PRIOR TO OPEN I was keen to get some action in shorting iron ore stocks this morning.... I placed short bids on three stocks just at the minimum distance above the pre open price.
JUST AFTER OPEN noticing that none of my bids had been taken up I placed new orders for the same stocks clicking "deal" and "sell"
trouble was that thousands of mug punters around aus. like myself did exactly the same thing at the same time, because there had been a very sharp fall in the gold price late Friday afternoon in china..... the result being that I had sold these stocks at a very much lower level than intended..... some of the smart day traders of course bought these stocks at very low prices and made good profits as these stocks rose steadily through the day stopping all of my stocks out and rising even further taking out my three original bids.
since there appears to be no market depth displayed or indicative open price displayed (or is there ?) how to avoid the same thing happening again ??
my thoughts are -
1. never do a "deal" on open.
2. if you want to buy shortly after open because you think the share price will move quickly away from your bid have only the deal ticket and the stock chart showing on the platform and observe the price movement on the chart.... if its moving quickly then wait for the price to slow and then make your decision whether want to "deal" - or bid at a safer distance away from the price hoping the price may come back to your preferred price level....
I am assuming that the time taken for a change in price at the exchange computers to get to my computer via various channels plus the time it takes for my deal signal to get back to the main exchange again would be a few seconds which in the case of a fast moving stock price you could end up paying for a position on a stock which is totally unsatisfactory.....this is what happened to me this morning.
3. another thought is to chance your luck at open and click deal, then thoroughly consider the value of your entry level immediately afterwards on the charts, and then immediately close out if the entry level is unsatisfactory -which is what I should have done.....at least you have given yourself best chnce at best price, and if you choose to close out the brokerage costs are comparatively small.
do any of the more experienced CFD traders have any advise they can share on the subject ???? ___________________________________________________
I got LIVE DATA FEED onto my market analyst charting program today and will display this on my box computer's 24" screen - so that I will be able to see all that is going on at the same time...I will continue to use my laptop also...
the live data feed is on a 2 week trial from PARITECH - you get their pulse program with it which I don't want.... the cost for the live data feed per annum if I go ahead is $1500 approx...... so I am going to have to start making some money.
