On the previous topics Stock Broker went through different trends and which do look promising and which do look dangerous to invest. Now we have found the company’s stocks to add into your following list and it’s time look how are the trading numbers.
The Spreads – we did mention them in our How To Read A Stock Market Report page and they are price difference between “Offer” (to buy) and “Bid” (to sell). The Offer is always higher than Bid but the difference shouldn’t be more than 0.1 or the price would be by our Stock Broker’s opinion too high but it always depends on you and on the stock. When you are going to buy the stock for long time and it is worst to buy the higher spread has less weight. We still recommend to do some calculations and think it trough to put some limits on spreads size.
Also you need to calculate out the cost of your share trade before doing any investing or trading. That includes all commissions and fees that are applied when you’ll buy or sell or after doing both with your stock. There is always a commission from your online trading platform and the average price is between 10 and 12 pounds. The U.K. markets has a stamp duty (0.5 %). For third you should add the spread price.
In short, you would need to calculate out buying and selling cost in the same time to understand how much needs to grow your stock before you can sell them back with some profit. This calculation should give you some ideas for how long you’ll keep the shares at least and what would be the targets.
To do trading the selling and buying price will be mostly the same as quoted on the stock market report and this will be so while you are buying and selling stock in size set by the stock market. The official name for this size is NMS (normal market size) take a look at the picture above. This is the amount of shares guarantee to sell or to buy within the market price and when you’ll buy over the normal market size the buying price will be higher than for example on this report 160.35 and it will be reverse with selling over the NMS amount then the selling price will be lower than 160.25. Usually the NMS amount is enough to do your tradings but be careful with small companies they can have the amount to be quite small and then it is easy to become different from the market price.
Talking about the trading hours or the stock market open hours. They are very important to know because you should do all your trading while the market is open. Do NOT buy or sell stock outside the trading hours. Also be very careful with the first hours the spread size are not set to general level and they can be very high on that moment. Having high spread size will make your stock investing price higher and more expensive.