I have just opened a practise account with share.com, which has been a great start into getting some trading experience, allbeit without the risk. And having only traded for a few days it has raised certain questions which I'd appreciate some clarification on.
1.) Stamp duty, this seems to be a significant overhead for day trading, and makes it very difficult (on the basis of trading 15k) to turn a small rise in share price to a profit. I've read that there are other forms of trading such as CFDs which work outside the realms of stamp duty, taking into account the levearage on these types of trading accounts are these highly risky?
2.) Yesterday I had been trading, and once the market had closed my balance was still adjusting, the price was going up and down, at one instance one of my shares went up 13%. I couldn't understand how this could be happeneing when the market is closed? Is it a quirk of the share.com practice account, or is there something happening at the end of the day which affects share price?
3.) At the end of the day yesterday I was £500 up, having bought shares in Fresnillo, which as it turns out was a massive grower yesterday, however this morning my gains were totally wiped out as the market opened and the share price opened at a much lower rate. If no one can trade over night, how can this happen. It's probably a simple basic principle of trading but as yet I dont have an explanation for it. Is it normal practice for day traders to dump all their shares at the end of the day to mitigate against this happening?
Sorry if these are simple questions, but bear with me, I'm still learning.
1.) Stamp duty, this seems to be a significant overhead for day trading, and makes it very difficult (on the basis of trading 15k) to turn a small rise in share price to a profit. I've read that there are other forms of trading such as CFDs which work outside the realms of stamp duty, taking into account the levearage on these types of trading accounts are these highly risky?
2.) Yesterday I had been trading, and once the market had closed my balance was still adjusting, the price was going up and down, at one instance one of my shares went up 13%. I couldn't understand how this could be happeneing when the market is closed? Is it a quirk of the share.com practice account, or is there something happening at the end of the day which affects share price?
3.) At the end of the day yesterday I was £500 up, having bought shares in Fresnillo, which as it turns out was a massive grower yesterday, however this morning my gains were totally wiped out as the market opened and the share price opened at a much lower rate. If no one can trade over night, how can this happen. It's probably a simple basic principle of trading but as yet I dont have an explanation for it. Is it normal practice for day traders to dump all their shares at the end of the day to mitigate against this happening?
Sorry if these are simple questions, but bear with me, I'm still learning.
