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General investing questions, newbie queries and thoughts megathread General investing questions, newbie queries and thoughts megathread

06-29-2012 , 04:30 AM
Is it possible to buy when something reaches a certain price, but not before.

Currently if I put a limit order to buy at 50, then if the price is 45 it will execute the order (logically it thinks, well if he wanted to buy at 50 he'd want to buy at 45)

How do I set up a trade so that if the price is currently 45, the system waits until it goes above 50 before executing a buy.
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06-29-2012 , 07:56 AM
Quote:
Originally Posted by BluffingX
Is it possible to buy when something reaches a certain price, but not before.

Currently if I put a limit order to buy at 50, then if the price is 45 it will execute the order (logically it thinks, well if he wanted to buy at 50 he'd want to buy at 45)

How do I set up a trade so that if the price is currently 45, the system waits until it goes above 50 before executing a buy.
In order to do something like this, you need to have the ability to setup triggers.

For example, Ameritrade lets you setup triggers that will then place an order. So you'd put a trigger in place that says when the price of X reaches $50, create market buy order.

But who in their right mind would rather buy at $50 instead of $45?!
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06-29-2012 , 08:16 AM
Momentum investors
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06-29-2012 , 08:59 AM
Quote:
Originally Posted by BluffingX
Is it possible to buy when something reaches a certain price, but not before.

Currently if I put a limit order to buy at 50, then if the price is 45 it will execute the order (logically it thinks, well if he wanted to buy at 50 he'd want to buy at 45)

How do I set up a trade so that if the price is currently 45, the system waits until it goes above 50 before executing a buy.
You want to put in a "buy stop" order in the type section.
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06-29-2012 , 10:13 AM
Quote:
Originally Posted by Ron Burgundy
If you put in a market order a weird # of shares, does that affect the price you'd be able to buy at? For example, if I buy 100 shares of ABC stock and someone else buys 133 shares of ABC stock at the exact same time, would the person buying the 133 shares end up paying a higher price per share and/or waiting longer for the order to go through?
No. Buying in round lots (100 shares) is an artifact of the old days. It does not matter if you buy 3 or 300.
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07-14-2012 , 12:40 PM
Anyone know of a screener that can screen for average ROE over 5 or 10 years? Also, it would be nice if it screened by industry too.
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07-14-2012 , 06:42 PM
Quote:
Originally Posted by PNHH
I have a question regarding how to interpret bid-ask spreads in forward rates. Take this EUR USD forward rate for instance:

http://www.forexpros.com/currencies/...-forward-rates

How do I interpret eg. the bid-ask spread for the 3y forward:

"EURUSD 3Y FWD 165.0000 180.0000"

What do these numbers mean; ie. how do they relate to the current rate of 1.2692?

On another note, is there more of a "go to" place for currency forward rate (this was just a random one off Google).

Thx
Bump
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07-14-2012 , 09:40 PM
Quote:
Originally Posted by Ron Burgundy
If you put in a market order a weird # of shares, does that affect the price you'd be able to buy at? For example, if I buy 100 shares of ABC stock and someone else buys 133 shares of ABC stock at the exact same time, would the person buying the 133 shares end up paying a higher price per share and/or waiting longer for the order to go through?
The other answer of no is both correct, but possibly not.

In the days old, round lots of 100 were just easier to move back and forth on the trading floor. Most people didn't part with very small numbers of shares it just wasn't worth keeping track of. Back in the old days, yes the price could be different.

In todays computer age and era of billions of shares in liquidity of the high volume stocks, you will get them all at the price you want.

HOWEVER - if you are dealing with a low volume stock it is entirely possible not all would get sold or bought at the same time and price. To prevent that though you would need to put in an AON order type - All Or None.
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07-16-2012 , 01:03 PM
Dunno if this is worthy of a thread or if it even belongs in BFI, so figures this thread was a smooth tradeoff... (mods, feel free to move it to a better place, if this isn't optimal):

Cliffs at the bottom.

I need to calculate the value of a stand-alone project, an offshore wind park. My main issue is figuring out which rate of return to discount the cash flows with. The CAPM is the only methodology I really know of, but it seems to have several problems:

- The fact that is has been empirically disqualified by a lot of people and has a ton of assumptions about return, risk etc. that fail the "real life" test.

- Even if my first point wasn't an issue, the value of a wind park doesn't have a significant correlation with the stock market (which the CAPM is based on), so figuring out some beta-value doesn't seem logical to me. It could easily be incredibly risky and have a lot of potential for being -NPV, but still only require a very low return according to the CAPM due to a very low correlation with the market.

- Even if I decided that a beta measure was the way to go, it would be pretty hard to come by a reliable one. Sure, I could do a regression of comparable listed companies' correlation with the market, but those companies would have several projects, which means their beta wouldn't represent one individual project.

- I guess I could do a bottom-up analysis of every single component in the budget and figure out the individual beta with which I could do a weighted average, but that seems pretty far fetched.


CLIFFS: How would you guys figure out which rate of return you would require for an investment in an offshore wind park without just using your hunch/experience etc.? Basically an alternative to the CAPM.

Any help/links is very appreciated!

Last edited by PNHH; 07-16-2012 at 01:09 PM.
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07-16-2012 , 01:19 PM
I don't think capm was "disqualified" so much as incomplete. We have yet to see a model that stays intact throughout a financial/market crisis.

I wouldn't know an alternative, but would it be possible to find use your own company's average ROR on projects and a 10 year treasury (or something similar) as the MARR, and take that approach to figure out the value of the wind farm project?
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07-16-2012 , 02:05 PM
Quote:
Originally Posted by PNHH
Bump
They are forward points

http://www.investopedia.com/terms/f/...#axzz20oHefiQk
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07-16-2012 , 05:30 PM
Quote:
Originally Posted by oofRome
I wouldn't know an alternative, but would it be possible to find use your own company's average ROR on projects and a 10 year treasury (or something similar) as the MARR, and take that approach to figure out the value of the wind farm project?
It might, but I think I need some more "academic" reasoning to back it up. I got a suggestion of just figuring out what the required rate of return is for somewhat comparable assets and then average that, even though that method is also relatively "un-academic"...

Quote:
Originally Posted by DOOM@ALL_CAPS
Thx
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07-16-2012 , 05:49 PM
Quote:
Originally Posted by PNHH
It might, but I think I need some more "academic" reasoning to back it up.
sick burn...
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07-16-2012 , 06:00 PM
Quote:
Originally Posted by oofRome
sick burn...
Lol, didn't mean it like that. This is for a thesis (which is why I was unsure if it was ok to post here), so they want a bunch of arguments and references as to why I choose XYZ. Another problem, a big one, concerning your suggestion is that the industry is very new, so there isn't really any historic data to use.
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07-17-2012 , 09:00 AM
Quote:
Originally Posted by DOOM@ALL_CAPS
Just to make sure, I understand this correctly:

This moment the EUR/USD is 1.2279.

Name Bid Ask Avg. (avg isn't quoted, my calc)
1W FWD 0.1300 0.1800 0.1550
2W FWD 0.3600 0.4600 0.4100
3W FWD 0.6600 0.7800 0.7200
1M FWD 1.2000 1.3000 1.25

Does this mean that if I were to draw a forward curve, I would have these points:

Time rate
0 1.2279
1W 1.2279 + .001550 =1.22945
2W 1.232
3W 1.235
1M 1.240?

My problem is that I find it weird that the market expects the USD to depreciate relative to the EUR, all things considered (Euro crisis)? Or is this because of the uncovered interest parity relationship and perhaps the US interest rate being higher?

Or am I just interpreting forward points the wrong way (should I perhaps subtract them instead?)?

Last edited by PNHH; 07-17-2012 at 09:06 AM.
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07-21-2012 , 07:13 AM
Started trading in a prop firm recently, mainly really short-term scalping. One thing I find strange is that all we have to analyse our trades is a simple excel sheet. It just seems strange and inadequate after using HM and PT for years. Is there any database software in any way comparable to those for trading?
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07-22-2012 , 07:34 PM
Whats the best to compare 4 index funds over a certain time period? I'm looking to sell whichever is the up the most percentage wise.
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07-23-2012 , 06:27 AM
Quote:
Originally Posted by fluorescenthippo
Whats the best to compare 4 index funds over a certain time period? I'm looking to sell whichever is the up the most percentage wise.
Unless you bought them at the same time, theres no reason.

But to answer your question, use Morningstars Growth of 10K chart, given you were reinvesting dividends/capital gains.
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07-23-2012 , 11:34 AM
Quote:
Originally Posted by nuclear500
Unless you bought them at the same time, theres no reason.

But to answer your question, use Morningstars Growth of 10K chart, given you were reinvesting dividends/capital gains.
why not? how is this different than rebalancing, except instead of buying low and selling high im just selling high.
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07-24-2012 , 04:53 AM
Would you guys convert some of your saving in EUR to some other currency? And if yes, which one?
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07-24-2012 , 10:05 AM
Quote:
Originally Posted by fluorescenthippo
why not? how is this different than rebalancing, except instead of buying low and selling high im just selling high.
I took it for granted you meant 4 similar index funds rather than just 4 random funds. Didn't read your post correctly.
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08-03-2012 , 08:25 AM
Where would you suggest newbies to invest in?

I am new trying to look for some profit.
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08-03-2012 , 08:34 AM
Welcome to the "look for profit" club. If you find somewhere thats guaranteed, please share.
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08-03-2012 , 09:51 AM
Sorry if I said something wrong.

But is there anyways for beginners to start or something?
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08-03-2012 , 10:22 AM
Quote:
Originally Posted by Tarkyo
Sorry if I said something wrong.

But is there anyways for beginners to start or something?
Besides your stated goal, that *everyone* has, what do you want to invest for?
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