New Trader looking for answers

[Freedomtrader2012]

Hi to all,

Q. Is it a realistic ambition to start trading with approx £30,000 with the aim of trading a sufficient profit to generate/withdraw £2,000 per calendar month as an income?

Q. If the capital is already held within a Stocks and Shares ISA and withdrawn as a monthly income, what liability is there to tax in the UK?

 

[pboyles]

Hi to all,

Q. Is it a realistic ambition to start trading with approx £30,000 with the aim of trading a sufficient profit to generate/withdraw £2,000 per calendar month as an income?

Q. If the capital is already held within a Stocks and Shares ISA and withdrawn as a monthly income, what liability is there to tax in the UK?

Absolutely not, how much is that, about 8% a month? You'll be very, very lucky to make that in a year. The most likely scenario is that you'll lose money for several years.

Based on that you shouldn't worry too much about the tax.

 

[Lord Flasheart]

it depends on what sort of trading you want to do and how comfortable you are with leverage. Yes you can make that amount,but not as soon as you start out.you may never learn to be successful,have you considered that? its not like buying a franchise for 30k that returns a certain amount. it really could take years to learn.if you got 30k that you wont depend on later if life,then it may be worth a shot

 

[Freedomtrader2012]

Thanks for your replies. Looking for all opinions/information available. Completely new to trading and considering starting with small day and/or swing trades in FTSE 100 shares. I have approx £60,000 in total with £30,000 to trade, initially with small percentage on each trade from this £30,000.

 

[timsk]

Thanks for your replies. Looking for all opinions/information available. Completely new to trading and considering starting with small day and/or swing trades in FTSE 100 shares. I have approx £60,000 in total with £30,000 to trade, initially with small percentage on each trade from this £30,000.

Hi Freedomtrader2012,
Welcome to T2W.

If you trade U.K. equities, keep in mind that you may have to pay Stamp Duty. You could avoid this by trading a derivative product like CFDs or, alternatively, spread betting. However, the bid / offer spreads on instruments offered by spread betting companies do not favour day trading. The good news is that under current U.K. tax laws, any profits will be tax free. Profits made via CFDs or trading actual shares via a direct market access broker are subject to Capital Gains Tax. If you want to compare and contrast spread betting with CFDs - check out this FAQ

As for making the profits you desire, it's been done before and, doubtless, will be done again. However, it's a very big ask starting from scratch. My advice would be to not think about potential profits at all. Not seriously, anyway. Start with a demo account and, once you're confident in your approach, move on to a live account and trade the smallest size possible to begin with. Based on your live trading, you'll see exactly what you're P/L is. Keep in mind that it's far easier to make money when there is only a few pounds at risk than it is when serious money is involved. Scaling up proves to be a major problem for a great many traders. That said, it's better to have a vague idea of what you might be able to achieve based on your own results - than it is to speculate based on a random set of answers from people you don't know on an online forum.
Tim.

PS - This FAQ goes into more detail: Realistically, How much Money can I Expect to Make?

 

[pboyles]

Yes it's been done before and will be done again. Has it been done before by someone just starting out spread betting FTSE shares? I seriously doubt it.

The vast majority of people in your position lose most or all of their first account. Do not start with real money, you'll lose it. Also consider how much you'll lose by not working (I assume this to be the case as you're talking about day trading). I know it's great to think you could make 8% a month and not have to work but really you're dreaming.

 

[Hoggums]

Hi to all,

Q. Is it a realistic ambition to start trading with approx £30,000 with the aim of trading a sufficient profit to generate/withdraw £2,000 per calendar month as an income?

Q. If the capital is already held within a Stocks and Shares ISA and withdrawn as a monthly income, what liability is there to tax in the UK?

Q1: No, You are asking if you can make over 6% per month. That's the equivalent of over 100% per year profit. Quite possible with leverage and experience. The 2nd of which you don't have. I do not think this is a realistic target for unleveraged investments in Stocks and Shares.

Don't fall into the mistake of thinking trading with leverage is easy, you'll lose that £30k before you know it.

Q2 . I believe this has already been answered.

I do not believe that your ambitions are realistic. Learn to trade by all means but keep that 30K locked away until you've learned about the markets and learned to become profitable. Most people don't manage either of them before they give up.

Best of luck.

 

[NVP]

not much more to add to above................

no offence to the original thread starter but I repeat again to the T2W mods and the "old school" watching this thread

where does everyone seem to get the information from that trading is easy and such high income levels are possible ?

is it just the scammers and the seemingly hundreds of learn to trade Forex websites promoting this cr*p.........or are general newspapers and magazines now saying its easy money ?

beats me......
N

 

[pboyles]

Was it Secker or WIN that was advertising in the Easyjet magazine for a while? People believe this crap because they desperately want it to be true.

 

[timsk]

no offence to the original thread starter but I repeat again to the T2W mods and the "old school" watching this thread

where does everyone seem to get the information from that trading is easy and such high income levels are possible ?

Hi NVP,
Although I'm not a Mod, I guess I am 'old school' and I am on the staff - so I assume your question is directed at me as much as anyone else? The answer beats me too. One thing is for sure though, they don't get it from T2W discussion forums - as the replies to this thread demonstrate.

I'm the first to admit that the site has lots wrong with it and there's much that can - and will - be done to make it better. In the meantime, for new members like the OP who want to gain accurate info from experienced traders - then this is the place to be. We may not have told him what he wants to hear and he may decide to ignore the advice he's received - but it does underline the continuing value and relevance of the forum.
Tim.

 

[Shakone]

not much more to add to above................

no offence to the original thread starter but I repeat again to the T2W mods and the "old school" watching this thread

where does everyone seem to get the information from that trading is easy and such high income levels are possible ?

N

It's human nature.

 

[new_trader]

Hi to all,

Q. Is it a realistic ambition to start trading with approx £30,000 with the aim of trading a sufficient profit to generate/withdraw £2,000 per calendar month as an income?

Q. If the capital is already held within a Stocks and Shares ISA and withdrawn as a monthly income, what liability is there to tax in the UK?

2% per working day is what most traders aim for.

 

[barjon]

not much more to add to above................

no offence to the original thread starter but I repeat again to the T2W mods and the "old school" watching this thread

where does everyone seem to get the information from that trading is easy and such high income levels are possible ?

is it just the scammers and the seemingly hundreds of learn to trade Forex websites promoting this cr*p.........or are general newspapers and magazines now saying its easy money ?

beats me......
N

It's t'internet innit Soon as google picks up that you've got a passing interest in investment/trading you get bombarded with with the dream ads.

 

[alexander]

Hi to all,

Q. Is it a realistic ambition to start trading with approx £30,000 with the aim of trading a sufficient profit to generate/withdraw £2,000 per calendar month as an income?

It is realistic for some prof traders but sort of unrealistic for newcomers to this game. You see the profits of profs come from newcomers.

 

[justtrader]

With so many posters being so negative about trading, It then begs the question what are all of them doing on a trading site?

 

[justtrader]

It is realistic for some prof traders but sort of unrealistic for newcomers to this game. You see the profits of profs come from newcomers.

No! the profits of profs does not come from newcomers , newcomers have a finite amount of capital
Retail sector accounts for less than 10% of the market.
If profs had to depend on newcomers the markets would close in a day.

 

[timsk]

With so many posters being so negative about trading, It then begs the question what are all of them doing on a trading site?

Hi justtrader,
I suspect that what you refer to as being negative, other would refer to as being realistic!

Tim.

 

[justtrader]

None of the posts were realistic it was all gloom and doom
After reading the thread I almost gave up trading, even though I have been trading 10 odd years successfully.lOl!
There was a time on t2w when a realistic post would gone something like this

"Study, learn ,practice demo , test with small amounts etc.and if it does not work call it a day
At the end of the day if someone wants to trade, you cannot put them off, which seemed to be the unsaid statement, in most of the posts. being realistic would also call for a bit of encouragement and pointing in the right direction as per what I said above..

 

[No Risk Trader]

Some others have addressed this. It depends on what market you trade and leverage. I would trade US Equity Options. You also have to know your risk tolerance. You can be assured not to lose your money and generate monthly income using Options.

Hi to all,

Q. Is it a realistic ambition to start trading with approx £30,000 with the aim of trading a sufficient profit to generate/withdraw £2,000 per calendar month as an income?

Q. If the capital is already held within a Stocks and Shares ISA and withdrawn as a monthly income, what liability is there to tax in the UK?

 

[pboyles]

. You can be assured not to lose your money and generate monthly income using Options.

Nonsense.