I don't want to miss shorting Aussie banks tomorrow - help

[gerbot]

Hi Experts.
I'm a newbie and have been trading while the markets are open.

But I want to short some Aussie banks on tomorrow open in the ASX.

If I want to set this bet now I know I want to 'sell' first but do I place my order as a 'stop' or 'limit' ?

Take ANZ.ax it closed at a sell price (for me) at 1971.0
A sell limit order would be 1971.1

Where as asell stop order would be priced at 1970.9

Given that I want to catch to stock and expect it to go lower not higher should I 'stop' or 'limit' ...???

My guess is 'stop' as this would catch the stock on the way down (if my guess on the stock move is correct.

Thanks in advance

 

[Jack o'Clubs]

Watch your eye. Unless there's a miracle in the meantime these are all going to gap down at the open. Which means your stop order is going to get filled at who knows what price, and if there's then a bounce (dead cat or otherwise) you'll lose money. A stop limit order would be a better option, but then you'll probably not get filled at all unless you get the level exactly right. I wouldn't put a trade on in these markets unless I was around to deal with it.

 

[LittleKnown]

Don't rush, market'l still be there lad

PS LOL at experts

 

[andycon]

Hi Experts.
I'm a newbie and have been trading while the markets are open.

But I want to short some Aussie banks on tomorrow open in the ASX.

If I want to set this bet now I know I want to 'sell' first but do I place my order as a 'stop' or 'limit' ?

Take ANZ.ax it closed at a sell price (for me) at 1971.0
A sell limit order would be 1971.1

Where as asell stop order would be priced at 1970.9

Given that I want to catch to stock and expect it to go lower not higher should I 'stop' or 'limit' ...???

My guess is 'stop' as this would catch the stock on the way down (if my guess on the stock move is correct.

Thanks in advance

Stay up late.

 

[gerbot]

Watch your eye. Unless there's a miracle in the meantime these are all going to gap down at the open. Which means your stop order is going to get filled at who knows what price, and if there's then a bounce (dead cat or otherwise) you'll lose money. A stop limit order would be a better option, but then you'll probably not get filled at all unless you get the level exactly right. I wouldn't put a trade on in these markets unless I was around to deal with it.

Cheers Jack.
Hadn't considered that my stop order might get filled much lower.

 

[gerbot]

Stay up late.

I wanted to remove the risk of becoming an 'minute trader'
Make my bet, Aussie banks going lower tomorrow and go to sleep

 

[gerbot]

Bah. I'm going for it.
Only betting a few hundred in risk here.
Gone for the stop but with trailing 100 points behind.

So hopefully my order gets placed before the carnage stops.

Of course I could be totally wrong on the next move

 

[brewski1984]

Are you gambling now or trading?

 

[gerbot]

Well I've my opions formed on the Market through research.
I'm very sure of what I think is going to happen.
Aussie property going down and bank going to suffer
Aussie carry trade going to hurt as RBA holds interest rates
Money going back to home countries
Aussie banks borrow too much overseas
Aussie stocks seen has a bet on global growth
Aussie dollar buying power really high right now

What I'm not sure of is how I trade this for Market open.
I've already done well on these bets, just looking to put more in now

 

[gerbot]

Trading.
But not 100% sure how to capitalise on my research