Trading US stocks

[syd16]

Hi, first id like to introduce myself to the forum and would like to say hello to you all. I work in an investment bank as a risk analyst but I would like to start trading as a hobby.

I was looking at potentially day trading US stocks using market data (not looking too much into the technical analysis but more on the fundamental side) such as stock upgrades/downgrades prior to the exchange opening. So for example, if Goldman Sachs upgrades AIG to buy recommendation at 1pm GMT, I place an order immediately and at the exchange opening at 2pm, the stock rises immediately ie. profit!

My questions are:
- What are the potential problems with this strategy?
- What trading platforms are best for UK residents to trade US-listed securities?

 

[lancenicolase]

1. When you read about a broker upgrades it means it's too late to buy shares as they firstly distribute the upgrates to their clients and only then to everybody else.
2. For day trading fundamental analysis is quite useful as it takes long for fundamentals to change and market to prices them in, if you want to do day trading then you need to learn about technical analysis. I recomment you use both analyses as you'll be able to buy good comanies at the right times.
3. There're plenty of trading plaftforms to choose from in UK but for day trading you need to open financial spread betting or cfd trading account.

 

[Mr. Charts]

A hobby?
Don't bother doing anything unless you are prepared to do it properly and put time effort and very considerable learning into it first.
Otherwise your "hobby" will prove very expensive and psychologically debilitating.
Do you seriously think such a grossly simplistic "strategy" is going to be profitable?
Think about how the stock price might gap up before market open............do you know how to trade BEFORE market open.......actually you don't even know what time the US opens do you?! 2pm GMT huh?!
No doubt you think I'm being hard and rude, but you honestly need a reality check before you start losing money hand over fist..........
And if you think I'm talking through the top of my head, I gave up my dental practice in 1999 to day trade US stocks and have done so successfully for almost ten years full time so I do know what I'm talking about.
If you want to learn something you might gain by reading my current main thread link in my signature.
Richard

 

[Black Swan]

so Syd of Ilford, d'ya not think it's a bit of a pi55 take asking to be given a 'grail of a strategy' given your job? Presumably you're on more than minimum wage...Mr Charts has been far too polite IMHO....want a hobby? Then take up marathon running and raise a few grand for charity, no doubt your employers will also 'till up a few grand of tax payer bailout funds for you....

 

[syd16]

ok looks like there are some people in this forum who are unhappy with their lives, please only reply if you have something useful to say.

what is the advantage of spreadbetting in this instance as opposed to direct stock purchasing?

 

[Trader333]

what is the advantage of spreadbetting in this instance as opposed to direct stock purchasing?

Is this still in reference to day-trading ?


Paul

 

[syd16]

yes.

i understand that spreadbetting allows you to earn money quickly on the spread but if i think that a particular stock will rise, then direct investment in the stock can potentially be more rewarding. e.g. X is trading at 15/18 and i expect it to rise following some favourable data such as financial reports/merger etc. a 2 to 3 point gain is likely so i would buy it and hold for maybe a couple of days. of course, depending on how much you bet on the spreadbet, you can earn more but also lose more which i wouldnt really like to risk.

any recommendations on a US stock-investing trading platform which can be used in the UK?

 

[Trader333]

Personally, I would not day-trade US stocks using any SB platform and would use DA every time. The only issue is that to day-trade US stocks you need a minimum balance of $25K and in my view should not be less than $30K. If you want to do this from the UK then www.interactivebrokers.com is favoured by many.


Paul

 

[Black Swan]

ok looks like there are some people in this forum who are unhappy with their lives, please only reply if you have something useful to say.

Well I'm not the one needing/looking for extra income... Something useful to say...OK, why not simply concentrate on your day job and try to give your employers good value for hiring you.

what is the advantage of spreadbetting in this instance as opposed to direct stock purchasing?[/QUOTE]

What is it you do for a living?