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How Much To Get Started In Trading?

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What would you seasoned traders figure was a good amount of cash to start playing the markets actively (commodities/stocks etc).

Ive just doubled my money in 5 months on a company stock plan and was looking to take that money and start doing something interesting with it - wouldnt mind getting back into it all again.

So.... whats a good minimum figure to have a crack at things but not be so low as to not be worth it from commisions/charges?

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Consider alternatives to traditional trading tools. If you use spread betting or CFDs you need only use a small part of your equity to trade (but remember there is risks involved - always use a stop, never slide it and never meet a margin call!!!). So in theory, you can get decent market exposure to the markets with very little capital. The traditional approach means all your capital is at risk.

Have a think about what you want to get out of trading too. Are you an investor or do you want a try make a quick buck?

Have a good think about you aims, if it helps, read a book on investment psychology. Far more useful than any stuff you will read on TA or FA.

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Ive just doubled my money in 5 months on a company stock plan and was looking to take that money and start doing something interesting with it - wouldnt mind getting back into it all again.

er, I'd stick with the company stock plan if I were you!

If you need "interesting" why not take up bungee jumping!

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If i had some money I'd play the markets using spread bets.

The dow usually moves 1% a day ( high to low).

Trades nost days.

So in a year you'd get 52*5=260 days

at 1% each day

thats a total of 26000 points on the Dow.

Say you were betting on a six month Dow ( say March 2006)

the margin is 400, so to bet 10 pound a point you'd need 4000 pounds.

IF, you could ride the full distance you'd make 26,000 *10 = 260,000

Bingo.

I advise you start small say 1 pound per point and see how you get on.

Use the order book to get in and out of the market.

80% of people will loose all their stake money on spreadbetting.

That still leaves 20% making something.

I am broadly flat, so trading is not an easy thing to do.

Good luck mon ami.

Ian.

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Develop and prove a trading SYSTEM first, then worry about money to trade it with. :)

Have a look at www.bullbearings.co.uk where you can trade a virtual portfolio.

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Have a look at www.bullbearings.co.uk where you can trade a virtual portfolio.

What about just trading the indices on 3 month contracts, they are all going up and will be at all time highs by end of 2006 imho.

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What would you seasoned traders figure was a good amount of cash to start playing the markets actively (commodities/stocks etc).

Ive just doubled my money in 5 months on a company stock plan and was looking to take that money and start doing something interesting with it - wouldnt mind getting back into it all again.

So.... whats a good minimum figure to have a crack at things but not be so low as to not be worth it from commisions/charges?

nothing, no seriously is doesn't matter howmuch you have or howsmall or large, that seems to you,

bear in mind you might never win.

bear in mind you could loose tens of stakes before you make money

start a fake no money account

take a half of what you thought was a good stake and limit your trading loses to no more than that, rinse and repeat 5/10 times, then you might be succesfull

good luck.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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