Day Trading

joeypesci

Has anyone had dealings with day trading? Where do you begin? I've no experience with the stock market but have been interested in day trading but haven't a clue where to begin.

Can you do it with as little as £1k to invest? I see people on YouTube using software that allows them to fill in the amount they want to buy, click buy and its done. Where do you get this type of software?

Loads of questions.

Reaper

That's really too little to start with. You can buy and sell shares easily enough. For example I am currently using X-O.

However although they are very cheap the costs still eat into your margins.

For example say you spent £500 buying shares in a single company. You can expect to pay:
£5.95 charge to X-O
£2.46 stamp duty

So in other words you have just lost 1.7% buying them. Then you are going to incur a charge when you come to sell them too. If you were planning to frequently chop and change as a day trader you can see that would soon eat into your profits. It would be worse still if you bought smaller amounts.

Also consider whether you want to hold your investments inside a stock & shares ISA. That will involve an extra admin charge too.

As an alternative first step you could consider unit trusts funds via a discount broker or an Investment Trust. They make all the investment decisions for you.

Stompa

joeypesci wrote: »

I've no experience with the stock market but have been interested in day trading but haven't a clue where to begin.

Starting off with day trading sounds like a good way of losing money fast!