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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Proud Deplorable who wrote (35330)	10/21/2005 10:44:36 PM
From: Cogito Ergo Sum	Read Replies (1) \| Respond to of 313948

I must be not saying this right... (not you ralph, I've had a couple of questions) I'm really talking about two things here.. slippage and liquidity... my examples To XXXXXX: From Spotted Cat: Wait a moment, you can buy let's say 30K CLG @ 1.72 = $ 51,600 for $ 25 commission? No no... but read on anyway... it's worth it... FWIW I'm going to look at Questrade and Interactive Brokers.. Apparently their rates are much cheaper on big orders... Here is an example.. Yes I get a discount too because of account size (not the max LOL) but still... Order#1 Order entered to: Buy Quantity: 33700 Minimum Quantity: 0 For Symbol: CLG Price Entered: Market Potential Stop Requested: None Trading on: Canadian Exchange To Settle in: Canadian Currency Order will expire: * Today Only Contact Phone #: 416 286 5378 Estimated Order Value: $57,964.00 CDN Estimated Commission: $709.00 CDN 5 Star Program Discount*: ($106.35) CDN Estimated Total Order Value: $58,566.65 CDN Order#2 Order entered to: Buy Quantity: 1000 Minimum Quantity: 0 For Symbol: ECA Price Entered: Market Potential Stop Requested: None Trading on: Canadian Exchange To Settle in: Canadian Currency Order will expire: Today Only Contact Phone #: 416 286 5378 Estimated Order Value: $58,100.00 CDN Estimated Commission: $25.00 CDN Estimated Total Order Value: $58,125.00 CDN 700$ vs 25$ for the same dollar value... and the are only the buy side...You need to sell also... so for CLG I need to make 1400$ profit TO JUST BREAK EVEN... ECA was up 2.30 at one point today.. I only have 1K shares and it traded 4,430,259 today... much more yesterday..... see the liquidity ? If I had sold my measly 1K shares of ECA today I make 2300$-50$ total commission... for a 2250$ profit.. on a VERY liquid stock.. No problem selling even at market.. so I might miss a few cents.. or for 4$ more only I use a limit.. not worth worrying about anyway.. Worse... Now look at the depth on CLG: What's gonna happen if I just dump my 33700 shares ? .... yech... Total # Total # Price Size Orders Price Size Orders $1.68 10 1 $1.72 25 1 $1.66 10 1 $1.73 50 1 $1.65 85 2 $1.74 10 1 $1.62 11 1 $1.75 31 1 $1.61 55 1 $1.80 10 1 $1.60 125 2 $1.85 6 1 $1.55 10 1 $1.89 27 1 $1.54 80 1 $1.90 220 3 $1.53 150 1 $1.92 16 1 $1.30 10 1 $1.94 65 1 Eye opening eh ? That's slippage... unbelievable... I gave them the last 2 years $80,000 each year in commission You should be madder than me LOL... 80 grand is not small coin.. I was basically flat last year but my discount broker made enough off my RRSP account alone to buy a nice little car... so you see all of my profit went to cover commissions... wouldn't you like to have say 60 grand extra in your account for each of those two years... That's part of what I'm learning... money management... it forced me to really analise it.. and it ain't pretty eh ? Now this doesn't mean I'm not trading little guys anymore ... but the days of locking in too much of my account in these junior hole in the grounds is over... I expect my remaining CKG and TK to pan out... but I'm gonna focus a lot more on stocks with consistent volume.... day in day out and bigger prices... to generate regular income... it also eliminates the boom bust mentality in trading.... There is this fellow that makes consistent returns it certainly appears since he posts all his regular trading.. Subject 55245 in any market... Boy if even half my PF was doing that for me wouldn't life be grand... ? That's the goal... besides I may not be able to rely on income trusts very much longer... enjoy, Kastel Edit Yesterday my position cost me 75$... I got in... I got stopped out... I got back in lower... 25$in 25$out 25$in