I want to start trading

Energizer Bunny said:
Be clear: are you looking to be a trader or an investor. You say trader but talk about making money in the long term, so it isn't clear.

If you want to be a trader, buying and selling securities on a daily basis then I would be inclined to listen to the above advice (i.e. avoid unless you have time and money to burn) but if you're simply looking for some alternative investments then there's no reason for you not to proceed.

Just make sure you research you investment (be it debt or equity) and understand that your capital is at risk in a way that it largely isn't through standard savings.

For brokers I tend to use Halifax, Soc Gen and Hargreaves Lansdown and can happily recommend all three.
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im in two minds. trader ie make some quick(short term) money but also the safe option for me I guess would be to invest
 
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Judgeneo said:
It certainly doesn't have nothing to do with trading with real money, the general principles are all the same.
They're very useful for leaning the basics, which is what OP needs to do before he starts throwing his money around. I found http://www.bullbearings.co.uk/index.php to be useful as an introduction to how trading works
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Ah, I see what you mean now.

It's good to bear in mind though that using these systems is for learning the mechanics, only.
 
lixxus said:
im in two minds. trader ie make some quick money but also the safe option for me i guess would be to invest
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quick money lol.

you do realise that you can lose money very quick as well?

people are optimist animals and only like to see the side that favours their interests.

Start on the premise that you will lose money when trading until you learn. If you can stomach that then carry on. At least you won't be dissapointed!
 
Admiral Huddy said:
Simulate buying and selling for a bit first. give your self £500 or so see what you can do with it. It might convince you one way or another. Remember that your profits maybe subject to fees and personal taxes so any returns bust be big to make it worth while.

Has Barclay today convinced you to have a dabble?
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I dont bank with barclays, but my mate has recently in the last 6 months been trading and has teased me somewhat to give it a try.

2013 for me is to make some investments and extra revenue streams as a job on its own is not cutting it for me in today's economic climate.
 
Just to clarify I am familiar with how trading works , just not what tools/brokers are best to use compared to someone that has been trading for past 10-15years
 
kgi said:
He said he wants to trade, not invest in an ISA.

Also, 10% return is good compared to what exactly? 10% return on £100 is £10, is it worth taking up trading for that? 10% on 10k is pointless considering the opportunity cost of your investment.
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I mentioned the ISA to show you can get a decent return with about 2 minutes work. Yes, it isn't risk-free, but it beats 2.5% or whatever you'd get as cash.

10% isn't bad on 10k - what would you define as the opportunity cost of it (i.e. what would you do with it to return significantly more than 10% with the same or moderately more risk?).
 
jamief said:
I mentioned the ISA to show you can get a decent return with about 2 minutes work. Yes, it isn't risk-free, but it beats 2.5% or whatever you'd get as cash.

10% isn't bad on 10k - what would you define as the opportunity cost of it (i.e. what would you do with it to return significantly more than 10% with the same or moderately more risk?).
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stack shelves at the local supermarket for a couple of months or a few more months of weekends, and with 0 risk. Honestly, the amount of time it takes to do the necessary reading on companies, follow the news etc. is such a time sink that you'd require much more of a net £1k profit a year to justify it.


It's not the 10% that I'm criticising, it's that on his capital it's really pointless. He's got 6k to trade with. A 10% is 600 quid. For the risk he is taking and the effort it requires it's a no brainer.

The ISA example you gave is a much more preferrable, safe and less of a headache way to make nearly as much, so why bother trading.
 
kgi said:
stack shelves at the local supermarket for a couple of months or a few more months of weekends, and with 0 risk. Honestly, the amount of time it takes to do the necessary reading on companies, follow the news etc. is such a time sink that you'd require much more of a net £1k profit a year to justify it.


It's not the 10% that I'm criticising, it's that on his capital it's really pointless. He's got 6k to trade with. A 10% is 600 quid. For the risk he is taking and the effort it requires it's a no brainer.

The ISA example you gave is a much more preferrable, safe and less of a headache way to make nearly as much, so why bother trading.
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I think I will look into a S&S ISA.

can anyone recommend a decent one to have a look at
 
lixxus said:
relative to time spent. Its a gamble I know. I am not naive in thinking otherwise
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Again, I disagree.

Trading isn't about quick money. To lower your risk to reasonable levels you will have to make many trades for small profits over a long period of time. If you go for the quick big score you will take risks that amount to gambling, not trading, in which case you are better off at the casino.

A lot of people have misconceptions about trading and investing. I hope I'm not coming off abrasive or anything. I'm just trying to showcase the real side of things.
 
godinman said:
http://www.halifaxfantasytrader.co.uk/fantasytrader See how much you lose there, then try the real thing!
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Just looked at the leaderboard there and it's a bit ridiculous since they apparently don't bother to simulate stock splits... so all the people at the top are people who happened to buy RBS before they did a reverse split 1:10, and magically their portfolio multiplied 10x in value... :D
 
Day trading, in my opinion, is a mugs game unless you are well connected and have good systems (i.e. the sort of things you get working on a trading floor in a bank). Doing it from an amateur perspective really is no different to a flutter on the gee gees. If you're cool with that then jump on in but I must say I think it's fairly pointless.
 
lixxus said:
I think I will look into a S&S ISA.

can anyone recommend a decent one to have a look at
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Don't forget S&S ISAs dont work like regular ISAs. They aren't a defined product with a rate of return attached. It's just a tax wrapper to put around £10k worth of shares. With that in mind it really comes down to which broker will charge you the least in fees to administer it. Hargreaves Lansdown are usually pretty reasonable (I use them) but shop around a bit.
 
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