1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Trading the stockmarket (NO Referrals)

Discussion in 'General Discussion' started by mcast123, 2 Apr 2009.

  1. mcast123

    Wise Guy

    Joined: 8 Feb 2006

    Posts: 1,040

    This thread is for anyone curious about trying it...

    Long story short, quit my IT job 2 years ago and began trading the markets from home.

    I will categorically tell you now, you WILL lose more than you make for at least a year (even if the markets aren't as mad as they have been). Any websites that make you believe this is easy and they're making a fortune are probably run by Mr Madoff (ponzi scheme guy). I use 3 trading chat rooms on a daily basis and it's amazing the private messages you get vs the public ones. One guy admitted to me he lost his parents house and all his savings etc.

    It took me 18 months of frustration (I've gone through 5 keyboards, seriously), research and bloody hard work to finally get it. I'm now making a very good return.

    If you want to do it, I say go for it, but like anything in life it's not easy. Stay small (trade small amounts) and research obsessively, everything you need to know is on the net.
     
  2. Mr_T

    Hitman

    Joined: 7 Feb 2006

    Posts: 726

    Location: Perth, Australia

  3. Christo

    Sgarrista

    Joined: 28 Oct 2002

    Posts: 9,463

    Location: Returning some videotapes

    Hey Mcast, very interesting. What sized trades to you generally make? Also what sort of things do you trade on? Do you hedge? Lastly as for research, how much do you do? Id love to give it a shot but dont really have the capital, I only place the odd bet on the markets now and then.


    The markets may have been going down in general but volatility = money making opportunities, doesn't matter which way they go. You can always short..
     
    Last edited: 2 Apr 2009
  4. mcast123

    Wise Guy

    Joined: 8 Feb 2006

    Posts: 1,040

    Mr T, as Christo said, I couldn't care less if the DOW hit 1000 or 20000, I'm trading not investing.

    Christo, as you say, to do it full time you'll need a minimum of around £20k ($25,000 is a legal requirement for the US which I trade). I won't go into specifics on what I do, but most "home traders" trades are usually from $2,000 (options) to $50,000 (stocks/etfs).

    The more research the better your trades, simple as that. When you know the daily rate for a Panamax drybulk carrier going from Oz to China, the thermal efficiency of a solar cell and why virtual server technology is making money, you're getting there. You also have to understand the economy and the consequences of the UK/US printing cash will mean for various stocks etc, not too mention technical analysis (get your GSCE maths hat on).

    2 years ago all I knew was, the interest rate going up means my mortgage goes up, now I don't have one.
     
  5. MattandJet

    Wise Guy

    Joined: 13 Oct 2007

    Posts: 1,140

    Location: Cotswolds

    Well done, have a cookie
     
  6. semi-pro waster

    Man of Honour

    Joined: 27 Sep 2004

    Posts: 25,822

    Location: Glasgow

    It's something I'd be interesting in doing when I've got a bit of capital behind me but I suspect it would only ever be likely to be an occasional punt here and there which isn't really the way to do it but as with all betting I take the attitude that I should place down what I can't afford to lose (on a vaguely related note Rudyard Kipling's If is something people could do a lot worse than living by). Congratulations though on making a decent go of it so far and all the best for the future.
     
  7. Marky

    Capodecina

    Joined: 16 Apr 2007

    Posts: 23,392

    Location: UK

    I certainly wouldn't risk it in this state of economy...
    If I had to know I was going to lose out within the next 12-18 months and have no job to boot, as well as the fact you gotta be an avid "researcher", count me out!
    Too risky, too time consuming imho...
     
  8. NeilF

    Capodecina

    Joined: 15 Nov 2003

    Posts: 13,887

    Location: Marlow

    Having lost a five figure sum (5-10 years ago), I'm never trying it again...

    The things is, as a private trader you're too susceptible to word of mouth/rumours. And quite often these are put out by people simply wishing people to buy so as to raise the price, so they can quickly sell...
     
  9. daz

    Capodecina

    Joined: 18 Oct 2002

    Posts: 24,029

    Location: Bucks

    The BBC Tv series about making ordinary people into hedge fund traders was quite eye-opening. The amount of research required to pull off consistently successful trades is crazy.
     
  10. NeilF

    Capodecina

    Joined: 15 Nov 2003

    Posts: 13,887

    Location: Marlow

    I was unlucky. Before we had kids I had money lying around, so tried a few investestments and was making a good profit. eg: With one investement of just over a thousand pounds or so, I doubled my money in less than two weeks.

    This was during the 'good times' when the market was growing, and no one realised that a lot of the IT and web related companies who were actually making nothing (not even money) were actually worthless - Freeserve comes to mind.

    Anyway, I wish my first attempts had been unsuccessful, as I then carried on and as the market sank, and I lost a nice lump of money (which would have been far better off invested in the mortgage).

    It was clear that a lot of tips coming out (even in reputable papers and web sites) were completely unfounded and IMHO were there simply to push up the price for other individuals to make a quick profit of your losses!


    Anyway, my fault... I've written it all off and just laugh about it now... :(:(:( <--- See!
     
    Last edited: 2 Apr 2009
  11. amkan13

    Gangster

    Joined: 15 Jul 2005

    Posts: 373

    Location: guildford, surrey

    the economy is eventually going to pick up again, so recently i put a £100 into 10 different shares for the long term. i dont give a crap if i lose it, id consider it a learning experience.

    i didnt listen to tips, just did my own research and brought em.

    as long as you understand what you are risking its all good.
     
  12. NeilF

    Capodecina

    Joined: 15 Nov 2003

    Posts: 13,887

    Location: Marlow

    Perfect!

    I still have a couple of grand of shares left from my 'disaster' - I've written it off and they're just sitting there (probably still losing money) - But in 10-20yrs I'll take a look at them for a laugh!
     
  13. Cosimo

    Man of Honour

    Joined: 9 Jan 2007

    Posts: 163,799

    Location: Londinium

    I’ve still got some bank and telecoms shares, these will be left for an upturn that will come in a few years time.
     
  14. mcast123

    Wise Guy

    Joined: 8 Feb 2006

    Posts: 1,040

    Considering the cheapest UK rate to buy shares is around £5 per trade, you've spent £50 on fees to buy £100 of shares. I'll assume you got the trades for free in a £100 or less broker signup or something, good luck to you either way.

    Just to let you know, global stockmarkets are about to rise around 40-50% in the next 3 months, so any buy and hold investments should be fine. Be wary of when inflation caused by money printing kicks in, current theory is for new stockmarket lows next year.
     
  15. RossG

    Wise Guy

    Joined: 5 Dec 2007

    Posts: 1,269

    Location: Harrow, London

    Always been a bit wary of the stock market. A family friend of ours used to work in the city on the stockmarket. Went to a lunchbreak for an hour one day, only to come back and find out he'd lost £500,000 :o
     
  16. NeilF

    Capodecina

    Joined: 15 Nov 2003

    Posts: 13,887

    Location: Marlow

    :rolleyes:

    There you go... Another cast iron top - Quick, buy buy buy!
     
  17. daz

    Capodecina

    Joined: 18 Oct 2002

    Posts: 24,029

    Location: Bucks

    Lunch break for an hour [​IMG]

    Losses or no losses, pretty sure most firms would not like someone ever taking that long over a lunch during a trading session.
     
  18. ironman

    Sgarrista

    Joined: 18 Oct 2002

    Posts: 8,416

    Location: South Central L.A.

    The best way to learn is from someone who is doing it already successfully.
     
  19. TheBrooder

    Mobster

    Joined: 8 Jan 2007

    Posts: 3,211

    Location: Cognac, France

    I'm buying currency at the moment and that's stressful enough so even though I'm interested in the stock markets I doubt I'll ever get into it
     
  20. NeilF

    Capodecina

    Joined: 15 Nov 2003

    Posts: 13,887

    Location: Marlow

    If you've been buying the dollar recently you're laughing!