Hi all, I am new to spa3 investor and I think I more or less have my head around it. Enjoying the ride so far despite a little drawdown!
I have a simple question that I hope others might be able to assist with. I seem to be missing some decent percentage increases on new buys just because of the morning spike. Typically I’m only able to get in at around 10:30am due to other life priorities. Is there any advice on setting limit orders the night before to manage this? How much above the buy price should I go to not miss out?
Any advice on what others do is welcome!
As long as the time you buy or sell is consistent with what you have documented in your investment plan, then you should not miss out. If you want to be filled unconditionally at the open, then you would put a price way above the closing price the night the day before and you would pay the averaged opening price at the match off in the first 10 minutes. This can be dangerous if there are not too many sellers. A moderate way would be to put the closing price or thereabouts of the night before for the opening matchoff and if you are unsuccessful, then buy/sell as you would at around your 10.30am time slot.
I too have noticed that over the last couple of months, on up days, ASX has a morning spike, peaks 10:30-11:30 then drifts lower for the rest of the day (not always but a lot). I was buying and selling on close (or near to) as was recommended originally (somewhere along the way that changed to on open or half an hour after open). Due to the recent behaviour of the ASX described above I have been doing my sells 10:30 - 11 if there is a spike and buys at the end of the day. This has been working for me but the character of the ASX may change. I’ll change when it does.
Thanks Phillip and Nick, some useful advice here. Perhaps a strategy might be to combine both suggestions. i.e. set a limit order at around the close price the day before and then if that doesn’t work, sell at market price as soon as possible after open or buy at market price close to end of the day… cheers.