It is currently Wed Jun 20, 2018 7:17 am




Post new topic Reply to topic  [ 2 posts ] 
 Cue for stock market? 
Author Message
Forum Beginner
Forum Beginner
User avatar

Joined: Thu Jul 19, 2007 6:58 pm
Posts: 11
Post Cue for stock market?
How would you set up a cue for trading the tock market? I'm not sure if terms like up and down would work because they seem really subjective? What terms do you think I should use. Thanks everyone! This stuff is really exciting.


Tue Dec 04, 2007 7:00 pm
Profile
Professional
Professional
User avatar

Joined: Fri Jul 20, 2007 12:23 am
Posts: 227
Post Re: Cue for stock market?
SuperDowser wrote:
How would you set up a cue for trading the tock market? I'm not sure if terms like up and down would work because they seem really subjective? What terms do you think I should use. Thanks everyone! This stuff is really exciting.


I was responding to another post in this part of the forum and realized no one had ever responded to your post! Sorry about that. You're right, simply using the terms 'up' or 'down' with no reference is too ambiguous, since those two terms are sensitive to changing point-of-view. The solution is to specify specific start and end points. Here's one way to answer your question. "Will stock XYZ on the NYSE close two points or more above its opening price on Wednesday, 16 January 2008?" You need to build in a "point spread" like this, because if you only ask if it will be up from its open, it may only be a fraction of a point, not even enough to cover transaction costs. You have to build in the margin you need to make an action profitable.

In those cases where you need to make a decision no matter which way the stock goes, you can phrase it this way: "Will stock XYZ on the NYSE close two points or more above or below its opening price on Wednesday, 16 January 2008?" Of course, the point spread might be different for the up or down case -- and for some questions you may only want to know whether it goes up or down. But you always need to specify a set start and end point.

Finally, the start/end points aren't limited to just the open and close of the market. You can pick any time point you want. (By the way, for practice, you can dowse stocks based on their performance on previous days, since that is easily looked up in stock performance data bases.)

Hope that helps!
Paul

_________________
Begin your journey today...
Image


Wed Jan 16, 2008 6:14 pm
Profile
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 2 posts ] 


Who is online

Users browsing this forum: No registered users and 1 guest


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
cron
Powered by phpBB © phpBB Group.
Designed by Vjacheslav Trushkin for Free Forums/DivisionCore.