Paul_J
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Registered: 6th Jun 02
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Firstly, FTSE is down to 3800's ?  why is it so low at the moment
Secondly, I've just been watching several stocks every day lately... They seem to be 'stablish' - but the actual trend is them fluctuating up and down constantly.
For example, Royal Bank of Scotland 
If you look over a long period of a month, they're stock price has remained fairly stable at around 22 ish pence...
However, on a day by day basis they're going up and down, often peaking at around 25-26 pence and hitting a bottom of about 18 pence.
This is literally repeating constantly...
What is actually stopping me from say, waiting till the next time I see them around the 18 pence marker (probably a days time), banging £1000 on... Then waiting for it to rise to say 22-24 pence, selling, then waiting for it to drop again, and repeat...
I could be getting 10-30% each time, which on £1000 = £100 to £300. The rate of the these fluctuations I could do this several times in 1 week.
Also put in a precaution of say a stop loss at 16 pence if it continues the trend of falling, it re sells all shares. So max loss would be 10-12% ...
i.e., I may make £100-£300 a couple of times, and at worst I'll lose £100 once.
Obv fee's of £10 or so a time?
I know RBS was looking to be nationalised, however it doesn't seem on the cards now - and if it was their shares would drop below 16 pence before the action is taken and my stop loss would catch it.
I know people will say 'it could go up and down etc' but if you honestly look at the trend of what these stocks have been doing constantly for the last weeks / month - it's like a roller coaster that's just rising and falling but actually going no where... (i.e. averaging around 22p).
Opinions?
[Edited on 23-02-2009 by Paul_J]
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James
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Registered: 1st Jun 02
Location: Surrey
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Buying Bank of America shares FTW!
Note: Please don't actually do this as we will probably get nationalised
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Cosmo
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Registered: 29th Mar 01
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I wouldnt be touching RBS just yet, maybe if you'd of realised a few weeks ago, as they are looking to sell off a huge part of their business as well as cut about 10-20% of jobs so is going to drop a fair amount IMO.
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Paul_J
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Registered: 6th Jun 02
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Actually ignore that 
I just looked at the actual graph and saw it hadn't been going as high or low as often as I thought it had...
more like
buy at 20 - sell at 22 style fluctuations... therefore the profits wouldn't really be worth it after fees on the money I'd be trading...
nevermind.
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James
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On a serious note.......
There is nothing to stop you doing this at all and realistically you will probably make a bit of money.
However the transaction fee and commission you pay may be more than you think.
If you put a stop loss on you should be ok but perhaps you should also look at hedging?
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Robbo
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Registered: 6th Aug 02
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Agreed dont touch RBS but Barclays are yo=yoing ina similar fashion so maybe try them.
As for whats stopping you, only the risk that they may go the worng way so start small and only invest what youre willing to lose!
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Hammer
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Registered: 11th Feb 04
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You're over simplifying it. If it was as easy as buying shares low and selling them high based on a graph of the past months fluctuation then everyone would be millionaires.
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Russ
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RBS will be worth a fortune again in a couple of years, buying shares when they are so cheap will make you rich. fact
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Brett
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Probs best to have a little play on fantasy stock exchange first on Facebook. At least you're not losing your own money then.
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Paul_J
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Registered: 6th Jun 02
Location: London
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quote:
Originally posted by Robbo
Agreed dont touch RBS but Barclays are yo=yoing ina similar fashion so maybe try them.
As for whats stopping you, only the risk that they may go the worng way so start small and only invest what youre willing to lose!
Yeh I've got all the banks currently on watch lists...
Yeh Barclays, lloyds they've all been just yoyo'ing up and down over a small area...
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willay
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FTSE is low because of companies going bust due to there being a complete lack of credit and banks dont want to lend to anyone, oh and something called a recession.
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James
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quote:
Originally posted by Hammer
You're over simplifying it. If it was as easy as buying shares low and selling them high based on a graph of the past months fluctuation then everyone would be millionaires.
Well it's not really over simplifying it. It's just that your average Joe won't want to take the risk and also won't understand exactly what affects share prices.
For example a lot of people wouldn't even realised that a simple press release could make the share prices rally, or plummit.
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Cosmo
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quote:
Originally posted by Russ
RBS will be worth a fortune again in a couple of years, buying shares when they are so cheap will make you rich. fact
Agreed, but they arent going to rebound anytime soon so probably not the time to be jumping in big just yet.
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James
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quote:
Originally posted by loafofbrett
Probs best to have a little play on fantasy stock exchange first on Facebook. At least you're not losing your own money then.
Use Bull Bearings if it isn't blocked at work.
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willay
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quote:
Originally posted by Cosmo
quote:
Originally posted by Russ
RBS will be worth a fortune again in a couple of years, buying shares when they are so cheap will make you rich. fact
Agreed, but they arent going to rebound anytime soon so probably not the time to be jumping in big just yet.
long term investment, very long
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Hammer
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Registered: 11th Feb 04
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quote:
Originally posted by James
quote:
Originally posted by Hammer
You're over simplifying it. If it was as easy as buying shares low and selling them high based on a graph of the past months fluctuation then everyone would be millionaires.
Well it's not really over simplifying it. It's just that your average Joe won't want to take the risk and also won't understand exactly what affects share prices.
For example a lot of people wouldn't even realised that a simple press release could make the share prices rally, or plummit.
Exactly, so if information is leaked to the exchange that RBS are skimming 20,000 jobs in the next week you can stick your pie chart of the last months market movement in the bin.
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Paul_J
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Registered: 6th Jun 02
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quote:
Originally posted by Hammer
You're over simplifying it. If it was as easy as buying shares low and selling them high based on a graph of the past months fluctuation then everyone would be millionaires.
Not really Hammer...
Shares are always moving up and down, but often the amounts they move are so minor it's not worth investing in this fashion...
For example if google goes from 600 to 610 in a day, It's actually moved 10 pence but only going to gain you 1-2% - so if you had £1000 on, you'd only gain £10 / £20 ... So not worth trading in this style at all...
However, because shares like RBS are so cheap, if it rises or falls by pence the % gain is currently very high... as a result these banks are on a daily basis rising and falling by ~ 10 % ... but overall actually staying same share price.
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Russ
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well if your not in a rush and have a few k going spare..
10x what they are worth now in a few years easy.. considering they were around 30x what they are worth now about 18-24 months ao 
edited as i have fat fingers
[Edited on 23-02-2009 by Russ]
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willay
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of course theres also the possibility that RBS gets nationalised and you loose all your money. that would be proper shit
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willay
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quote:
Originally posted by Hammer
quote:
Originally posted by James
quote:
Originally posted by Hammer
You're over simplifying it. If it was as easy as buying shares low and selling them high based on a graph of the past months fluctuation then everyone would be millionaires.
Well it's not really over simplifying it. It's just that your average Joe won't want to take the risk and also won't understand exactly what affects share prices.
For example a lot of people wouldn't even realised that a simple press release could make the share prices rally, or plummit.
Exactly, so if information is leaked to the exchange that RBS are skimming 20,000 jobs in the next week you can stick your pie chart of the last months market movement in the bin.
the exchange wont give a fuck, its the media and analysts that use the information and spread it.
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willay
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quote:
Originally posted by Russ
well if your not in a rush and have a few k going spare..
10x what they are worth now in a few years easy.. considering they were around 60x what they are worth now about 18-24 months ao
yes but alot of that was overpriced assets, did you not hear about some of the shit they found out about lemans when PWC went through their books? 
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Russ
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quote:
Originally posted by willay
of course theres also the possibility that RBS gets nationalised and you loose all your money. that would be proper shit
they wont be, imo
but they couldbe and your money would be fucked
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AndyKent
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Registered: 3rd Sep 05
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Paul, forget stocks, get yourself on Betfair and trade the sports markets - I'm doing it every day and doing pretty well.
Started depositing £50, lost it all
Deposited another £50 with a decent strategy until I'd made £125, then withdrew £100 so I was actually playing with other peoples money.
I'm now up to £155, mostly since Christmas.
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Paul_J
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Registered: 6th Jun 02
Location: London
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quote:
Originally posted by Hammer
quote:
Originally posted by James
quote:
Originally posted by Hammer
You're over simplifying it. If it was as easy as buying shares low and selling them high based on a graph of the past months fluctuation then everyone would be millionaires.
Well it's not really over simplifying it. It's just that your average Joe won't want to take the risk and also won't understand exactly what affects share prices.
For example a lot of people wouldn't even realised that a simple press release could make the share prices rally, or plummit.
Exactly, so if information is leaked to the exchange that RBS are skimming 20,000 jobs in the next week you can stick your pie chart of the last months market movement in the bin.
Then in that situation you've lost MAX £100... and can sit back and think 'oh well gave it a shot'...
If you're lucky, you may of been able to catch it yo yo once or twice and already made £100-£200 in profit before the above happens...
it's all about small movements, but big percentage changes, setting yourself a top and bottom and making sure you have a stop loss in effect... and watching the markets live all day long.
For example, technically if you set a 'buy at 20pence', sell at 22 pence, stop loss of 17 pence on RBS for the last month... you'd gain 10% every fluctuation and have done this probably at least 5 times by now.
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willay
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you do know that RBS bought out another bank in the last 1-2 years and that bank could also have aload of bullshit assets that they hyped up? loads of variables to take in consideration regarding RBS's price bouncing back up. Good luck
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