If you find the text too small to read on this website, press the CTRL button and,
without taking your finger off, press the + button, which will enlarge the text.
Keep doing it until you have a comfortable reading size.
(Use the - button to reduce the size)

Today's quote:

Tuesday, June 23, 2020

What a day for an intra-day trade


These irrational markets offer some exciting intra-day trading opportunities but it requires nerves of steel or a devil-may-care attitude, neither of which I possess (but I'm working on it).

Take my favourite, BHP: it opened at $35.80, went as high as $36.04 by mid-morning before dropping to $35.08 just before lunch. It recovered to $35.65 for much of the afternoon, before the day's close at $35.64.

Daytrading is based on the premise that no one ever went broke taking a profit, and while no one ever bought in at the very bottom and sold out at the very top, even a trade from $35.80 down to $35.10 and then back again to $35.60 would have netted a cool $12,000 (before brokerage) on 10,000 shares, $24,000 on 20,000 shares, $60,000 on 50,000 shares, etc.

And it isn't just BHP; the banks, too, have huge intra-day trading ranges: CBA, from $68.29 to $69.66; NAB, from $18.42 to $18.90; WBC, from $17.88 to $18.39. Even good ol' WOW ranged from $35.97 to $36.95.


Today's peaks and troughs in BHP


Of course, all this is with wonderful hindsight, and these are the sort of charts they are spruiking at those daytrading seminars which I've never attended and never will. If I ever made that sort of money in just one day, I may well be the very first daytrader in history who'd ever done so.

"What a day for a daydream; Custom made for a daydreamin' boy; And now I'm lost in a daydream; Dreamin 'bout my bundle of joy."

Googlemap Riverbend