Stay at home mum - could I be a day trader?

Thrugelmir

superhanzzz77 wrote: »

I nearly doubled my money last year - and i've only been doing this for 3

FTSE 100 Jan 2009 - 4434
2010 - 5412
2011 - 6009

Easy in a rising market. Picking individual stocks in a flat market is a lot harder.

Thrugelmir

superhanzzz77 wrote: »

The stock market has gone up 10 - 15% per year historically - this surely can't be compared directly to gambling

If that's the case I've missed out somewhere.

Majority of return made on holding shares longer term is generated by dividend reinvestment.

sabretoothtigger

Average gain for FTSE in the last 27 years has been 6.72% per annum
excluding dividends, costs, taxes, and inflation losses

superhanzzz77

Thrugelmir wrote: »

FTSE 100 Jan 2009 - 4434
2010 - 5412
2011 - 6009

Easy in a rising market. Picking individual stocks in a flat market is a lot harder.

100% agree - that's why I'd always recommend respecting stops and being willing to pull out of stocks and back into cash, gold or other safer investments

I certainly don't expect to have as much success as I did last year again in a hurry

With regards to historic returns - again I agree that dividends play a large role in these figures and I didn't look them up - but it's well known that the stock market on average outperforms Cash

Thrugelmir

superhanzzz77 wrote: »

but it's well known that the stock market on average outperforms Cash

......and I personally would prefer to own the bookies than bet on the horses themselves.

padington

Yes you can do it. Dont lose your 'main' income though and you can do it tax free by spreadbetting. FXCM is a good firm to use and they have a mico account option. Follow just one 'horse' and learn everything there is to know about it. Silver is a good one. This blog will help you learn about silver and its by someone that day trades via spreadbetting himself.

http://preciousmetalsnews.blogspot.com/

You need to be pretty on it though to do well but it is possible from what i believe. Just be aware that you can lose whatever money you deposit.

Really if you know what you're doing spreadbetting is the best way to play the stock market full stop if the truth was known because of the tax free implications.

[Deleted User]

op, yes invest in shares but pick your moment. Start with a bit of TA and learn some basics like, trend, resistance, support. Pick a large ftse 100 company that won`t disappear overnight and if you want to invest for future income, then look at yield. Wise decision but you can learn lots now while the children are young and later, who knows

ps, women can make very good investors and traders

wriggly

I'd suggest reading up a lot before committing real money. My top recommendation, because after reading it, you'll never want to day-trade, but you'll still have had an entertaining read, is:

http://www.amazon.co.uk/Dumb-Money-Confessions-Day-Trader/dp/0375503889/

gadgetmind

I've been following this guy's blog for a few years.

http://runningcapital.co.uk/

I wish he'd update more often but I wish even harder that I'd had the guts to mirror his trades.

peterg1965

OK, can I add my view.

I trade in Shares on a regular basis with the aim of making a reasonable, yet modest, profit. I have a few ground rules which I attempt to stick to, I will 'day trade' to make a profit, but more realistically I trade about 6/7 times a month to take my profit and to reinvest. Would I do it to make a living? No, unless I had a considerable sum of money to play with (>£200K). You need to be 'tuned in' to what the market reacts to, Stock Exchanges do not like surprises and react negatively to them. An example is the Libyan conflict or the Japan Earthquake/Tsunami/Nuclear incident. However, where there is surprise there is usually opportunity, if the market dips markedly, generally it will recover. My grounds rules include:

- read the financial press to get a feel for what is happening, the markets HATE surprises.
- stick to FTSE 100 companies
- Buy on a low, or at least when the market takes a bit of a downturn
- Do not sell for a loss, even if it take months to recoup losses - not necessarily a hard and fast 'rule' this one.
- Do not be greedy
- Avoid share forums/bulletin board (like iii), they are completely full of rubbish)
- trust your instincts
- be wary of (but not necessarily avoid) banks and miners
- get a decent online share trader account
- spread the risk, ie. do not lump all your money in one Company.

I use Hargreaves Lansdown Share and Fund Account, it has an Active Trader option which means £9.95 per trade (+ 0.5% Stamp Duty). Another advantage is that you can use your Capital Gains Allowance (£10K or so) before you pay any tax.

It is really tough to make money at the moment, so I will happily take £50-£100 of profit rather than sit tight and hope the share rises further. The market is quite volatile and since January shares have bounced up and down. I generally invest a minimum of £5000 per trade, this costs me £35, so the Share needs to rise by 0.9% before you are into Profit (this includes the £9.95 to sell).

Of late, despite my 'rules' I have made some money on Barclays, RBS and ERNC. I have made about £1500 profit since December with my investment 'pot' of £28K.

Whatever you decide to do OP, good luck.