverpool 1 vs 3 Aston Villa - The moment we got Thumped by the worst Aston Villa Team in Living Memory is the Moment I waved goodbye to ALL European Football For 2013/2014.
Been speaking to a few people and found out a few interesting things. I couldn't help but notice that most shares that finish in the Top 10 risers, which are priced at less than 3p, tend to end up in the Bottom 10 losers on the following day. Quoting one of my colleagues as good as I can, he said:
"A lot of traders investing in these companies are like Betfair Traders. No interest in making long term profit within companies. They will buy cheap and sell as soon as the Share has a decent day. With the share making 50% or more. This results in them selling up along with long term traders who have cottoned on to this always happening".
I don't fully agree with this, but nevertheless I found this interesting and started thinking what would I do in this situation. So I can up with a formulated strategy. My goal when selecting shares is going to involve a lot of research. I want to identify decent companies making wise decisions and provide a decent viewing of progressing in recent years. Anyway, I mentioned VAL on the previous page when they were 0.54p, so I want to note down what I think my strategy would be.
Possible Strategy:
Lets say I brought 500,000 Shares at .54p This would cost £2700.00.
The share price rose to 2p the very following day (True story lol). Now I don't want to lose this share but I know I can't leave my 500,000 Shares sitting there as people will be trading out left, right and centre. On the day itself the impact won't be too bad as a lot traders will also be trying to buy into the Share meaning the Market Makers won't be dropping the price as long as everything levels out. But I am aware of what tomorrow could bring. Either another big rise based on the positive news released by the Company or a massive fall in the Price with Traders cashing in on their profit from yesterday.
So theoretically I have 500,000 Shares. I plan to Sell 250,000 Shares at just under 2p. Lets say 1.95p is the selling Price. This would give me a return of £4875.00. A profit of £2175.00. And this doesn't include the 250,000 Shares I still hold in the Company. The following 2 days sees the Share fall to 0.73 (As has happened) lets say. I am still confident this company will progress going forward and now I have the option to Buy in at 0.77p lets say the buying price is. 250,000 Shares at 0.77p would cost me £1925.00. So now I would have my 500,000 Share stake back in the company and also have made a current profit of £250.00 to invest elsewhere. Whilst I now still on my original share stake of 500,000 awaiting the next news release. Which in the case of VAL, I am expecting.
Obviously I could sell out completely at 2p. But then the kicking yourself comes in if the Share takes off after the first day boom from 0.54p - 2.00p.
Anyone think any of this makes sense and whether its not a bad strategy to start off with. Only on page 43 of my first book. 500 pages long. Adopted a note taking strategy with this just so I don't have to keep referring back to a 500 Page book in the future. Noting down Key information etc. _________________ Liverpool 1 vs 3 Aston Villa - The moment we got Thumped by the worst Aston Villa Team in Living Memory is the Moment I waved goodbye to ALL European Football For 2013/2014.
Last edited by Liverpool1985 on Wed Feb 16, 2011 11:57 pm; edited 1 time in total
on paper it sounds ok.but when i was paper trialling the one i put forward.the deal to sell whatever you sell was time critical,a lot shorter than on the day.your theory is sound,but depending on what made you buy them shares when you did,maybe you dont need to buy back. .it was the speed needed that put me off at the time.as i was in full-time work of 12hrs plus.dont forget to factor dealing costs in,because they are critical to profit figures.will look to see if i have the lists of dealers that worked/work now to see if it may help,if it does i will contact you,but am guessing your dad already has this.
dont forget to factor dealing costs in,because they are critical to profit figures
Hi Machine,
Agreed. Obviously Selling Shares means you will be taking a lower price than the current share value. But I included the Sell Price in my above example. And Stockbroker fees aren't what they once were. Can be relatively cheap now to make transactions. Just need to shop around for Brokers. With so many Stockbrokers competing with one another it only means positive things for investers. Or just go for the execution only approach.
Just starting a Chapter in one of the books called 'Buying and Selling Shares' so hopefully this will relate to the above.
Yea I am also in full time employment. But as an Insurance Manager I have access to computers. Not for every minute of every day mind you. Every couple of hours maybe. _________________ Liverpool 1 vs 3 Aston Villa - The moment we got Thumped by the worst Aston Villa Team in Living Memory is the Moment I waved goodbye to ALL European Football For 2013/2014.
Shouldn't really help you after the FA Youth Cup on Monday but i'm not a bitter man......
Was very interested in buying & selling shares at uni and hopefully will be able to pass on some advise here.
Don't forget the price that is always quoted is the mid-price. There is always the buy-sell spread. Thus the price quoted in your example above (54p) may have a 2p spread so you would have to buy at 56p, so when it then rises to a mid price of 56p as you suggest you would then sell at 54p, so would actually lose 2p per share.
The more liquid a stock the smaller this will be, i.e on BT it may just be half a penny, on small company it could be bigger.
Everyone says penny shares are the way to go as you can make huge gains, well remember the old adage shares may go down as well as up. e.g. a share at 10p goes up to 12p, well you've made 20% nice, but it could just as easily go down to 8p, and you lose 20%.
The trick around this is to spread the risk, so have some tucked away in the solid/steady companies, and some in the higher risk stuff.
Like any bet, research is key. You wouldn't back Liverpool to win next time out without know the oppo, injuries to players etc, so do the same here. The FT offer, well I assume they still do, a service where you can get free copies of the Annual Accounts for some accounts. I think it was those with a club sign next to them.
Picked a restaurant or shop as a potential pick, visit it, get a feel, is it busy? efficiently run? Or vice versa you go somewhere and it's busy then think is this something I can invest in. That's a tip I picked up from someone who won the Times fantasy investment comp back in the 90's. When I say won, he had about 10 funds in the top 20 for both the years I did it.
A lot of the principles of sports betting will be similar so you can use those lessons.
Hope I haven't waffled on too much and feel free to ask if you need some more advice. Although haven't really done anything for about 10 years, but hopefully I can help. Also an accountant so maybe able to help with some of the financial questions.
Thanks for the post. I have just got in tonight and I am out tomorrow. But on Sunday I will respond to your post as I don't want to rush my response.
That could be very handy that you are an accountant. One area inparticular that you could be a massive aid to me if you are happy to help. We could do a trade. As I have been following your 'Retirement Plan' Blog and have some useful advice that I think may be of some use mate.
Cheers
Speak Soon.
LP _________________ Liverpool 1 vs 3 Aston Villa - The moment we got Thumped by the worst Aston Villa Team in Living Memory is the Moment I waved goodbye to ALL European Football For 2013/2014.
In response to your post I agree that the more liquid in a market the smaller the spread will be. I don't think I explained my example too well. As the prices I quoted was higher than the current Mid price of the Share.
Smaller shares are definitely more risky. But I think this is the area of the Stock Market I will be most suited at this current time. My goal is going to be to highlight young promising companies which are small shares. Their directors and long term goals will also have a massive factor as well. There seems to be a lot of guessing and speculation surrounding young; small shares and I find it rather intriging. The good news on my part is that I will have no problem in providing enough time and dedication in to the research of companies I am following. (I mean I am the sad tipster who use to spend over 24 hours per week reseaching and writing up his Saturday football selections lol).
I mean realistically I won't be making any investments in the next 6-8 months. Personally I would like to cut this down to 3-4 months. But with so much still to learn and a lot of information to digest I think it is very realistic to assume I won't be investing until the close of 2011. One part on my list of tasks to complete involves reading the 'Final/Half Yearly Results' of Companies I am interesting in investing in. Now, like many others, I feel I understand these results. But this approach is extremely nieve and as an accountant I am wondering (if you wouldn't mind) providing me with a much clearer explanation of a companies accounts. What is important, what means what etc. It would be a massive help. Also comparing a Companies last 3 years results. What stands out to you. What an investor should be looking for.
I mean I still have 1 and a half books to read. PS this Financial Times Book is excellent so far. Really eases you into everything. And not become immediately frustrated by how 'confusing' it all may appear. And after these books I have highlighted other important areas I want to find out further information on. But in there somewhere is the Company Results. Which I am hoping you will be able to provide a helpful insight to mate.
PS - Sorry about the 9-0. At leats is wasn't double digits LOL.
Cheers
LP _________________ Liverpool 1 vs 3 Aston Villa - The moment we got Thumped by the worst Aston Villa Team in Living Memory is the Moment I waved goodbye to ALL European Football For 2013/2014.
Your choice of rare earth elements could be smarter than you think.
The chinese have 85% of these elements and they are keeping a very firm grip on them. Why are they so important? Laptops, mobile phones and catalytic converters all need them for example. It is no coincidence that China has just overtaken Japan as the second biggest economy in the world.
Good luck with your speculating!
Yea I am very interested in Rare Element Stocks. Regarding China, funnily enough I was looking into this the other day. And while I was researching this I then became interested in Lithium Mines (On a different subject). It has been rumoured Lithium Batteries could be used on Electric Cars in the future. Although it looks like some doubt has been placed on this idea since then. I mean Lithium's two biggest uses are probably in Glass and Batteries. The price of Lithium has shot up in recent years. But with this becoming one of the most used Metals (and the fact the USA won't state how much Lithium Production they own) I can't see if becoming any cheaper in the near future.
But hey ho. One Share leads to another. And one story leads to another. So much to read lol. Just read about Pooled Investments and really didn't like the sound of those. So thats one I can happy cross off my list.
Cheers
LP _________________ Liverpool 1 vs 3 Aston Villa - The moment we got Thumped by the worst Aston Villa Team in Living Memory is the Moment I waved goodbye to ALL European Football For 2013/2014.
I am kind of getting the feeling a fair few investers are like 'Sheep' when it comes to the buying and selling of shares. Find it strange the way Shares are Brought/Purchased on Smaller Shares especially. Did find this a tad amusing earlier. This was a response to an Investor moaning that Sareums (SAR) price had fallen to and settled at around 1.50p.
Quote:
My god same old panic for the ones who got in. Listen for 2 minutes. Go and look at BEM or GKP yes yes yes they are mining but when good news comes it comes and pushes on. If you got into penny shares hoping for a nice continual rise day after day then get out of shares altogether as for someone who watches this board more than posts I can’t be bothered with your drivel. "BEM up 1700% in a year. GKP massive as well. Thankfully I sold at 14p lol Eejit". No wise up and shut up and come back in a year. If you invested too much then you’re thick. If you wanted a fast pound then Paddy Power is your man. ENDS!
I am starting to notice how impatient some investors in the Financial Markets are. A share I mentioned back in my 1st post called Rare Earth Minerals (REM) has slowly declined from 0.098p down to 0.083p. There has been no news whatsoever. The Market Sector REM is situated in is not performing poorly but around 200,000 shares are being sold per day. It is a consistent amount as well. This is a risky company. Announced a complete change in strategy in November 2010. But because of no update since then many people seem to be almost becoming bored and selling up. Madness. I have spoke to my Old Man and he agrees that there is no reason for investors to be selling up on this share.
Obviously, this is all coming from someone who knows about 1.75% of all the details necessary. And holds no active experience of Trading Financials lol. Only another 98.25% to go. _________________ Liverpool 1 vs 3 Aston Villa - The moment we got Thumped by the worst Aston Villa Team in Living Memory is the Moment I waved goodbye to ALL European Football For 2013/2014.
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.it was the speed needed that put me off at the time.as i was in full-time work of 12hrs plus.dont forget to factor dealing costs in,because they are critical to profit figures.will look to see if i have the lists of dealers that worked/work now to see if it may help,if it does i will contact you,but am guessing your dad already has this. 
