300
6th January 2008, 12:19 PM
OK, so we shall start out with a ficticious $2000 to make it realistic for the forum members who accidentally get lost and find themselves in this area :p. I will keep a tally in a spreadsheet and get it in as an attachment. I have a commsec account so I will base trading figures on commsec fees which are normally $30 per trade (a buy or a sell). I will post up any information for why a buy is placed and will post the sources of the information. This way the RA portfolio can be used as a learning tool for all who follow the progress (reminds me of a greyhound that Ralph magazine bought for something like $20 and each edition, they had a small update on the progress of the wonderdog - I think they actually did quite well out of it in the end :D)
If a stock hits 30% up on the initial buy, we will assume that it has been sold at that price. I will look at the prices for the day and if the daily high is above the 30% ceiling, then we will assume it has been sold, take off the trade fee and put the rest back into the bank.
If a stock falls 15% below the buy price, we will assume that it has been sold at that price. Again, during the postmortem of the day's trading it is found that the floor has been met at any stage, the assumtion is that the entire holdings have been sold, take off the trade fee and put the takings into the bank.
A minimum purchase of 500 units is another limitation so we will be looking at the 'small fish' in terms of price - given that I am trying to make this as real as I can.
So, some background info on what it is that we are looking at. When a company is listed on the stock exchange, it is valued. The company issues an amount of shares in total and can make some (or all) of them available for investors to purchase, which effectively makes them co-owners of a company. Companies go about their business making money for their owners and with each contract won or new business started, the value of the company increases and thus so does the value of an individual share. Similarly, if a company cops a fine or heads into industrial action, the value of the company may fall which is reflected in the share price falling.
We will look at the cheap shares to start with - 10 cents or less. This will give us some volume in our stocks. I will start with only two shares given that we have not got too much to spend in the candy store! After a whole heap of research and a few seconds of thinking I have decided to go with a mining company PRE and to keep the education component as a focus as well as spreading the interest I will choose a medical stock IMI.
So for the past 2 hours, I have been looking at the ASX (http://www.asx.com.au)web site to check on the history of the shares. I have scoured a mining website called mining news (http://www.miningnews.net) for any bits of interesting news in that sector. This site is slightly annoying in that you can't read the stories but you get enough info from the headings to do some research. I have also researched my favourite site the stock forums (http://www.aussiestockforums.com) for the low down from a pretty good bunch of people.
OK so the two stocks broken down. IMI is IM Medical Limited (http://www.immedical.com.au/), I have been following for a while and they have designed some groovy technology allowing heart scans to be read in real time, remotely. This technology is being marketed around the world and is in some pretty interesting times right now as the uptake of the technology appears to be gaining momentum. The buy price is $0.029 going on the Friday's final price and we will start with 33,000 of these suckers to get us off and running. (33000 x 0.029 + 30 = $987)
PRE is the ASX code for Pacrim Energy Limited (http://www.pacrimenergy.com.au/) who have got some good gold action going on in WA. With recent gold prices hitting high levels, and positive share price movement in the recent months, this is the second choice. The buy price is $0.052 going on the Friday close and we can afford 18,000 of them to keep the IMI shares company. (18,000 x 0.052 + 30 = $966) This leaves us $47.00 in the bank for a rainy day. So, lets see how it all goes :)
Predicted sell points are;
for IMI at $0.037 (1.3 x 0.029) and $0.025 (0.85 x 0.029) and PRE at $0.067 (1.3 x 0.052) and $0.045 (0.85 x 0.052). Spreadsheet to be posted up later.
Are we cool peoples?? I will talk to the Mods to see about getting the spreadsheet posted up some how.
If a stock hits 30% up on the initial buy, we will assume that it has been sold at that price. I will look at the prices for the day and if the daily high is above the 30% ceiling, then we will assume it has been sold, take off the trade fee and put the rest back into the bank.
If a stock falls 15% below the buy price, we will assume that it has been sold at that price. Again, during the postmortem of the day's trading it is found that the floor has been met at any stage, the assumtion is that the entire holdings have been sold, take off the trade fee and put the takings into the bank.
A minimum purchase of 500 units is another limitation so we will be looking at the 'small fish' in terms of price - given that I am trying to make this as real as I can.
So, some background info on what it is that we are looking at. When a company is listed on the stock exchange, it is valued. The company issues an amount of shares in total and can make some (or all) of them available for investors to purchase, which effectively makes them co-owners of a company. Companies go about their business making money for their owners and with each contract won or new business started, the value of the company increases and thus so does the value of an individual share. Similarly, if a company cops a fine or heads into industrial action, the value of the company may fall which is reflected in the share price falling.
We will look at the cheap shares to start with - 10 cents or less. This will give us some volume in our stocks. I will start with only two shares given that we have not got too much to spend in the candy store! After a whole heap of research and a few seconds of thinking I have decided to go with a mining company PRE and to keep the education component as a focus as well as spreading the interest I will choose a medical stock IMI.
So for the past 2 hours, I have been looking at the ASX (http://www.asx.com.au)web site to check on the history of the shares. I have scoured a mining website called mining news (http://www.miningnews.net) for any bits of interesting news in that sector. This site is slightly annoying in that you can't read the stories but you get enough info from the headings to do some research. I have also researched my favourite site the stock forums (http://www.aussiestockforums.com) for the low down from a pretty good bunch of people.
OK so the two stocks broken down. IMI is IM Medical Limited (http://www.immedical.com.au/), I have been following for a while and they have designed some groovy technology allowing heart scans to be read in real time, remotely. This technology is being marketed around the world and is in some pretty interesting times right now as the uptake of the technology appears to be gaining momentum. The buy price is $0.029 going on the Friday's final price and we will start with 33,000 of these suckers to get us off and running. (33000 x 0.029 + 30 = $987)
PRE is the ASX code for Pacrim Energy Limited (http://www.pacrimenergy.com.au/) who have got some good gold action going on in WA. With recent gold prices hitting high levels, and positive share price movement in the recent months, this is the second choice. The buy price is $0.052 going on the Friday close and we can afford 18,000 of them to keep the IMI shares company. (18,000 x 0.052 + 30 = $966) This leaves us $47.00 in the bank for a rainy day. So, lets see how it all goes :)
Predicted sell points are;
for IMI at $0.037 (1.3 x 0.029) and $0.025 (0.85 x 0.029) and PRE at $0.067 (1.3 x 0.052) and $0.045 (0.85 x 0.052). Spreadsheet to be posted up later.
Are we cool peoples?? I will talk to the Mods to see about getting the spreadsheet posted up some how.