Limited funds.

This is a discussion on Limited funds. within the First Steps forums, part of the Reception category; Hi all, I want to start trading and would like to hold stocks for a few days. The problem is ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Jan 30, 2007, 4:02pm   #1
Joined Aug 2006
Limited funds.

Hi all,

I want to start trading and would like to hold stocks for a few days.

The problem is that I only have limited funds. Is it possible to begin trading with just a few hundred pounds. The problem is that if I buy say 5 stocks and put 100 into each, the profits are so low that it barely covers the online brokers commision for the trade. This is what I've experienced when using a stock market simulator and only starting off with a small amount.

Whats the least amount of money that you would recommend starting with?

Thanks.
Iotrez is offline   Reply With Quote
Old Jan 30, 2007, 8:47pm   #2
The Staff are paid members that perform various roles such as editorial, advertising, support or technical work.
 
timsk's Avatar
Joined Mar 2002
Quote:
Originally Posted by Iotrez
Whats the least amount of money that you would recommend starting with?
Hi Lotrez,
If you start small and you lose the lot, then you haven't lost a lot - if you catch my drift. So, in a sense, starting small is the best place to start. However, in practical terms, I think you'll be limited to trading with a spread Betting Co. At least this will give you the opportunity to test out your strategies and get experience of live trading. If all goes well and you're winning more than you're losing, you will be able to compound your profits which will help your account to grow exponentially. Given that you're not going to be needing any profits for living expenses, try to focus on the percentage gain rather than 's. So, for example, suppose your goal is to double your account in a year. If you achieve this objective, you can boast loudly, proudly and perfectly legitimately that you enjoyed returns on capital of 100% in one year! Many traders on these boards will have more 's in their accounts than you, but not many of them will be able to make a claim as impressive as this!
Good luck,
Tim.
__________________
I'm New To T2W - Where Do I Start? - a must read for anyone new to T2W
I'm New To TRADING Where Do I Start? - a must read for anyone new to TRADING
The Trading Plan Template - a must read for anyone without a proper TRADING PLAN
timsk is online now   Reply With Quote
Old Jan 30, 2007, 9:04pm   #3
Joined Jun 2006
Lotrez,

If you can select five stocks as investment potential, then narrow this down to two and divide your funds accordingly.

Good luck.

Grant.
grantx is offline   Reply With Quote
Old Jan 30, 2007, 9:36pm   #4
 
roguetrader's Avatar
Joined May 2003
Quote:
Whats the least amount of money that you would recommend starting with?
Straight question, and a straight answer, any less than 10k and I'd find some sort of high interest savings account to put it in, as you have already noted comissions will kill ya even if you can make a profit. Even 10k is prolly on the tight side for swinging that short a term.
Sorry, I know it's not what you want to hear, but someone will likely advise you different anyways, it is after all just my opinion.
Timsk's spreadbetting suggestion might be the way to go.
__________________
It is fatal to enter any war without the will to win it.
roguetrader is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
trading as a limited company money123 Home Trader 10 Sep 23, 2009 5:49pm
CFTR Associates Limited - Any good or a Con ? Finch Royal First Steps 2 Mar 25, 2005 10:13pm
Limited company and direct access midge25 Direct Access 0 Feb 7, 2005 10:21am
Shares in Limited company MTger Trading Systems 3 Jan 13, 2004 12:16pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)