Page 44 - Trading #101 Course – Part One: Trading Basics

TRADING #101 COURSE – PART ONE: TRADING BASICS /2017-10-06

Table 6.5 Top 10 List of Largest Intraday Point Swings in the Dow Jones Industrial
Average (DJIA)

Rank Date Close Day High Day Low Point Net
Swing Change
in Points
1 10-10-2008/Fri. 8,451.19 8,901.28 7,882.51 1,018.77 –128.00
2 05-06-2010/Thurs. 10,520.32 10,879.76 9,869.62 1,010.14 –347.80
3 10-13-2008/Mon. 9,387.61 9,427.99 8,462.18 965.81 +936.42
4 11-13-2008/Thurs. 8,835.25 8,876.59 7,965.42 911.17 +552.59
5 10-28-2008/Tues. 9,065.12 9,082.08 8,174.73 907.35 +889.35
6 10-09-2008/Thurs. 8,579.19 9,448.14 8,579.19 868.95 –678.91
7 10-16-2008/Thurs. 8,979.26 9,013.27 8,197.67 815.60 +401.35
8 10-06-2008/Mon. 9,955.50 10,322.76 9,525.32 797.44 –369.88
9 10-15-2008/Wed. 8,577.91 9,308.76 8,530.12 778.64 –733.08
10 09-29-2008/Mon. 10,365.45 11,139.94 10,365.45 774.49 –777.68
Information on this table is excerpted from the following link:
http://en.wikipedia.org/wiki/List_of_largest_daily_changes_in_the_Dow_Jones_Industrial_Average.

How Can the Bid and Ask, Spreads, Bad Fills and Slippage Affect Your Profits?
These terms bid, ask, spreads, fills, and slippage are interconnected in that they can
affect your profitability at the end of the day. In reading blogs on trading websites, you
will no doubt see lots of conversation about all the above. Accusations can abound
towards brokers for providing bad fills and that the spreads are too wide. And others
will tell you that slippage can kill your profits.

What everyone is really talking about is the bid and the ask and how it translates into
your profitability (or lack thereof) at the end of the day, or week, or month or year.

Basic definitions:

• Bid and Ask. The bid price is the highest price that a buyer, or
bidder, is willing to pay for a good. In bid and ask, the bid price
stands in contrast to the ask price. The ask price is the price a
seller of a good is willing to accept for that particular good.

• Spread. The difference between the bid and ask price is called
the bid/ask spread. The size of the spread from one asset to

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