ASX newbie

If you saw Friday’s post you would have seen that I sold AUZ and bought MPO .

It was gratifying to see AUZ go onto 7.0 and finish at a high of 6.9 . an increase of 16.95% on a good turnover of 75.9 million shares.But I am still happy with what I made for only holding them for 4 days.

I have put them on my “special daily” watch list and might possibly get back in again later.

Now MPO went up to a high of 4.8, an increase of 11.63%,This is  on 10.7 million turnover and I am still not altogether 100% happy with their future prospects though,just does not feel right.

At this stage there are a fraction more sellers than buyers, and a large sell order of over 1 .2 million sitting at around 5.2. and no large buy orders to soak up this excess stock.

So have decided to get out around 4.9 . I make $ 150 on the deal which is still ok as I did only buy them last Friday. I have learnt not to be ” too greedy”

As I only play with around $2,000 per trade on average, it still works out a very nice return over a long period of time.

You might not think so, but I am still a rank “Amateur Share ” trader and I am learning all the time,in fact you never stop learning at this game.

I know I have mentioned this in the past but is worth mentioning again. One of the things that I do consistently is to “Paper trade.”

This I find invaluable for fine tuning my skills and to try out NEW  methods of trading.all without putting my hard earned capital at risk.

The sites that I use are www.sharecafe.com.au and www.asx.com.au  . At sharecafe  they start at the begining of every month, while the asx is a 3 monthly one which is currently running till November.

Of course you can do it your self at home. The reasons I use these the two sites is because they offer free prizes, which is a added incentive. So give it some thought.

I am now off to look at my watchlist to see what share I will buy tomorrow when MPO sells in the morning.

I keep a list of around  50 or so prospects and whittle them down to the best 5 to 10 and then am very ruthless then in picking the best one.

 Occaisonally I find that not one will fit my criteria, so I do not trade that day. I have found it better to be safe than sorry than stand the chance of doing my dough.