Limited funds.

[Iotrez]

Hi all,

I want to start trading and would like to hold stocks for a few days.

The problem is that I only have limited funds. Is it possible to begin trading with just a few hundred pounds. The problem is that if I buy say 5 stocks and put £100 into each, the profits are so low that it barely covers the online brokers commision for the trade. This is what I've experienced when using a stock market simulator and only starting off with a small amount.

Whats the least amount of money that you would recommend starting with?

Thanks.

 

[timsk]

Whats the least amount of money that you would recommend starting with?

Hi Lotrez,
If you start small and you lose the lot, then you haven't lost a lot - if you catch my drift. So, in a sense, starting small is the best place to start. However, in practical terms, I think you'll be limited to trading with a spread Betting Co. At least this will give you the opportunity to test out your strategies and get experience of live trading. If all goes well and you're winning more than you're losing, you will be able to compound your profits which will help your account to grow exponentially. Given that you're not going to be needing any profits for living expenses, try to focus on the percentage gain rather than £££'s. So, for example, suppose your goal is to double your account in a year. If you achieve this objective, you can boast loudly, proudly and perfectly legitimately that you enjoyed returns on capital of 100% in one year! Many traders on these boards will have more £££'s in their accounts than you, but not many of them will be able to make a claim as impressive as this!
Good luck,
Tim.

 

[grantx]

Lotrez,

If you can select five stocks as investment potential, then narrow this down to two and divide your funds accordingly.

Good luck.

Grant.

 

[roguetrader]

Whats the least amount of money that you would recommend starting with?

Straight question, and a straight answer, any less than £10k and I'd find some sort of high interest savings account to put it in, as you have already noted comissions will kill ya even if you can make a profit. Even £10k is prolly on the tight side for swinging that short a term.
Sorry, I know it's not what you want to hear, but someone will likely advise you different anyways, it is after all just my opinion.
Timsk's spreadbetting suggestion might be the way to go.