Uk shares for a living

[tar]

Any one only trades Uk shares for a living ? is it doable ?

 

[brynno]

I too would like to ask the same question

I feel confident that I've done the hard part, having backtested a simple daytrading strategy with consistent success for several months;

now where do I go from here? My backtesting has all been done with

(1) pen and paper using advfn.com free charts each day without any "software" whatsoever (wouldn't know where to start)

and

(2) UK stocks

I've downloaded Interactive Brokers TWS demo but can't make head or tail of it. After hours of clicking I still haven't managed to even place an order, even with the help of the user guide, and I consider myself an intelligent (albeit computer illiterate) person. Moreover does IB (or anyone else) even offer direct access to LSE listed shares? Everything seems to be geared towards US stocks. If this is indeed the case, does this mean we should trade only US stocks? The problem then of course is the $25000 "pattern day trader" minimum requirement, not to mention that I know the last 6 months' price movements of the whole of the FTSE 100 inside out, but could barely even name more than a few US stocks

Where does one sign up for an account to start papertrading UK stocks, let alone trade them for a living?!

I'm so happy with my strategy, very confident of what and when I have to buy/sell, and why. If only I knew how to actually put it into practice..

 

[tar]

try ( demo ) spreadbetting they have all ftse100 shares ...

 

[brynno]

It's got to be direct access

 

[tar]

i mean for demo only not live trading

 

[nunrgguy]

i mean for demo only not live trading

Spreads and stamp duty will kill you.
Be careful.

 

[brynno]

Nunrgguy, were you addressing that to "tar"?
are you just referring to the huge spreads in spreadbetting, or did you mean that spreads are larger for uk stocks than US, even if you trade through a direct access broker?
and as for stamp duty, are you saying that i should avoid trading uk stocks altogether and trade us stocks in order to avoid the stamp duty, even though all my research has been done on uk stocks?
please could you clear that up if you have a moment, as I'd really like to be sure about these issues.
thanks!
bryn

 

[tar]

Spreads and stamp duty will kill you.
Be careful.

There is no stamp duty for spreadbetting . Direct access is better but not always depends on your strategy , anyway in spreadbetting there is some advantages like garaunteed stops ( no GSL at direct access ) , and non taxable profits .

 

[nunrgguy]

There is no stamp duty for spreadbetting . Direct access is better but not always depends on your strategy , anyway in spreadbetting there is some advantages like garaunteed stops ( no GSL at direct access ) , and non taxable profits .

We are talking about day trading here aren't we???
Directly buying shares which is what was asked about - you've got wider spreads than US stocks, which is a big factor in day trading, you've got stamp duty and then CGT if you actually make a decent profit. If you're in a position to trade larger position sizes all is well, otherwise your dealing costs and taxes will eat you alive.

Spreadbetting, again the spreads are wider, guaranteed stops cost you quite a lot too.

Overall I don't see UK stocks as instruments for day trading UNLESS you are trading a sizeable account.

BTW, the ban on shorts on UK stocks has/is about to be lifted.

 

[tar]

Not everyone have 25 k to daytrade US stocks , in this case spreadbetting could be the solution especially if we remember there is no taxes and comm to pay on spreadbetting . At Igindex i pay 0.9 extra spread at GM to place a GSL , this is really cheaper than a slippage if u consider how much such stocks can move overnight . Infact you can place two way bets with GSL before market close if u know there will be big announcment on specefic stock after the close or before market open next session .

 

[brynno]

thanks Nunrgguy
I was certainly talking about daytrading, yes
are you sure the spreads are wider in the UK?
I thought that if I stick to the more liquid of the companies that make up the FTSE 100 there was not a lot to choose?? maybe I was mistaken?
do you know if I have to pay stamp duty even if I don't live in the UK and of course don't pay taxes in the UK?
I'll worry about CGT if and when I ever actually get there.
as for the shorting ban, are you referring to the so called "uptick rule"?
surely you don't mean shorting was banned outright?
I'd not only need to be able to short, but also be able to short on a downtick. Obviously if this is not possible my strategy goes out the window. So could anyone let me know for sure what the shorting situation is in the UK

Anyone want to comment please? especially if you happen to be absolutely sure about any of these points

thanks

 

[raysor]

thanks Nunrgguy
I was certainly talking about daytrading, yes
are you sure the spreads are wider in the UK?
I thought that if I stick to the more liquid of the companies that make up the FTSE 100 there was not a lot to choose?? maybe I was mistaken?
do you know if I have to pay stamp duty even if I don't live in the UK and of course don't pay taxes in the UK?
I'll worry about CGT if and when I ever actually get there.
as for the shorting ban, are you referring to the so called "uptick rule"?
surely you don't mean shorting was banned outright?
I'd not only need to be able to short, but also be able to short on a downtick. Obviously if this is not possible my strategy goes out the window. So could anyone let me know for sure what the shorting situation is in the UK

Anyone want to comment please? especially if you happen to be absolutely sure about any of these points

thanks

You have to pay SDRT (stamp duty). You can't short financial stocks. This is due for review in January 2009, sometime.

 

[brynno]

alright. thanks for that! (even if it was bad news)

 

[EmergentFungus]

I day trade on the FTSE. Usually keep it to the miniers like RIO, BLT and LMI as they have huge daily movements. I'm averaging quite a nice daily wage on them.

Some days I have to sit at the PC all day long and other days I'm done and dusted by 9:30am, feeling as if I have stolen candy from a baby.

 

[tar]

I day trade on the FTSE. Usually keep it to the miniers like RIO, BLT and LMI as they have huge daily movements. I'm averaging quite a nice daily wage on them.

Some days I have to sit at the PC all day long and other days I'm done and dusted by 9:30am, feeling as if I have stolen candy from a baby.

Do u have any advices to day trade these stocks ? thanks ....

 

[stocktrader77]

yes its definately doable, I pair trade US & UK stocks.

 

[tar]

yes its definately doable, I pair trade US & UK stocks.

Good , can u give an example for pair trading in uk shares ? is it profitable if u pair trade uk shares on a daily basis .

 

[foredog]

Etrade are quite reasonable for CFDs comm is £9.95 per trade and its as good as DMA, irarely get slippage and the fills are mostly instant if there pretty much that size on the order book.

 

[Splitlink]

thanks Nunrgguy
I was certainly talking about daytrading, yes
are you sure the spreads are wider in the UK?
I thought that if I stick to the more liquid of the companies that make up the FTSE 100 there was not a lot to choose?? maybe I was mistaken?
do you know if I have to pay stamp duty even if I don't live in the UK and of course don't pay taxes in the UK?
I'll worry about CGT if and when I ever actually get there.
as for the shorting ban, are you referring to the so called "uptick rule"?
surely you don't mean shorting was banned outright?
I'd not only need to be able to short, but also be able to short on a downtick. Obviously if this is not possible my strategy goes out the window. So could anyone let me know for sure what the shorting situation is in the UK

Anyone want to comment please? especially if you happen to be absolutely sure about any of these points

thanks

I've done a lot of trading with UK companies and have always been disappointed with the slowness of the exercise, especially for day trading. Then, I have been caught on opening gaps the next day when I have held overnight. I must say that the gap has, also, opened in my favour on occasions but, still, I reverted to index trading, in the end.

I have an idea that day trading UK companies is likely to be a "slow boat to China" compared to other instruments but would be interested to read of success stories from anyone.

I know of one person on this board who was shorting Black Rock eighteen months, or more, ago and, as far as I know, was doing it up until shorting was banned. Get something like that and you are home and dry!

Split

 

[tar]

Splitlink

Yeah it is boring to day trade uk shares , but maybe there is an edge somewhere in it , example : what about trading med cap companies shares in some sectors after comparing it with other shares in the same sector , maybe it will be late to follow the same sector shares , any ideas guys ?