Understanding returns for a beginner

Jonak1979

Newbie
1 0
Hello,

I am very new to this I'm struggling to understand how my return was about breaking even, even though I bought the share at £10 lower than the price per share was trading at,

Example - yesterday I bought shares in boeing when the price was £169 per share, today when I looked the share price had increased to £176 per share but my returns were showing breaking even at zero, I can't u derstand why this is so, does anyone have a simple answer please?
 

tomorton

Legendary member
8,132 1,215
What comes to mind right away is you need to allow for the spread. This is the difference between what you have to pay the broker to buy the share and what the broker will offer you if you want to sell it back: shares are always quoted at two prices.

Check with different brokers to see how wide their spreads normally are on this share and similar sized companies' shares. Brokers are in competition so some will offer a better deal than others.

The spread your figures suggest is very wide. What the hell is that?
 

Akinozragore

Active member
122 8
I think that break-evenness is first of all the ability to distribute risks, and this is important regardless of the strategy used, etc. And here we need to keep in mind that most traders do not seek to earn a lot but once. Each of us strives to make a profit all the time and close every trading session with a stable plus. I want to advise you to study risk management in detail so that you understand that losses sometimes happen too, but this does not interfere with your capital at all, if you understand what to do in such a situation and can handle it in a matter of minutes.
I hope that you will deal with this as soon as possible and become a trader with a good income and a full understanding of the market.
 
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