Stocks/Shares help
Discussion
TheHighlander said:
Someone was telling me to go my bank "Bank of Scotland" as you can do trading via them.
You can open a trading account with a bank - though mine was rather odd as they wouldn't let me use my own money to buy shares, they insisted on 'lending' it to me first and them taking it from my current account a few days later. Hence a small trading limit though I got it bumped up to £20K.More straightforward are registrars - just transfer the money and pay the commission - eg Equiniti, Capita. Eventually I used my bank for £20K and Computershare for the rest. It was also very easy to set up an ISA online. The websites have plenty of facts, figures and charts to aid your judgement/guesswork.
Do you want to trade or to invest, or do something in the middle.
Trading is a short term activity where you are trying to take advantage of market volatility, i.e. you're seeking to predict and exploit fairly rapid price movements. It is a zero-sum game; i.e. if you make a profit trading, someone else has made a loss. On average you'd expect to break even, until you take into account your broker fees and tax at which point it becomes clear that on average you'd expect to lose money.
Investing is a longer term activity where you buy assets in the hope that they'll pay you an income stream and appreciate in value because of some underlying, productive economic activity. On average you'll earn a return. It isn't a zero sum game. You get paid because you're providing capital to businesses and they use that to try to make a profit.
Trading is a short term activity where you are trying to take advantage of market volatility, i.e. you're seeking to predict and exploit fairly rapid price movements. It is a zero-sum game; i.e. if you make a profit trading, someone else has made a loss. On average you'd expect to break even, until you take into account your broker fees and tax at which point it becomes clear that on average you'd expect to lose money.
Investing is a longer term activity where you buy assets in the hope that they'll pay you an income stream and appreciate in value because of some underlying, productive economic activity. On average you'll earn a return. It isn't a zero sum game. You get paid because you're providing capital to businesses and they use that to try to make a profit.
I would suggest something like an IG account. You can sign up for a demo account (which works perfectly in every way, just with fake cash) and get a really good feel of how things effect the markets and where the reactions are. It is a spread betting account, so you don't buy and sell stock, you simply take positions and back you chosen market/stock to rise or fall. It might not be the kind of trading that you are looking for, but all the markets under one roof, instant buy and sell etc, it's worth having a play. (It also has the advantage of being completely tax free)
These threads always make me nervous.
'I don't know anything about trading, but would like to do it with some money I have sitting around'.
Sorry to sound harsh, but leveraged products are not a good idea for someone who isn't sure how to even set up an account in the first place. It's a sure fire way of losing money, especially with how volatile the markets are at the moment.
Look at long term investing, slow and steady wins the race, read up, find some companies you like, read up some more and diversify.
'I don't know anything about trading, but would like to do it with some money I have sitting around'.
Sorry to sound harsh, but leveraged products are not a good idea for someone who isn't sure how to even set up an account in the first place. It's a sure fire way of losing money, especially with how volatile the markets are at the moment.
Look at long term investing, slow and steady wins the race, read up, find some companies you like, read up some more and diversify.
Set yourself up in: https://www.google.co.uk/finance/portfolio?action=...
Set up a practice portfolio and see how it fares. Google will show you in great detail how much you make or lose. Much easier to accept virtual losses
If you don't already have an ISA trading account (and don't intend to use you allowance for anything else) then set up an ISA trading account (Barclays & TD-Waterhouse with do one. Others too I'm sure). That way your millions will be protected from tax
As a benchmark, see if you do better than one of the managed funds such as Fundsmith.co.uk.
Set up a practice portfolio and see how it fares. Google will show you in great detail how much you make or lose. Much easier to accept virtual losses
If you don't already have an ISA trading account (and don't intend to use you allowance for anything else) then set up an ISA trading account (Barclays & TD-Waterhouse with do one. Others too I'm sure). That way your millions will be protected from tax
As a benchmark, see if you do better than one of the managed funds such as Fundsmith.co.uk.
Greshamst said:
These threads always make me nervous.
'I don't know anything about trading, but would like to do it with some money I have sitting around'.
Sorry to sound harsh, but leveraged products are not a good idea for someone who isn't sure how to even set up an account in the first place. It's a sure fire way of losing money, especially with how volatile the markets are at the moment.
Look at long term investing, slow and steady wins the race, read up, find some companies you like, read up some more and diversify.
There's no other real way of wording it. 'I don't know anything about trading, but would like to do it with some money I have sitting around'.
Sorry to sound harsh, but leveraged products are not a good idea for someone who isn't sure how to even set up an account in the first place. It's a sure fire way of losing money, especially with how volatile the markets are at the moment.
Look at long term investing, slow and steady wins the race, read up, find some companies you like, read up some more and diversify.
Everyone had to start somewhere, I'm just looking to learn. I'm not about to go "balls deep" with £10k and just chuck it about, I juust want to learn and see where it goes.
It's something that's always interested me.
TheHighlander said:
Greshamst said:
These threads always make me nervous.
'I don't know anything about trading, but would like to do it with some money I have sitting around'.
Sorry to sound harsh, but leveraged products are not a good idea for someone who isn't sure how to even set up an account in the first place. It's a sure fire way of losing money, especially with how volatile the markets are at the moment.
Look at long term investing, slow and steady wins the race, read up, find some companies you like, read up some more and diversify.
There's no other real way of wording it. 'I don't know anything about trading, but would like to do it with some money I have sitting around'.
Sorry to sound harsh, but leveraged products are not a good idea for someone who isn't sure how to even set up an account in the first place. It's a sure fire way of losing money, especially with how volatile the markets are at the moment.
Look at long term investing, slow and steady wins the race, read up, find some companies you like, read up some more and diversify.
Everyone had to start somewhere, I'm just looking to learn. I'm not about to go "balls deep" with £10k and just chuck it about, I juust want to learn and see where it goes.
It's something that's always interested me.
If you're investing small amounts of money you need to take small companies that are high risk to make enough profits. My first stock market investment was in a small oil company who I took a gamble on, that they would make a good discovery. It didn't happen, and so I thought I'll wait until it rises and sell then. Within a short time it was down 98% on what I bought it for, and the company is effectively bankrupt now.
Another common mistake is to buy shares in a company that is down 10/20/30/80% compared to a while back. That means it's undervalued and should come back up, right? No - generally companies on a down trend will continue that way. It's also pretty dangerous to short term trade on these companies as although you can make small profits with each small high if you miss the high and get left behind the decrease is a lot more than the upsides you make. So you tend to need to make a lot more "winners" to break even for a company going down.
So it is best to get a company going up, and if you want you can short term trade on the smaller drops to try and increase your profits/ number of shares in the company. If you trade in small enough volumes you can sometimes fill in the gaps between bigger people who are trying to force the price up or down, but the question is if the profits are worth the time you use for it.
Also it takes time to see what the longer trends and how you actually do. It's very easy to make money on a rising market doing daily trading. Maybe you make 10% over a few weeks. But then the market drops 20% in a day or two and suddenly all your profits are wiped out. I had kind of this at the start of the year. Made good profits from the New Year effect, but had most of them wiped out by the collapse in January. Did well in the inbetween time, and survived the Brexit without big losses, but didn't make much big profits in the days after either due to the companies I invested in. But some people lost out on Brexit big time. So don't just practice for a week or two.
Chart analysis techniques help a lot for shorter term trading. My strategy is a combination - if I see an opportunity for short term trading to increase profits then go for it, but try and go in companies that are going up overall. Then you can wait out any bigger losses due to fluctuations in the market, reducing the chances of the company going in freefall and you losing everything. This is possible because it's not my job, so I don't "need" to make enough profits to live on.
The other thing to remember is that you may make money with your investments, but if you make 5% in a year after trading costs, but the market is up 10% in that year you have "lost" money compared to a cheap fund that tracks the market.
TheHighlander said:
There's no other real way of wording it.
Everyone had to start somewhere, I'm just looking to learn. I'm not about to go "balls deep" with £10k and just chuck it about, I juust want to learn and see where it goes.
It's something that's always interested me.
There's plenty of resources available these days from books, interviews etc. Learn from successful traders and try and absorb as much knowledge as you can about different strategies. That will give you a better approach to the markets but the bulk of it your going to have to learn the hard way, and that's by trading the markets with real money, none of this paper trading stuff. Everyone had to start somewhere, I'm just looking to learn. I'm not about to go "balls deep" with £10k and just chuck it about, I juust want to learn and see where it goes.
It's something that's always interested me.
Will take you a few years before you figure out your own strategy and become consistently profitable, that's if you haven't given up by then, won't be easy at all but if your prepared to work at it then good luck!
TheHighlander said:
Good Afternoon all,
I was wondering could someone point me in the right direction of where I can begin to learn how to trade.
Been meaning to get involved for a while and figured now is the time to do so. I have some disposable money as such.
Any advice would be much appreciated.
There are two approaches to trading:I was wondering could someone point me in the right direction of where I can begin to learn how to trade.
Been meaning to get involved for a while and figured now is the time to do so. I have some disposable money as such.
Any advice would be much appreciated.
1. Hobby. Accept that it will cost you money but enjoy the thrill of gambling, while pretending that you are doing some deep "analysis" or have some "edge" over everyone else.
2. Full time. Dedicate your waking hours to it. Put up some serious capital - say £100k min. Probably introduce some leverage. Lose it all.
Check the internet for real research into the success of novice day traders (which is what you are talking about).
They get destroyed.
They trade too often, let losers run too far, cut winners, and simply LOSE MONEY.
It really is as simple as that.
And if you still don't believe me try this for a thought...
If any old novice could start trading and routinely make money, then EVERYBODY would be doing it.
There are literally ZERO barriers to entry.
If it was an easy way to make money then you wouldn't have anyone making minimum wage flipping burgers or cleaning loos - they would be day trading.
I work in the markets, although I am not a day trader.
walm said:
There are two approaches to trading:
1. Hobby. Accept that it will cost you money but enjoy the thrill of gambling, while pretending that you are doing some deep "analysis" or have some "edge" over everyone else.
2. Full time. Dedicate your waking hours to it. Put up some serious capital - say £100k min. Probably introduce some leverage. Lose it all.
Check the internet for real research into the success of novice day traders (which is what you are talking about).
They get destroyed.
They trade too often, let losers run too far, cut winners, and simply LOSE MONEY.
It really is as simple as that.
And if you still don't believe me try this for a thought...
If any old novice could start trading and routinely make money, then EVERYBODY would be doing it.
There are literally ZERO barriers to entry.
If it was an easy way to make money then you wouldn't have anyone making minimum wage flipping burgers or cleaning loos - they would be day trading.
I work in the markets, although I am not a day trader.
Good advice here.1. Hobby. Accept that it will cost you money but enjoy the thrill of gambling, while pretending that you are doing some deep "analysis" or have some "edge" over everyone else.
2. Full time. Dedicate your waking hours to it. Put up some serious capital - say £100k min. Probably introduce some leverage. Lose it all.
Check the internet for real research into the success of novice day traders (which is what you are talking about).
They get destroyed.
They trade too often, let losers run too far, cut winners, and simply LOSE MONEY.
It really is as simple as that.
And if you still don't believe me try this for a thought...
If any old novice could start trading and routinely make money, then EVERYBODY would be doing it.
There are literally ZERO barriers to entry.
If it was an easy way to make money then you wouldn't have anyone making minimum wage flipping burgers or cleaning loos - they would be day trading.
I work in the markets, although I am not a day trader.
TheHighlander said:
Trading would be more what I am looking to do.
I don't know a great deal so if anyone can point me in the direction of some info I can have a good read of etc that would be great.
If you want to make money, don't do it. If you're a disciplined gambler (possibly an oxymoron) who's prepared to lose money for the fun of throwing the dice, then go ahead. I don't know a great deal so if anyone can point me in the direction of some info I can have a good read of etc that would be great.
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