Subscribe to this topicForums > General Investment Discussion > Topic: A little trading advice please
| Feb 19th, 07:34 Dave Beaumont |
A little trading advice please | |
| Until last year, I'd never come across a stock-exchange... Oh, I knew they existed - and even roughly how they work. Educated by Eddie Murphy and Dan Ackroyd in "Trading Places", I know I need to buy my shares when the price is low and sell them when it's high. I know that supply and demand will affect the prices and make them go up and down. What I can't get my head around though, is why the Bid and Ask prices on certain companies are so far separated... For instance, snapshot from this second in time.. BIG Beck Investment Group -Bid: 1.00 Ask:4.50 Last:1.00 and yet SLW SLWallet.com - Bid:0.49 Ask:0.50 Last:0.49 I know what the bid and ask prices ARE, I just don't see how they can be so far removed from each other - in some cases 4.5x the size. Could a financial wizzard wave their magic wand in my direction please? lol Thanks in advance! Dave. |
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| Feb 19th, 07:41 Servme Nakamura |
Re: A little trading advice please | |
| Right now you get extreme spreads due to market instability. People will put in very low bids to grab stock at a very low price in case people panic, and this gives you the distorted views as above. For SLWallet for instance, there is a large volume and the spread is pretty small due to the market finding a balance (way to low if you ask me, but that wasn't the question). |
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| Feb 19th, 08:26 Dave Beaumont |
Re: A little trading advice please | |
| Well yes, sure I can see that - but the example I gave has a ridiculously high Ask price that is miles above the bid - so is this the HIGHEST Ask that's displayed, or an average of all the outstanding limit buys? | ||
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| Feb 19th, 08:41 Servme Nakamura |
Re: A little trading advice please | |
| In fact that's the highest bid and the lowest ask price you're watching. This probably means someone is willing to sell their shares, providing you pay them very well. They probably don't want to sell at all, but given the chance that someone comes along that really wants the stock, they will sell. When eying the highest bid, the chance is slim though. | ||
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| Feb 19th, 08:42 Ashleigh Wade |
Re: A little trading advice please | |
| The lowest ask price is the lowest price in which someone is willing to sell shares. The highest bid price is the highest someone is willing to pay for shares. In your example it means the people who hold shares for sale value thier shares at a considerably higher price than the people who are bidding. To me this also indicates either a large market buy or sell order rencently went through and created such a gap (or all orders were cancelled and are beginning to fill in) The orders are literal - meaning each order is displayed as placed. |
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| Feb 19th, 09:24 Dave Beaumont |
Re: A little trading advice please | |
| Servme and Ashleigh - thank you both very much, Suddenly it just clicked in my mind and I understand now! Highest bid, lowest ask - of course :D What SL needs now, is investment brokers who can advise and help people get a nice strong portfolio... Or perhaps they already exist - who knows? Thanks again! |
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| Feb 19th, 13:45 iVentures Volitant |
Re: A little trading advice please | |
| Dave, The best investment advisor whom I can recommend to you is yourself. Performing due diligence is essential before making any type of investment as these are considered to be a risk. If you have any questions as you are trading, we have quite a handful of experienced traders and/or investors who can better help you. iVentures Group www.sliventures.com |
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| Feb 19th, 17:35 Strongman Shelford |
Re: A little trading advice please | |
| I can give you a great piece of advise: invest in SL stocks only if you are ready to lose 100% of it and don`t cry when it happens LOL remember: if you are serious about investing, go to NYSE or buy silver & gold. Dollar is crashing. Sl investing? Buy the people behind, not the stock. |
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| Feb 19th, 17:56 William Rustamova |
Re: A little trading advice please | |
| "Buy when stock prices are low and hold on to your securities... People seem unable to grasp these simple principles. They do not buy when prices are low. They are fearful of bargains." J. Paul Getty |
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| Feb 19th, 19:57 Guardian Market |
Re: A little trading advice please | |
| Rule #1: Do not buy what you do not know. Do your research and ask around. If something doesn't smell right, or if you can't understand how they're making money (don't be afraid to admit that to yourself) then you're better off letting that "deal" pass by and missing one opportunity than to invest in a meaningless stock. Talk to the CEOs. Ask how business is going, see what they're like. Is this a primary job to them, a second job, or a game? Are they stressed and handling it well, or relaxed? For one company (on another exchange) I was suspicious of I asked the CEO about the issue I was having, and he answered back with a sarcastic response. I immediately dumped all my shares (not a big deal, except to me). Two weeks later, it was halted, and a month later delisted. SL investing is far more risky than real-life investing, so be prepared to lose anything you put in here, just as others have said. Rewards can be proportional, but the risk cannot be denied. |
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