Author Topic: How to identify frequently traded shares  (Read 28671 times)

Bevan

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Re: How to identify frequently traded shares
« Reply #15 on: January 09, 2014, 08:33:32 am »
Have you purchased/sold in the last 24 hours ;)
You'll notice a pending next to your line item with a price update once live prices are in!

Oh, well done. Thanks for the efforts.
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Patrick

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Re: How to identify frequently traded shares
« Reply #16 on: January 09, 2014, 09:41:13 am »
Ok, here's the list of infrequently traded shares (thanks Aragorn), I've sorted it by trade frequency. Now all we need to do is draw the line.

I want at least 16 trades a day (2 an hour) but if we want to keep up with the updates we need every 15 minutes ie 32 a day.

Comments?

Bevan

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Re: How to identify frequently traded shares
« Reply #17 on: January 09, 2014, 10:00:39 am »
Both Keaton and Wescoal are in there.... Keaton is currently helping gnomez to top spot and Wescoal gave me 142% return last year. What is the point of taking out infrequently traded shares? In real life you would obviously have bid:offer slippage but you've already removed penny stocks which is the big issue so slippage on the stocks that remain is not as big an issue surely?
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Bundu

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Re: How to identify frequently traded shares
« Reply #18 on: January 09, 2014, 11:41:13 am »
Patrick this probably a stupid question, but do we buy at the last transaction price or at the offer price?
and do we sell at the last transaction price or at the bid price?
« Last Edit: Tomorrow at 06:13:55 PM by Bundu »

Patrick

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Re: How to identify frequently traded shares
« Reply #19 on: January 09, 2014, 11:44:19 am »
Last transaction for both.

Bundu

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Re: How to identify frequently traded shares
« Reply #20 on: January 09, 2014, 11:58:16 am »
do you get the bid and offer prices?
That would be closest to reality IMO
« Last Edit: Tomorrow at 06:13:55 PM by Bundu »

Patrick

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Re: How to identify frequently traded shares
« Reply #21 on: January 09, 2014, 12:01:16 pm »
do you get the bid and offer prices?
That would be closest to reality IMO

Wish I could but it's too costly from the JSE.

Bundu

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Re: How to identify frequently traded shares
« Reply #22 on: January 09, 2014, 12:07:04 pm »
fair enough :TU:
« Last Edit: Tomorrow at 06:13:55 PM by Bundu »

gcr

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Re: How to identify frequently traded shares
« Reply #23 on: January 09, 2014, 02:30:22 pm »
do you get the bid and offer prices?
That would be closest to reality IMO
I don't know that the bid and offer prices are closer to reality than the real transaction prices. In some cases the highest bid/offer price would be a few cents off the transaction figure. By the same token in a choppy market the bid and offer could be quite substantial. The fundamentals of the exchange are that at a point the bidder and offeror agree a price at which they are prepared to buy/sell and the transaction is concluded. So my view is that we need to stick with the last transaction price 
Not everything that counts, can be counted, and, not everything that can be counted counts - Albert Einstein

Bevan

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Re: How to identify frequently traded shares
« Reply #24 on: January 09, 2014, 02:54:45 pm »
do you get the bid and offer prices?
That would be closest to reality IMO
I don't know that the bid and offer prices are closer to reality than the real transaction prices. In some cases the highest bid/offer price would be a few cents off the transaction figure. By the same token in a choppy market the bid and offer could be quite substantial. The fundamentals of the exchange are that at a point the bidder and offeror agree a price at which they are prepared to buy/sell and the transaction is concluded. So my view is that we need to stick with the last transaction price

Last transaction price is always the reported price. The bid (for sellers) and offer (for buyers) is the realistic transaction price at any point in time. However, with many electronic systems there is often very little volume on the leading bid and / or offer. The price you end up trading at (assuming a best price order) would be the weighted average of the price and volume available. One really needs to see the "stack" i.e. list of all bids and offers and the associated volumes to see where traders are actually interested in trading at.

Often in fast markets you will see electronic systems picking off the bid and offer in small amounts, trying to lead volume into the trade. However, volume can often be hidden as part of an "iceberg" order e.g. you think you are hitting the bid in 1,000 lots and driving the price down but the bid keeps coming back at the same price because the trader has placed an iceberg for 10,000 lots. These are where the real games are played in trading.  ;)

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mark.saved.duplessis

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Re: How to identify frequently traded shares
« Reply #25 on: January 10, 2014, 06:27:52 am »
Hi all...share trading is very foreign to me so I am trying to wrap my head around this...and with all the to and fro about trying to make the playing field more level here its even more confusing. I get that the difference in real time with the JSE can enable guys to cheat - thus why my colleagues and I who are playing don't look there - otherwise what's the point right. But what I don't understand is the issue of frequently traded shares?

Please explain it in easy English for me :)

MrMafia

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Re: How to identify frequently traded shares
« Reply #26 on: January 10, 2014, 08:24:11 am »
My thoughts on the infrequently traded shares...

While they make it easy for someone to exploit the system on this site by keeping a watchful eye on live data I think there is no need to also eliminate infrequently traded shares.  Perhaps bring the "live" trading back and instead disable the selling feature for 24 hours after buying?  Some of those shares eliminated are still attractive long term despite being "infrequent". 

The problem is most of the beginners AFAIK also use other free online resources that are also delayed.  So my trade would in effect be 30 minutes late here which means if I read a breaking story I can't capitalize on it and at the end of the year I could potentially be 4% down.  (I lost 4% yesterday on Advtech because of the pending rule, I was 14th place on leaderboard before it took me back)

I haven't bought shares before so I don't know if there is any delay in real terms.  If so then you can still leave the pending feature enabled to simulate this...in which case I'm not too heart sore about my 4% loss :P

But in any event maybe a 24 hour selling disable after purchase is the way to go? 

MrMafia

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Re: How to identify frequently traded shares
« Reply #27 on: January 10, 2014, 10:06:14 am »
Or another suggestion.  Put the trading back to normal but make the selling 15 minutes delayed.  Problem solved?

mark.saved.duplessis

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Re: How to identify frequently traded shares
« Reply #28 on: January 10, 2014, 10:19:03 am »
Bring back the shares people already have...level the playing field. I also have a share that is not available anymore and is doing well...

Orca

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Re: How to identify frequently traded shares
« Reply #29 on: January 10, 2014, 11:01:13 am »
Hi all...share trading is very foreign to me so I am trying to wrap my head around this...and with all the to and fro about trying to make the playing field more level here its even more confusing. I get that the difference in real time with the JSE can enable guys to cheat - thus why my colleagues and I who are playing don't look there - otherwise what's the point right. But what I don't understand is the issue of frequently traded shares?

Please explain it in easy English for me :)

Shares that are not traded frequently enough cannot be bought or sold at the given price as the spread is too high and the volumes too low.
Spread is the difference between the next offer and next bid price. A stock with a price of 10c will have a seller offering to sell at 15c. This is 50% higher and the volume is also normally low.
In reality you could never buy at the quoted price. You would have to buy at 15c or place an offer at 10c and wait for weeks to get your large volume bought up.
I started here with nothing and still have most of it left.