I agree hence my earlier post re trade a demo account initially but just not for too long ie the whole year!
Spreadbetting as a university student
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I agree hence my earlier post re trade a demo account initially but just not for too long ie the whole year!
M
malaguti
I agree hence my earlier post re trade a demo account initially but just not for too long ie the whole year!
well then sound advice..although i still prefer the stock option
Aside from experiencing the emotions of having some money at risk (that you likely will lose) I wouldn't bother with spread betting. Call me silly but when your 'broker' is also your counterparty, knows your position and has some control over the fills you receive in their own parallel market then you've got about as much chance of not being raped by them as a 14 year old girl going back stage with Jimmy Savile to meet his chum Garry Glitter.
capitalspreads
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DT
you have asked to be called silly. so i will. the major spread betting companies have thousands of clients taking ten of thousands of trades a day.
whilst clients are very important to SB companies they should try to get away from thinking too personally about their trades. For the vast majority of clients we are totally unaware of their individual activities as the trades just go into one huge pot called the "risk book"
We are generally only interested in the net position on the "risk books". The fact that a client makes a five/ten/twenty pound trade/order in anything just will not register. Nearly all clients are on auto execution which is actually often BETTER than DMA as you will almost certainly be filled on a trade whereas on DMA you must rely on there being a counterparty to your trade request.
if you are a high frequency/scalping trader there is an argument for going DMA but even here you must weigh the clearing/margin costs versus SB/CFD.
the numbers are pretty clear. Winners/Losers ratios on SB are almost exactly the same as private clients using Futures/FX/Margined Equity (actually slightly better the last time we did the analysis)
plus any commentator should weigh their language before posting.
Simon
you have asked to be called silly. so i will. the major spread betting companies have thousands of clients taking ten of thousands of trades a day.
whilst clients are very important to SB companies they should try to get away from thinking too personally about their trades. For the vast majority of clients we are totally unaware of their individual activities as the trades just go into one huge pot called the "risk book"
We are generally only interested in the net position on the "risk books". The fact that a client makes a five/ten/twenty pound trade/order in anything just will not register. Nearly all clients are on auto execution which is actually often BETTER than DMA as you will almost certainly be filled on a trade whereas on DMA you must rely on there being a counterparty to your trade request.
if you are a high frequency/scalping trader there is an argument for going DMA but even here you must weigh the clearing/margin costs versus SB/CFD.
the numbers are pretty clear. Winners/Losers ratios on SB are almost exactly the same as private clients using Futures/FX/Margined Equity (actually slightly better the last time we did the analysis)
plus any commentator should weigh their language before posting.
Simon
There is one other advantage of using a traditional futures broker vs SB...
If you are going to trade the shorter timeframes, being able to see the the DOM ladder and "Time and Sales" gives you a huge advantage over other retail traders. Without this, you are trading blind when compared to the pros.
But again, I must state, the originator of this thread would be better completing his studies before dabbling with the markets.
capitalspreads
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agree with u about the originator (as i stated earlier in the thread)
of course nothing to stop a trader looking at the ladder volumes on one platform and trading on another. Actually this might increase your chances of a fill as you have to assume that, on the exchange, there will be hundreds of other people also doing the same thing as you but then beating you to the offered/bid volume on the screen.
Simon
of course nothing to stop a trader looking at the ladder volumes on one platform and trading on another. Actually this might increase your chances of a fill as you have to assume that, on the exchange, there will be hundreds of other people also doing the same thing as you but then beating you to the offered/bid volume on the screen.
Simon
While I'm fully aware volumes have dropped in recent years I'd be surprised if you could get a better fill via an SB firm than via a market order in any liquid futures contract - on an occasions where you could it would surely be indicative of either a skewed spread or a delay in the quotes from the SB firm - and I doubt you'd be too happy to entertain customers for long if they watch a price ladder and then trade with you wherever the underlying moves out of line with your quotes.
Yes, quite... and not to mention the fact that you don't necessarily even have to cross the spread but can use say an early queue position to your advantage..
Unfortunately £500 with an FCM is pretty much suicidal too. No harm in getting a free demo for a month though.
One suggestion which may or may not be suitable (depending on whether the OP codes) - take a look at betfair - they have an API available, its an exchange with its own particular sets of rules... there are some inefficiencies to exploit. Developing a small market making system for a particular betfair market would probably be more illuminating than trying to take directional punts at an SB firm while using some combination of advanced tea leaf reading/magic lines on a chart etc...
Hakuna Matata
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My advice would be this; Open an account with Oanda or IG (been out of teh SB loop for a while but I think they come with a good reputation).
If you are more interested in Macroeconomics and the politics of economies, choose Oanda. if you are more interested in stock specific stuff (i.e. individual companies), choose IG.
Then read the following:
Every Day, read the "Lex" column in the FT, and each week read either Investors Chronicle and/or The Economist, depending on your interests. Your library will have access to all three. From these resources, choose two instruments - either two stocks or two currencies - that you believe have some reason to re-price...
for example, you might read in the Economist that inflationary pressures in the GBP are increasing, and that the Korean fiscal deficit is widening beyond control. As such, you choose to be long GBP short KRW. Put the position on and wait until a) you can't resist taking the profits, b) you hit your stop, or c) you change your mind about the trade. Review the positions each week in a diary, making a note of any new developments you have read about that you think are going to influence the trade, and how you feel about the position.
That's it.
Don't think about day trading, don't look at graphs, don't buy a book on technical analysis. Concentrate on your studies and spend a few hours a week doing research / keeping a journal. When you come to interview, this kind of experience will weigh heavily in your favour.
Good luck.
If you are more interested in Macroeconomics and the politics of economies, choose Oanda. if you are more interested in stock specific stuff (i.e. individual companies), choose IG.
Then read the following:
Every Day, read the "Lex" column in the FT, and each week read either Investors Chronicle and/or The Economist, depending on your interests. Your library will have access to all three. From these resources, choose two instruments - either two stocks or two currencies - that you believe have some reason to re-price...
for example, you might read in the Economist that inflationary pressures in the GBP are increasing, and that the Korean fiscal deficit is widening beyond control. As such, you choose to be long GBP short KRW. Put the position on and wait until a) you can't resist taking the profits, b) you hit your stop, or c) you change your mind about the trade. Review the positions each week in a diary, making a note of any new developments you have read about that you think are going to influence the trade, and how you feel about the position.
That's it.
Don't think about day trading, don't look at graphs, don't buy a book on technical analysis. Concentrate on your studies and spend a few hours a week doing research / keeping a journal. When you come to interview, this kind of experience will weigh heavily in your favour.
Good luck.
ffsear
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Is this even possible? Surly the SB firm would need an entire front end process just to feed me a dodgy price. Either that or the'd have to move the price for everyone.
I only use the SB platform to execute trades. My charts come form a different data source, so i'd spot any price deviation straight away.
CityTrader
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if you were trying to suggest that the SB'ing firms move the underlying market so they can trigger a stop of a punter to make money, then I think it's you who's 5 years away from having an understanding of the markets..
Pat494
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you don't have to say who with and they don't check how much. Plenty of room for Walter Mitty types to exagerate a tad.
