Advice on trading in shares in my spare time?
Discussion
Hi all,
This year I'd like to buy shares in something. I quite like the idea of keeping an eye on the markets and buying low, selling high, etc. A handful of trades a month maybe.
Not a lot of money compared to most, not more than £1000 but it's as much as I can afford to risk.
If I make £50 every month or so through buying right, make a little bit a lot of times etc. hopefully at the end of a year I'll have made a meaningful amount. Not millions (though I'd settle for millions if I HAD to!) but if I could turn £1000 into £1500 and I enjoy doing it that has to be something, right?
This year I'd like to buy shares in something. I quite like the idea of keeping an eye on the markets and buying low, selling high, etc. A handful of trades a month maybe.
Not a lot of money compared to most, not more than £1000 but it's as much as I can afford to risk.
If I make £50 every month or so through buying right, make a little bit a lot of times etc. hopefully at the end of a year I'll have made a meaningful amount. Not millions (though I'd settle for millions if I HAD to!) but if I could turn £1000 into £1500 and I enjoy doing it that has to be something, right?
- Any advice on those online fake-money dealing games to get some practice in first?
- Seeing as I'll be doing it in the evenings, is it reccommended to deal in the US markets?
- Am I being realistic in my goals?
- Any other advice?
It can take a while to succesfully learn the markets. With that sort of money you could just as well or better on something like betfair just betting on sports. I used to just sit there betting on matches of various sports that are about to finish where it looks very likely one team is going to win (only bet on activities with a small number of outcomes i.e win lose draw). Each time you win a small amount of money but it doesnt take long to build it up quite a bit. It also helps to bet on sports you dont know about (i used to do ice hockey) so that your heart doesnt get involved, purely work from the numbers. [/flamesuit on]
There are some companies that could turn your £1000 into £1500, but until they go up in price, you'll never know who they are! If you do, please tell me!
Try searching online for 'Plus 500' and download their virtual trader app (it's not an app as such, I just don't know what to call it!!). They have a really good demo version on there where you play with fake money and trades to see how you get on. Best thing is, it's linked to the real market so you can see what you would've won. Also, try www.III.co.uk. There are chat forums linked to every company on the stock exchange so you can ask regulars what they're thoughts are (warning - they are a lot less noobie friendly than PH!)
Once you can reliably get a regular profit on Plus500 by researching papers/websites before you buy the fake shares, then dig your hand in your pocket and have a proper go.
Alternatively, depending how risk averse you are, find the penny shares section and take a punt on a company that is at 1p or 2p that you think might have a winner soon (oil companies are usually OK, if you can find one in the penny section!). I think it's more psychological that anything, but my impression is that they only need to go up by 1/4 of a penny and you've made £250!! But, they also only need to go down by 1/2 a penny and you've lost £500!
Try searching online for 'Plus 500' and download their virtual trader app (it's not an app as such, I just don't know what to call it!!). They have a really good demo version on there where you play with fake money and trades to see how you get on. Best thing is, it's linked to the real market so you can see what you would've won. Also, try www.III.co.uk. There are chat forums linked to every company on the stock exchange so you can ask regulars what they're thoughts are (warning - they are a lot less noobie friendly than PH!)
Once you can reliably get a regular profit on Plus500 by researching papers/websites before you buy the fake shares, then dig your hand in your pocket and have a proper go.
Alternatively, depending how risk averse you are, find the penny shares section and take a punt on a company that is at 1p or 2p that you think might have a winner soon (oil companies are usually OK, if you can find one in the penny section!). I think it's more psychological that anything, but my impression is that they only need to go up by 1/4 of a penny and you've made £250!! But, they also only need to go down by 1/2 a penny and you've lost £500!
98elise said:
OldJohnnyYen said:
crofty1984 said:
- Am I being realistic in my goals?
You should read Confessions of a Stock Operator and be sure you can answer these questions 'Why can I make 50% in my spare time when experienced professionals doing this full time struggle to beat the index?' and 'Given my capability to generate a 50% return, how come I have only got a grand spare when other traders that make much smaller percentages have lots of grands spare?'
If you can answer those questions, crack on quickly. The sooner you start, the better.
If you can answer those questions, crack on quickly. The sooner you start, the better.
I day trade when I know I will have the time to really pay attention and there is sufficient volatility.
My target is 3%, so I'm just picking up 200 to 300 each trade, but it all adds up.
I do have occaisional 10% gains, but not many
The trick is to only buy at the right price, I set limit buys. I look at what Asia and Europe did (I'm in the US) I look at what reports are due that day that might railroad the market.
I mainly use 2 and 3x sector short and long ETFs and a few other favourites that I know really well.
Do I eff up, Oh yes.
One 8% loss negates a couple of weeks screen staring.
Would I have the guts to do it with larger amounts....no.
I would reccomend you invest for a few years before you consider trading.
My target is 3%, so I'm just picking up 200 to 300 each trade, but it all adds up.
I do have occaisional 10% gains, but not many
The trick is to only buy at the right price, I set limit buys. I look at what Asia and Europe did (I'm in the US) I look at what reports are due that day that might railroad the market.
I mainly use 2 and 3x sector short and long ETFs and a few other favourites that I know really well.
Do I eff up, Oh yes.
One 8% loss negates a couple of weeks screen staring.
Would I have the guts to do it with larger amounts....no.
I would reccomend you invest for a few years before you consider trading.
crofty1984 said:
* Any advice on those online fake-money dealing games to get some practice in first?
Personal opinion is that I don't see the point of them outside of either plain "fun", or live testing of a strategy. Realistically, you're unlikely to learn anything worthwhile.crofty1984 said:
* Seeing as I'll be doing it in the evenings, is it reccommended to deal in the US markets?
That depends on how active you want to be, but in reality with £1000 you're not likely to need to make split second decisions. The market won't have moved enough for you to break even. So I would suggest you don't add the element of the GBP/USD exchange rate and stick to UK companies.crofty1984 said:
* Am I being realistic in my goals?
Are you likely to make 50% in your first year? No. Can it be done? Absolutely. If it's something you are looking to learn about, then see it as more of a learning exercise rather than a trading exercise. From a purely financial point of view there will be 8 year olds in a Chinese sweat shop who will have a better hourly pay rate than you. But if it teaches you a valuable lesson for your financial future, then it could be worthwhile.crofty1984 said:
* Any other advice?
Read the many other threads on here, they do contain some good advice. Keep an eye out for DonkeyApple's posts about AIM companies and why they aren't exactly investment grade. Don't tell him, but he does speak a lot of sense.Enjoy the process, just don't expect to make serious money just yet. Don't be relying on luck.
I have been doing the same £1000 sets, not going to make you rich but if you get it right you can do ok.
My theory is look for at least a 20% return, if it doesnt look likely dont bother as £1000+ trading costs means its not worth the risk.
Started 6 weeks ago, im about 40% up (at the minute) could go wrong tho.
My theory is look for at least a 20% return, if it doesnt look likely dont bother as £1000+ trading costs means its not worth the risk.
Started 6 weeks ago, im about 40% up (at the minute) could go wrong tho.
MElliottUK said:
I have been doing the same £1000 sets, not going to make you rich but if you get it right you can do ok.
My theory is look for at least a 20% return, if it doesnt look likely dont bother as £1000+ trading costs means its not worth the risk.
Started 6 weeks ago, im about 40% up (at the minute) could go wrong tho.
40% in 6 weeks is very good, care to share your secret?My theory is look for at least a 20% return, if it doesnt look likely dont bother as £1000+ trading costs means its not worth the risk.
Started 6 weeks ago, im about 40% up (at the minute) could go wrong tho.
I'm sure luck plays a big part, been messing for 6 weeks but been monitoring shares on my phone for a whilst so I basically look for dips and what I think has potential for growth. Will most likely go the other way at some point! (basically high risk, high return/loss)
Bought - Range Resources, Lloyd's and Xcite Energy. The plan is if I can get a 100% return on one of these I can take out the initial investment re-invest the initial stake and ride that share with the profits.
Sold Lloyd's yesterday to early and that cost me 5%
I've also messed up, I had Gulf Keystone @ about 68p about 12-18 months ago sold for what I thought was a good profit , lost out big time with that one. Sold because I had to much to loose if it went south, basically got spooked. Started again now this time i've put much less in which makes it easier not so get nervous on the bad days.
Bought - Range Resources, Lloyd's and Xcite Energy. The plan is if I can get a 100% return on one of these I can take out the initial investment re-invest the initial stake and ride that share with the profits.
Sold Lloyd's yesterday to early and that cost me 5%
I've also messed up, I had Gulf Keystone @ about 68p about 12-18 months ago sold for what I thought was a good profit , lost out big time with that one. Sold because I had to much to loose if it went south, basically got spooked. Started again now this time i've put much less in which makes it easier not so get nervous on the bad days.
Edited by MElliottUK on Friday 20th January 20:59
MElliottUK said:
I'm sure luck plays a big part, been messing for 6 weeks but been monitoring shares on my phone for a whilst so I basically look for dips and what I think has potential for growth. Will most likely go the other way at some point! (basically high risk, high return/loss)
Bought - Range Resources, Lloyd's and Xcite Energy. The plan is if I can get a 100% return on one of these I can take out the initial investment re-invest the initial stake and ride that share with the profits.
Sold Lloyd's yesterday to early and that cost me 5%
As others have said, one of the worlds best traders managed 18%. For your "system" to net 40% in 6 weeks can not be anything other than luck. Put it this way, are you about to quit your job and re-mortgage your house to go in full time big-style? No? That's because deep inside you KNOW it's luck.Bought - Range Resources, Lloyd's and Xcite Energy. The plan is if I can get a 100% return on one of these I can take out the initial investment re-invest the initial stake and ride that share with the profits.
Sold Lloyd's yesterday to early and that cost me 5%
It is possible to make a decent return, but watch and read a lot first.
I have a 10k pot i use, rarely is it all invested, currently less than 3k held in shares, but since august ive created cash profit of 2,400 after trading costs of around 450ish, and have a little paper profit yet to take.
But i have limited time so have missed more opportunitys than ive taken.
I have a 10k pot i use, rarely is it all invested, currently less than 3k held in shares, but since august ive created cash profit of 2,400 after trading costs of around 450ish, and have a little paper profit yet to take.
But i have limited time so have missed more opportunitys than ive taken.
mrmr96 said:
As others have said, one of the worlds best traders managed 18%. For your "system" to net 40% in 6 weeks can not be anything other than luck. Put it this way, are you about to quit your job and re-mortgage your house to go in full time big-style? No? That's because deep inside you KNOW it's luck.
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