Lesson 3 for today12 Oct 2023 08:42
If a SP has moved up say 5% in the trading day can you make £'s.
Answer is NO!
Why not?
Spreads, between the buy and sell SP when buying and selling (BOTH WAYS EACH TIME).
Order size, also has effect on the selling or buying SP.
Trading commissions, also eat into any potential profit.
And, not forgetting to make worthwile money takes a LOT of money, requiring big volume of shares.
Market makers often only allow purchases from PI's not sales for instance, and drop the SP considerably on large sell orders.
Risk factor: e.g, Risk £10k to make £300 when the potential downside could be -50% even in the same trading session.
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