We have lots of experienced traders on MoneyAM who would be glad to help if you have any trading questions.

All shares are given a notional value when they are first issued, which never changes. What you pay for the share is the traded price not the notional price.

You bought ordinary shares of 0.1p for for the amount they traded at of 1.75p

The consolidated shares are just the notional price being increased, to reduce the amount of shares in issue.

I was looking at the share price, and in dec 03 it was trading between 30-40p so I don't understand how you paid 1.75p

You should expect the trade price to change in line with the change in shares in issue.

For anyone who needed proof of why looking at the buys & sells trades are misleading, take a look at TGM.

Currently only two trades. The second one is recorded as a sell because of the price. I infact bought 582 shares @ 149.50 for my long term portfolio. I saw the price my broker was prepared to sell the shares for and I couldn't refuse.

I suspect the broker had some shares he wanted to sell, and thats why I got such a good price. Prices are dictated a lot of the time by how much stock the broker has available, within the bid & offer prices which are dictated by the MM.

Anyone suggest a good book I could buy that would show me how to use graphs properly. I intend to go on a one day course in the near future and feel it would be beneficial if I had a basic understanding, when it come to reading resistance points in realtion to volume and price.
Thanks in advance.

(New user) How do I find last reference to a Company from the very long list in Investors Room? Is there an index ? eg today I looked for Vislink.

Graandma,

If you click on the Search button at the top you will be given a number of options to search for.

Regards

Ian

Thanks for prompt reply. xx Grandma

You may also find the EPIC box is case sensitive!

When VLK at last found, found the original title no longer appropriate. Can it be changed, or does one start anather thread?

refer to CGT rule- about last in first out(share dealing),say if i made 3 different lots of buying "xyz" as following 1) apr/03 100k cost 3,000; 2) may/03 150k cost 4,800; 3) Dec/03 250k cost 7,375. And i sold 300k shares
at Feb/04, i understand that i sold the 250k bought on dec/03 plus 50k from may/03 `s stuff ,but not know the cost base of the block sold.Is it 7,375+
1600= 8,975 or the pooling of all three transctions and take a avg @price
*300k; =9,105 ? Please any one know the answer.

You take the actual cost of the the shares. You would actually break the sale into 2 transactions, prorata and then put it againt the purchases. The reason for breaking it down is incase you have taper relief (or what was in place prior to taper relief) to claim etc.

Also the reason for breaking down the deals is in case you purchase the shares back within 30 days then, then it can become very complicated!

You work the cost out from the specific shares sold - hence you are selling 250K bought at for 7375 and 50K bought for 1600 hence 8,975 - the cost always stays with the specific share

little woman & Fundamentalist; thankyou for the help,very much appreciated.
rgds SBR

Cladisporium & LW, re Cytomyx,

LW, Cytomyx wasn't trading at 30-40p in December, you are looking at a chart that has already adjusted for the 1 for 25 consolidation on 13/01/04. Today's closing price of 32p is equivalent to 1.28p.

1.75p purchase price late Dec means you are in at an equivalent of 43.75p now.

Thanks dominic - I wondering about the difference!

The trade example in post 265 isn't strictly a VWAP trade, it's a trade that has been executed in parts and then booked out to the client, although it demonstrates how VWAP is calculated. A VWAP trade (marked VW) is where a broker is given an instruction to execute a trade against a VWAP benchmark for a given period and a full explanation can be found here.


http://www.moneyam.com/TradersRoom/ShowPostList?fID=1&tID=2057

Thanks for the clarification dominic - and I hadnt been aware of how VW was used for benchmarking until I read the link you've just posted. Very informative.

Nice article on the IG website, btw.

washlander

try "TECHNICAL ANALYSIS OF THE FINANCIAL MARKETS" by john j murphy. had it for Christmas. very readable as well as informative. hope that helps. im sure MAM has a bookshop...other sites do.

Thanks supernod

What is a protected transaction in level 11.

G, yes I was asked to review the L2 dealer, which I was happy to do. There's a possibility that I'll have an opportunity shortly to review all three DMA platforms simultaneously shortly back to back and compare and contrast. Looking forward to it. A little healthy competition never did anybody any harm.