My second attempt at a trading account had a dodgy start, with CAML:Central Asia Metals dropping 6% in the first day. That's partly due to spread and commission, but also the fact my limit order for 203 shares triggered at 239.83p as the share price was dropping to an offer price of 237p.
Note to self - next time don't put a limit order for first thing in the morning.
Having said that - next time it will probably shoot up while I'm on the way to work and I may miss my chance to buy.
Actually - missing my chance to buy shouldn't matter.
I forgot who said it - probably Warren Buffett because he says just about everything else. "Better to be out of a stock wishing you were in, than in a stock wishing you were out"
So if I'm applying the rule that it's OK to swing at a load of pitches and miss in order to save it for the pitch that hits the sweet spot (that definitely was Buffett), then I need to be in control when I buy and sell.
On the other hand, if a share is above what I want to pay but I know I'm willing to pay a set figure below that, then it makes sense to leave that limit order to take advantage of any tree shakes.
Which is why I will leave the limit order for IQE:IQE at 99p despite it climbing to 103.7 offer price today.
I still haven't a clue what to buy with the rest - none of my cheaper shares are volatile enough to trade, except SBTX:SkinBioTherapeutics which is at the top of it's recent spike so not a good time.
The other cheapies are either dropping like a brick or mired in a never-ending pit!
Time to do some swotting and see what I can find...
No comments:
Post a Comment