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And the same to you sir. The best of luck to the both of us :)
Your point about gambling is very valid. The reason why profits on spread betting is not taxed is because it falls under gambling laws
All the best with your investments. Agreed that BMN is a long term play ;)
I do look at and watch charts from time to time and have tried to study them (i use tradingview which also seems to be supporting quite a strong buy at the moment from my limited knowledge).
I did not think that spread betting platforms directly affected the share price in real time? So people betting on those movements doesn't really affect me that much in the moment, other than when the platforms have to hedge and cover their positions. Prepared to be corrected on that!
I appreciate the people selling the shares may be leveraged elsewhere as well to increase their swings and exposure. I also appreciate some people (the minority) can do this and make a profit. But gambling is gambling and gambling in a non zero sum game where the house is removing money on every trade is an obvious recipe for most to lose. Yes they still come on boards like this to tell us all of their successes - over and over again!
(I also was not referring to your post with mine in any way)
My primary area of concern is people directly selling to buy back later. Which lots of people do. They do directly drive the share price down in an attempt to play a game vs market makers. Leveraged or not. Long term, meh. Short term, annoying.
I got offered 14p this morning but knew it was going to drop because I couldn't sell any significant quantities. I expect a rise this afternoon because of fundamentals. It's been a loooong time since fundamentals had any impact on this share price. As people start to believe it is not going down, but is actually likely to go up. They will see the big seller is no longer around and start to add. The expectation of Eskom will certainly help.
Maybe I'm just naive eh, trying to look at human emotion and behaviour combined with fundamentals as drivers for share price movements more than just charts. I dunno. I've played poker for a living for a while, so I'm certainly no stranger to gambling, but I won't use leveraged spread bet positions in a non zero sum game, that sounds dumb to me. Obv poker has rake that you need to overcome.
But better that than fighting a machine designed specifically to extract money from you. Most people lose money playing poker too. Some convince themselves they are winning when they are not. Others may move to spread betting or other forms of gambling so they don't have to look the person taking their money in the eyes.
I'm not familiar with investing.com, but it allows screenshot. You can see here what I meant in previous post: https://invst.ly/ropqq (sorry for crappy graphic, usually use other software but its not on this computer).
Firstly, I wouldn't personally ever recommend trading for someone who's not attempted to study it first. IG and other platforms are transparent that over 70% of accounts lose money. Anyone contemplating trading should first open a dummy account and practice & master a few techniques. Then, I'd advise applying these techniques towards regular investing. Not to trade, but to time a buy-in. That can still guide a good decision and save money (e.g.not buying in on a volume drop that could signify an SP spike).
@Introv, your point on commission fees doesnt apply to trading, but trading platforms don't use these. Rather, spreads are often widened, so fees are indirect. Same principle, but slightly different and more transparent on the trade. Generally speaking, you'll find that volume is therefore essential to trading as volume helps to tighten the spread rate and therefore reduce these indirect fees (hence earlier point on how drop off in volume can be indicator of selling pressure).
Anyway, just because some people do it certainly should not mean that anyone should try it. That's a quick way of becoming a negative statistic! Find a way that works for you and stick to it. In these days of low interest rates, even 5% a year is great if you can maintain it across a growing portfolio
I hear all these people claiming great success on their trades and I can't help feeling little pangs of jealousy. Am I doing it wrong? I certainly could have sold a couple of times at 15p recently, and added to my holding lower, however every time it happens becomes closer to the last time it will happen. I've tried it (very) small scale before on this and other shares then ended up buying back in higher, or making so little and losing focus of the long game, that I would have been better leaving well alone.
Then the poker play in me considers this is absolutely not a zero sum game. Buying and holding is as close to zero sum as I can get, supported by research and a long term view to shoot for profit.
If I am paying for every trade, and the spread is consuming some of the money then traders are playing very far from a zero sum game, against people that have the ability to set and control the buy and sell price to ensure they make a significant profit on every trade and manipulate the share price against the people wishing to play with them.
And so I settle myself that, really, the vast majority of people that consider themselves profitable while trading are almost certainly losing money overall, no matter how many small wins they get. They gloat about the victories to reassure themselves of their strategy. Probably.
I mean the simple maths above clearly supports the fact most must lose money on every trade as the Market Makers are making money on the very same trade, right? Money is leaving the system into MM and broker hands.