Will OR want proceeds from stock market trading?

itsallover

Hi everyone,
I'm looking to start trading on the stock market in case I lose my job- its only temporary.
My question are,
1. Will I have to notify the OR that I'm now trading?
2. Will the OR take my winnings?

Thanx

curly04

if you go BR - the OR will ask for any monies to pay towards the debt

itsallover

Thanx for the response curly.
So if the trading is my sole income would I not be allowed to live on the allowance that was allowed when I filled out my SOA?

skylight

Trading stocks and shares is not a form of an employment when you have invested your own money. The OR will see your shares and anything else related to the stock markets (ETFs, Bonds etc) as assets and will take them in your bankruptcy.

Your question stated "winnings". You are not gambling. The stock market is a vehicle for investment with a view to making a profit and you can also lose all your money invested too. If you want to live off the income of your shares etc, you need a heck of a lot of shares to start with. Over the short-term this is not a way to generate a monthly income big enough to live on.

I suggest you start with a lot of research - Share Dealing for Dummies is a good one (and thats not a mickey take, it is a good book and the first one I ever bought on the subject). Research will give you a good grounding so that after your BR is finished and you are discharged you will be able to jump right in. If you buy anything before your discharge then the OR will take them all off you as assets.

andyf1980

I'm sure I read somewhere that it's not worth investing less than £2k per stock. In order to have diversity in a portfolio an absolute minimum of 6 stocks I reckon.

Spread betting is an alternative but potential losses can be enormous.

Markets are still pretty volatile so a risky proposition.