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Buying and selling shares

Discussion in 'The Pub' started by Paulstar, Oct 17, 2009.

  1. Hey guys,

    Im new to buying shares though ive been watching share prices for over a year now. I have a commsec account ($600 free brokerage!!) but i dont know if i can use it for what i want and i dont want to experiment and lose money if i can just ask around and get the answer.

    Basically ive only bought one lot of shares so far, i got STW and it took 3 days to settle.

    My question is. What if i click buy in the morning, and click sell in the afternoon..i still have to wait 3 days for it to settle as i understand but do i buy and sell at the prices that i clicked at...or the price that comes up in 3 days time?

    Is commsec suitable for this or should i try a different trading account?
    Any information wold be good!

  2. I think that asking the brokerage firm would give you a better answer.
  3. What better place to ask for financial advice than from a motorcycling forum! :p

    You will buy/sell at the price set when you actioned the request.

    Different brokers are suitable for different purposes. Ie day traders dealing with small numbers have different needs than long term traders dealing with huge numbers. Best research them.
  4. Public Ramble(newWords AS Suspicious, Humour AS Programmers)
    On error goto Note

    set newWords = "When you 'Buy' or 'Sell' you enter a contract. Price, quantity, and buy/sell item is set at that time.

    Your broker (online or other) should send you a copy of the contract when you agree to the trade.

    Settlement occurs at 'T+3' - ie:Trade + 3 business days, at the contract requirements, in chronological order.

    So if you buy, then later sell the same day/hour/minute contract for buy will be processed first then the sell.

    Even options (put or call) are price/quantity/item set - just forward dated, and contractually obligated.

    The system relys on the obligation of the contract, and there are penalties for non-performace (ie: failure to settle as agreed). It seems to need certainty on this level at least.

    As for suitability of online or other broker - can't help you there. If you are a small trader you might find fees at an established brokerage onerous, but then there is a level of information and service that is offered that you might want. Plenty of info out there to read up on. I have used both online and traditional brokers and have won/lost as much from broker recomendations as with my own gut instincts. Your call.

    Do your homework, be careful, always cross-reference your information and tips. A tip from two different sources may just show two people who made the same mistake, you decide if you wish to join them.

    ... and don't listen to what you are told on a motorcyle forum, or any other forum for that matter!"

    Exit Ramble

    Note: I am not an expert, nor do I work in the finance industry. None of the above should be considered as advice. It is merely my fertile imagination at work. I know nothing, nu-think!!

    End RambleO:)
  5. Gday I have been selling and buying shares for over 10 years for myself and clients of some major Australian, US and UK Companies.

    During the GFC I lost about 30K on the sharemarket and have not made that back. A friend of mine has been doing it for 20 years and is now a multi millionaire day trader, so there is money to be made but also be prepared to lose it all.

    Anyway to your original question you pay or get paid whatever the price you bought / sold the shares on the day of the transaction / contract note, like any market auction, think of a house, ebay etc and pay later for a buy or get paid later for a sell, T +3,(3 days from the day of the trade you executed).

    As with any share order you can select the market price or nominate a price called limit price to buy or sell. Note with a limit order your price may not be reached and therefore the order wont be executed.

    Commsec also have conditional trading tools allowing you to place stop loss orders - Falling Sell, Falling Buy orders, Rising Sell orders or Rising Buy orders, this is a rather compicated area so you will need to read thru the Commsec site and also take an online test if you want this activated into your trading account.

    Good luck.
  6. read your pm's, I've sent you one!
  7. Go indexed managed funds and leave the money alone.
    Doing anything else is pretty much the same as rolling dice. This is born out by the fact that a lot of the "active" managed funds do worse than the ones that simply track the asx top 200 or whatever.

    Vanguard is a mob I go through. Pretty easy to setup (have to send in some paperwork though.. but nothing major). You need 5K to start, then can add as little as 100 bucks via bpay. Easy. Can open other types of managed funds via 5k deposits (no paperwork needed once you have the first one setup).

    All trying to do day trading seems to do (from the people I know that have done it) is waste a lot of time and eat up a tonne of money in brokerage fees. Stories go something like "In the end I came out a few hundred bucks on top (if you don't count the trading fees and time spent)" or "I broke even (if you ignore the trading fees and time spent)".