Anyone need any help?

[Lee Shepherd]

Hello, Lee
Thanks for the response. I am new to this and just trying to learn about trading stocks, and was wondering how much I could earn monthly/annually if I invested 10 k in a not too volatile company.
My trading strategy would be buying and selling around after a week. How much % in returns on average would you say could be made from 10 k?

Hi Stockboy95,

This is a very pertinent question for which gets asked a lot and answered with various degrees of responses.

The bottom line is there are too many variables to consider to be able to put a figure remotely accurate to this question. It would be akin to asking how much would I earn if i opened a restaurant.

You would need to know location (which index), type of food (particular stock), how much passing trade (volatility) etc. The list is not exhausted.

Anyway, I'll give you some food for thought below which will help you determine what you believe is achievable based on your past results (paper trading).

So firstly, how much would you call a good monthly percentage and how would that compare against other long time professional traders..... 3%....10%.....30% ???

Then how much would you call a good yearly percentage gain.....10% probably not.... 30% that's pretty good....50% that would be excellent.

Imagine having 1 million on account that allows you to earn 500,000 by the year out. Good stuff right. There are accounts of doubling etc etc but these are high risk strategies or simply brokers/hedge funds who have got lucky that year. Just as much as good luck happens, bad luck is also prevalent.

But.... You are not investing this kind of money. 10k will not get you far and is more likely to get you in to trouble than it is to make a good stable income. Sorry to p1ss on everyone's fire here as its probably not want people want to hear.

People would love me if I told them they can earn 400 bucks a day with only 15 minutes and a 1000 dollar account day trading. Unfortunately reality is not a fairy tale.

So, with your 10k. If you made an excellent record year even for a well seasoned trader, 10k would earn you at the rate of 30% a month - 3000k. That's good stuff. But unlikely to be continued month in month out. If you made 50% on the year your account would show a profit of 5k. Excellent percentages but not enough to feed yourself no doubt.

A brief look at top hedge fund returns for 2016 show the following:
7 over 100% with the highest at just below 150% for the year.
The rest or majority are bouncing around 20-30%. This is not accurate of course and my research in to this subject is extremely light to say the least so please feel free to do your own due diligence. It will give you a good insight in to what is achievable.


Regards,
Lee

 

[Stockboy95]

Wow!
That was a great detailed answer. I have tried reading around on investopedia and some other sites but, your answer was super helpful. I checked that on most sites they talk about the average annual rate of return for the S&P is 7%. What does that mean exactly?

 

[chris214]

Hi Lee,

Just discovered this site and your thread. Very kind of you to offer help and advice. I have a couple of questions I wondered if you could help with.

1. I want to find a way to keep a track of what sectors are hot and what sectors are not. Are there any web sites or other resources you use to keep a track of sector performance.

2. I'm at the stage of my trading where I want to start using Level 2. Do you have any experience of or recommendations for any particular provider.

Cheers - Chris

 

[Lee Shepherd]

Wow!
That was a great detailed answer. I have tried reading around on investopedia and some other sites but, your answer was super helpful. I checked that on most sites they talk about the average annual rate of return for the S&P is 7%. What does that mean exactly?

Hi Stockboy95,

The annual rate of return on the S&P of 7% you may have read would relate (I would assume) to the growth rate over that period of time. Most hedge funds will base their personal results on beating this index - or any other index/stock they are investing/trading in. For example, if the index has dropped by 10% but they only took a loss of 3%, they would boast they beat the index. Likewise if they grossed a return of 15% but the index rose only by 7%, again they would boast they beat the index.

Lee

 

[Lee Shepherd]

Hi Lee,

Just discovered this site and your thread. Very kind of you to offer help and advice. I have a couple of questions I wondered if you could help with.

1. I want to find a way to keep a track of what sectors are hot and what sectors are not. Are there any web sites or other resources you use to keep a track of sector performance.

2. I'm at the stage of my trading where I want to start using Level 2. Do you have any experience of or recommendations for any particular provider.

Cheers - Chris

Hi Chris,

Answer to question 1):

Keeping track means very many different things. Depending on what you wish to track would depend on how you program your sheets. For example, sector performance can be source by doing a quick internet search, this however is simply not enough to trade off of.

Answer to question 2):

If you are going to use level 2 access, get it straight from the horses mouth, ie, LSE. I would safely assume by wanting LVL2 access that you would be day trading or trading in high volume and in quick succession. As you are probably aware, this access will give you orders pending and can be used for great use in high volume, however, these orders can and do often get pulled. Its basically a game of trying to f**k over other traders to puke their contracts at unfavourable prices to them but favourable to those wishing to buy/sell their orders. However, there are many brokers (IG included) that offer DMA. (Direct Market Access) - shop around for best prices for your needs. If you feel you can use this tool for exceptional trading against the pro's, then check out infolect, however, do be sure to check out your own personal latency before doing so otherwise you will always be left behind. Other than that, going down this route may be better suited to a trading desk that has this all included along with many other bells and whistles.

Lee

 

[Stockboy95]

Thanks a lot Lee this clarifies alot
Time for alot of self study!

 

[Lee Shepherd]

I'm not out tonight. My one and only Friday night friend has p1ssed off to some sunny climate. Apparently on business but I know thats bo11ox.

Anyway, I'm having a drink in and I'm bored. Anything going down or anyone want to chat?

 

[piphoe]

Hi Lee, I have a Q what "drink" do you prefer?

 

[Lee Shepherd]

Hi Lee, I have a Q what "drink" do you prefer?

Mainly girlie drinks. I've got a Strongbow Darkfruits on the go (but there are other brands )

I prefer diluted liquor with fruit juices. An umbrella is optional but I love the sparklers and the dancing girls to bring it over.

 

[new_trader]

Hi mate,

Definitely for some people. Some treat it like gambling and although there are similarities, they are actually worlds apart. If someone has been trying for many years with countless cash down the drain, I wouldn't necessarily say that's a reason to give up. On the contrary, keep trying and never give up on your dreams. Whatever they may be or how hard it seems. Never give up. Having said that, that doesn't mean to say that person has to keep bleeding cash, paper trade instead. And as always keep excellent records.

We learn from our failures.

Lee

Paper trade...but why-you-shouldnt-demo-trade?

 

[Lee Shepherd]

Paper trade...but why-you-shouldnt-demo-trade?

Hiya mate,

I'm not defending my words but I will point out that the very first post clearly explains that I will contradict some of my previous posts. It's also important to note that as traders, we should always be open to change our mindset and adapt. Either we move forward as a forum or when I next come back in possibly another few years, it will be the same people talking b0ll0x and achieving nothing.

It's disappointing to come back after 4 years and still see the same names doing the same things. If we don't change and evolve, our results will remain the same. Therefore if we are still not profitable after many years, give it up. You'll just keep bleeding money and time.

Never give up on your dreams still stand, however, becoming a trader isn't really a dream, for most it's a means to an end - and that being in most cases, to leave their dead end jobs and have freedom and money - or something to focus on during retirement. It's a difficult thing to achieve but well worth it when you're there.

Lee

 

[new_trader]

It's disappointing to come back after 4 years and still see the same names doing the same things. If we don't change and evolve, our results will remain the same. Therefore if we are still not profitable after many years, give it up. You'll just keep bleeding money and time.

Basically, traders are born, not made. I agree.

 

[Lee Shepherd]

Basically, traders are born, not made. I agree.

And here's the thing, if you said that to me years back I would have argued the point. Thing is though, after all these years of me offering help and giving advice, only those that are destined will make it. It's almost like fate. It's nice and fluffy to believe we can change things, including ourselves, the thing I've come to change my mind on is that I don't think that's possible for certain things. Trading included. So many factors lead a person successfully down this road. It would be akin to me wanting to be a labourer, it ain't gonna happen, I have a body of a boy. 😀

Lee

 

[TheRegulator]

liquidate my account at 50%

It's another sunny afternoon. I'm chilling and catching some rays. As the title says. Anyone need any help?

Lee

Hello,

Does anyone know why do most spread bet brokers close my positions if my account balance falls below 50%. I keep getting margin call or liquidated. Where my good positions are being closed out. I know they say its to save my account from blowing up. But is that the real reason or is it something else where they take my money and leave me with only half my account balance.

Thanks in advance

 

[highbury fx]

Hello,

Does anyone know why do most spread bet brokers close my positions if my account balance falls below 50%. I keep getting margin call or liquidated. Where my good positions are being closed out. I know they say its to save my account from blowing up. But is that the real reason or is it something else where they take my money and leave me with only half my account balance.

Thanks in advance

They're trying to avoid your account going into negative. 2 reasons why they want to do that, 1. they don't want you as a bad debt or having to chase you to avoid you becoming a bad debt and 2. you may be dealing with a company that has a zero balance rule either imposed themselves or by their regulator so they cut you out of your position to avoid having to credit your account to bring it back to zero.

But why 50%, why don't they wait until you're down to 10% or 20%. This is up to them, its their rules and they can cut you out any time your account has less than 100% of margin needed to maintain your positions. You can reduce margin by placing stops, you can also part close some of your positions yourself rather than waiting for the SB to do it for you.

They will tell you it is your responsibility to maintain full margin at all times.

 

[TheRegulator]

They're trying to avoid your account going into negative. 2 reasons why they want to do that, 1. they don't want you as a bad debt or having to chase you to avoid you becoming a bad debt and 2. you may be dealing with a company that has a zero balance rule either imposed themselves or by their regulator so they cut you out of your position to avoid having to credit your account to bring it back to zero.

But why 50%, why don't they wait until you're down to 10% or 20%. This is up to them, its their rules and they can cut you out any time your account has less than 100% of margin needed to maintain your positions. You can reduce margin by placing stops, you can also part close some of your positions yourself rather than waiting for the SB to do it for you.

They will tell you it is your responsibility to maintain full margin at all times.

Perfect. Thanks very much for explaining that , now that makes more sense. Appreciated Ty sir.

 

[Dagerban]

I have a question. Who offers the best quoteson trading cryptocurrency?

 

[itspossible]

I have a question. Who offers the best quoteson trading cryptocurrency?

 

[Lee Shepherd]

I have a question. Who offers the best quoteson trading cryptocurrency?

Hi Dagerban,

I know very little of cryptocurrencies and price so cannot give you a direct answer. However, you would be best off looking at various brokers that you might prefer to trade with for various other reasons and monitor their spreads/comms.

It would be wise with the current volatility in this market to check them at various times of the day over several days as spreads and commissions can alter and vary greatly from one to another. For starters, ring them up and ask, that way you can rule out the expensive ones immediately - that if its not advertised on their site already, but be aware, most brokers that I know have clauses that state they can alter the spread at will given times of lack of liquidity/low volume or/and volatility/new breaks etc.

Regards,

Lee

 

[Kidy]

Hi,
I need help! I'm looking for a European platform where you can trade options on commodities. So far, not even Google could help. I mean classical call and put, not new binary and digital "options", which are a form of CFD.
Thanks a lot for any advice!