Some newbie advice

[dharmy]

Hi all

First off, thanks to all who reply on here - this is by far the best resource for info for me. I am a relative new comer to spread betting. I have been playing around with sample trades on capital spreads for about a month now, mainly on Crude. I have a full time job in IT, so I have access to the web all day. My aim is to use spread betting to earn some additional income. Here are my questions that I need some advice on :

1. What markets / indicies (if any) are best suited for beginners. I have been working with crude since I started, but I want to know if certain markets or indicies are better suited for newbies in terms of research and analysis

• What site is most popular? I use capital spreads but find their charting hangs a lot, I think the igindex interface is good too, but I am looking for one that tells you more about how much you will lose at the stops specified for that trade. Whats most popular with you guys ?

• Is it realistic to start with a meagre £75 / £100

• Is it realistic to aim or expect to make £50 per day?

In asking the above questions, my aim is to build a little second income, in terms of not getting greedy, but earning a consistent amount extra per week/month, every week/month, even if that amount is relatively small.

Thanks in advance to all who reply.

Dharmy

 

[Drumm]

Hi Dharmy,

Try the FTSE 100 for its stable price action and abundance of news coverage.....

I use tradindex.com for its simple trading format and it has a virtual trading system so you can pratice.

You can start trading with minimal funds but you should realy practice virtual trading and carry out extensive analysis for your first trade if you dont want to blow it all straight away....

Making £50 per day is certainly achievable especially when you consider placing bets at £10 per point....

The best advice I can give is learn as much as you can before you trade, you need to develop your own strategy to work around your other commitments......and dont go blowing your money on books and seminars or magic trading systems.....read everything you can on the net and find out which books/seminars are actually worth the spend.....

Good luck,

Drumm

 

[jiggly]

you can start with as little or as much as you can afford to lose, if you shop around you can find a broker which will allow you to place trades with fractional lot sizes. this means that your underlying trade value is not restricted so you can trade for even 1p/cent per market point.

starting with 75 - 100 quid and expecting to make 50 pound per day is very unrealistic. your goals are way out there as you are practically aiming to achieve more than 50% increase in your account. im not saying that 50 quid a day is not achievable with the proper capitalisation but with your experience and start up cost, I shouldn't think so.

trade on a virtual account and them migrate to a live one where you will trade for real money. expect to lose this money even with upto a years experience as you build the necessary psychological skills. only get into this seriously if you are willing to do just that. take it seriously and look pursue this in the long foreseable future.

the best of luck to you. its not going to be easy.

 

[rav700]

New to the market

I totally agree with all that has been said so far.....
First of all starting Live trading with 75,100,200.............is not the way forward...

I would like to tell you that making £50 a day is definately possible but not with the amount of capital you are placing towards you trading....

First of all get your stratergies right learn your market and try to make points or pips consistently after you are confident that you can make say 25 points a week....( As a starting target then move into the arena £10 a point is too high IMHO..I would start with something like £1 a point and see how it fairs...because Phsychology plays a big part in trading ....

If you would like a spreadbetting plan I am happy to assist you I will send you a plan according to your requirement and capital..which should help you in deciding what market is best for you ...
Just Pm you email address to me....

If you have just started trading your aim is not to make money but to learn how not to lose money

The reason I am advising is I learnt the hardway so you should'nt have to.....

Happy Trading
Rav

 

[jhaughey]

the spread on crude with capital spreads is always about 8 or 9 cents in normal market hours.... IB or any other direct access broker will be offering a 1-3 point spread.
one crude futures contract on Nymex equates to a 10£ per point bet with a spread-betting company.
the only contracts it makes sense to use a spreadbet company ( to my eyes anyway ) are very high volume contracts like EuroFX futures and Indices etc... were the spread is nearly competitive with direct access

With contracts other than the kind i mention, you're starting off with a severe disadvantage re. the bid ask spread....

 

[timsk]

• Is it realistic to aim or expect to make £50 per day?

In percentage terms, you're asking how realistic it is to make 50% return per day? Of the 60,000+ T2W membership, there are only a handful of very experienced day traders who maybe make perhaps 2% a day. And they are among the very best. So, to answer your question, snowballs and hell!

If your starting capital is limited to 100 pounds, I suggest using a company like Finspreads who will allow you to trade for as little as 1p per point. If you trade at 10p per point and you have a guaranteed stop loss of 20 points, your risk is 2 pounds, i.e. 2% of your starting capital. If you start along these lines and you manage to double your account in 6 months, you'll be doing really, really well!
Have fun,
Tim.