a 3 day trading week, and a quiet one with JONGO and FLEMSTER still on holiday... its been good for me and I suppose anyone who has been long on the Australian market....over the last two days -
HVN - long, 2 bites - sold at.............. GOOD PROFIT
AIG - long, 4 bites - holding...............EXCELLENT GAIN Insurance
WBC - long, 6 bites - holding ..............EXCELENT GAIN Westpac - now at all time high.
MQA - long, 3 bites - holding ..............MEDIUM GAIN Toll roads in europe and US (profits should be greater when the $A retraces)
SHL - long, 2 bites - holding ..............EVEN Sonic Healthcare - had hoped it would move back up with the rest of the biotech and tech stocks.
MARKET DEPTH - my current brainwave is to add the "buy/ sell ratio" to list of indicators for likely share price movement.... its been pointed out that the buy/ sell ratio in itself can not be relied upon to be an accurate indicator, and I agree.... but what I am doing is recording the ratio each day for the stocks I have an interest in and comparing the ratios with that of the previous day, or days....
I calculate the ratio by dividing the number of shares that are bidding by the number of shares offered for sale -
so that so if the number of shares bid is a quarter of those offered its ratio would be 0.25, or if the number of shares bid are four times that of those offered for sale, the ratio would be 4.0
and its not that time consuming when flicking through the market depth each morning, if you have your calculator alongside to make the calculation and record it in table format....
i'm thinking its a good ritual to get into when assessing your stock every morning..... I have recorded the ratios of my stocks for the last two mornings and am hoping I can keep it up ie. rather than the usual cursory glance.
of course if there were charts for the buy/ sell ratios that would be excellent.
