Shares, Stocks, Options etc

formulaonefan

Hello All,

For the next month or two I'm planning to learn more about share (also called stock?) trading and then maybe after that I would like to invest and start share trading. Could someone point me to best online articles for beginners about it please?

I did lots of google but there are loads of information. I'm primarily looking for information on types of trading I can do. For example: regular share trading (you buy and sell shares), Options trading (also interested in buying and selling on index points), intraday trading etc.

I would like to do share trading on a daily basis so probably buy and sell shares number of times the same day. I would be very happy if I earn £50-£100 a day with an investment of £3000.

I saw several online share dealing website and short-listed
E*Trade, Self-trade, iii, share centre, Hoodless Brennan (I heared they are stopping online trade?) etc. Any recommendation on those.

Can you please share your experience, advice, information etc.

thanks

tradetime

You might want to start by looking at this site, I cannot vouch for it personally but mention it for two reasons,
1.) He gets mentioned a lot on here in response to people looking at this type of thing
2.) With such a low starting capital, to have any chance of making any sort of money you would have to be highly leveraged, of course that also means you could go broke very quickly.
As to the brokers you have mentioned, and the idea you have laid out, in my opinion all of them are totally unsuitable for daytrading

Another quick link.

formulaonefan

tradetime wrote: »

You might want to start by looking at this site, I cannot vouch for it personally but mention it for two reasons,
1.) He gets mentioned a lot on here in response to people looking at this type of thing
2.) With such a low starting capital, to have any chance of making any sort of money you would have to be highly leveraged, of course that also means you could go broke very quickly.
As to the brokers you have mentioned, and the idea you have laid out, in my opinion all of them are totally unsuitable for daytrading

Another quick link.

Thanks for the info. What do you think about spread betting? Is it worth having a go?

Also is it true profit we make from spread betting is tax free?

CLAPTON

I would suggest you start with a 'fantasy' trading system first and see how you get on before you spend your real money.

there must be very very very few people who make 50-100 per day starting with 3,000 (assuming 250 days per year thats a profit of 12,500 - 25,000 per annum).

Jake'sGran

You might find what you are looking for on Share.com. They have an easy fantasy system. Once you become a customer you get regular emails about their recommended stocks.

[Deleted User]

I have seen several people go completely broke via spead betting. On one course people were asked what they were using for starting capital and the common answer was redundancy or life savings. Those same people were active on a share trading site and true to form they made money at first so got over confident and one by one they dropped out because of massive losses. Some lost their house and more. On £3000 I would suggest that you aim for a few £ per day and that you start off by trading pence. You may very well find that many shares don`t move enough on a day so then try the dow. That will teach you loads but always always place a stop loss in place. Movements in the dow can be very very fast but it goes through whole cycles in one day at times

Paper trading is not the same because you know that you aren`t trading real money

I cut my teeth by dow trading via finspreads and at the time you were allowed to learn by trading in pence. I also had full realtime charting facilities, which cost me a lot of money

Not many people succeed

tradetime

formulaonefan wrote: »

Thanks for the info. What do you think about spread betting? Is it worth having a go?

Also is it true profit we make from spread betting is tax free?

To be honest I know very little about spreadbetting apart from the fact that it is tax free, yes. I would assume to some degree the principle is the same since the market is the market. Perhaps someone else can comment on that. I keep meaning to try it but never quite get round to it.
I would totally agree with CLAPTON on both points, you should first have developed a trading style or system and thoroughly tested it before going live, even then you would proceed with caution as paper trading / fantasy trading is very different from money at risk. I would also agree that with a £3,000 account, other than in a spreadbetting arena I do not believe your targets are anywhere near realistic, that is something like 8-16% per week, week in week out.

I would tend to shoot for much lower target by trying to trade over a longer timeframe such as a few days or weeks, daytrading is very dog eat dog.

You should understand all short term trading is a zero sum game, that is to say you make your money by taking it from others. It is fairly well accepted from numerous studies that 85%+ fail in attempting this, and you can bet the remaining 15% are very well capitalized and very well equipped for what they are doing

savemoney

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hens00

Jake'sGran wrote: »

You might find what you are looking for on Share.com. They have an easy fantasy system. Once you become a customer you get regular emails about their recommended stocks.

I use Share too and think they're pretty good and would recommend them. The practice account is fantastic and a good way to place practice trades whilst learning the market. My practice account has better returns than my real account though :rolleyes:

financialspreadbetting

Spread betting is called a 'leveraged' product for a reason. Whilst you can lever your upside, you need to be really careful because you are also leveraging your downside. Get some good education first. Understand the leverage proposition. And follow the two golden rules:
1. Never gamble more than you can afford to lose.
2. Always, always, always use stop losses. Guaranteed stop losses are even better....

Hope that helps.