Trading.

puk999

Bantex wrote: »

Isn't FTSI around the same as it was 10 years ago. Allowing for inflation that is a pretty hefty loss.

The FTSE pays dividends so that adds to the return.

Bantex_2

puk999 wrote: »

The FTSE pays dividends so that adds to the return.

Does a trader get to take the dividends though?

bowlhead99

Bantex wrote: »

Does a trader get to take the dividends though?

Yes. You have either a real or a virtual exposure to the assets so if the assets pay out a proportion of their value as cash on ex-div day you will benefit from the cash if you have the real assets or have your position and stop losses etc adjusted to account for it if you have a virtual one.

jabba42

Sounds like a lot of people here have had a dabble and lost. I am not afraid to admit I have lost tons.

My brother was shorting the ftse in 2008, he was 130k up, then lost it all again.

I was in a used car dealership ( where I also lost money) and a guy came in to sell his 2 jags, no it was not John Prescott, it was a guy who let a EUR-USD run out of control. He was an airline pilot so I guess he will get it back but that was 100k.

Day trading sucks, I am in the internet biz and you should see the commissions for getting someone to sign up for a live trading account. It is lots because they know that in all likelihood they are going to lose everything.

ChristopherM87

What was the successful ironman guy doing?

brendon

Bantex wrote: »

Does a trader get to take the dividends though?

Imagine that a trader didn't get dividends. Why on earth would he buy the stock? What is the share price for? It's a valuation on how much those dividends -- as income -- are worth. It's not just the valuation that day traders have traded it to for the sake of it. There is real value there.

If I said I want to pay you £10 every year for the rest of your life. How much would you pay for that? Perhaps you'd pay 20 times that. So you'll give me £200 now and I'll give you £10 per year for the rest of your life. That, roughly speaking, it what equity and bond investments are (bonds are over a finite amount of time, equity lasts forever).

If instead I said here's a bunch of wheat. You can buy it for £200. Once you've eaten it, it's gone. That's what currency and commodities are. They are important, but they are not investments. You might need currency, to buy foreign assets. And you might need commodities, such as wheat for food or gold for jewellery. But, if you are just speculating on the way a chart will go, that's nothing more than gambling.

IronWolf

Bantex wrote: »

Isn't FTSI around the same as it was 10 years ago. Allowing for inflation that is a pretty hefty loss.

Holding the FTSE All-share would have doubled your money from 10 years ago to today.

Bantex_2

brendon wrote: »

Imagine that a trader didn't get dividends. Why on earth would he buy the stock? What is the share price for? It's a valuation on how much those dividends -- as income -- are worth. It's not just the valuation that day traders have traded it to for the sake of it. There is real value there.

If I said I want to pay you £10 every year for the rest of your life. How much would you pay for that? Perhaps you'd pay 20 times that. So you'll give me £200 now and I'll give you £10 per year for the rest of your life. That, roughly speaking, it what equity and bond investments are (bonds are over a finite amount of time, equity lasts forever).

If instead I said here's a bunch of wheat. You can buy it for £200. Once you've eaten it, it's gone. That's what currency and commodities are. They are important, but they are not investments. You might need currency, to buy foreign assets. And you might need commodities, such as wheat for food or gold for jewellery. But, if you are just speculating on the way a chart will go, that's nothing more than gambling.

I do know one guy who is involved in high speed trading, he says that that they only hold a share for seconds before selling (at hopefully a higher price than than they paid). Cannot see much dividend income from that but he earns a packet. Would this be a totally different type of trading to what is being discussed here?

spender

Could somebody please explain in plain English what type of trading they were doing on this programme, or indeed a quick definition of all types of trading.

I thought they were forex trading on the programme but it appears there were different types of trades. What was the man who had the Porshe trading, he had all the different screens!

pinpin

spender wrote: »

Could somebody please explain in plain English what type of trading they were doing on this programme,What was the man who had the Porshe trading, he had all the different screens!

Going off memory, I think he was trading currency futures? He had a good few screens that might suggest he was trading multiple instruments at a time and had to keep an eye on various charts as well as maybe some 'Depth of market' information?
He pointed at his charts and spoke of trends, so he looked to be using technical analysis to at least influence his trading desicions.

Should be said that there is some doubt over exactly what his 'story' is. Is he really a trader?(rathet than just pretending to be one?) Or is he just a 'vendor'? The show portrayed him as a successful home trader rather than someone who aggressively markets and sells trading systems which appears to be the case.

It's easier to make money by selling dreams as opposed to beating the market

Some make lots of money. Most lost their savings. A family member of mine quit whilst he was ahead after making a hundred K or so. He decided he'd been 'lucky' and nothing more.