what is d best form of trading 4 a newbie?

This is a discussion on what is d best form of trading 4 a newbie? within the First Steps forums, part of the Reception category; I just wanna know people's opinions about the best form of trading that suits somebody just starting out. Personally i ...

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Old May 29, 2003, 7:49pm   #1
Joined Apr 2003
what is d best form of trading 4 a newbie?

I just wanna know people's opinions about the best form of trading that suits somebody just starting out. Personally i have opted for spreadbetting cos of it's simplicity and lack of commisions to pay to brokers.
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Old May 30, 2003, 9:13am   #2
 
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Personally, I would have thought the chances of you making money in the first year or two, are pretty slim, so I would avoid spread betting - as spread bets have a wide spread to cover their costs and extra gaming revenue. And all that will happen is, you may end up losing money on what could have been a winning position due to the spread.
If you're going to trade indices use CFD's. If you're going to trade individual equities use a broker. Remember with the ammount of comm you pay.. you get what you pay for.
When and If you start to make money, and the capital gains tax becomes an issue- then look at SB.

Wayno
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Old May 30, 2003, 9:21am   #3
 
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Spreadbets are fine to start with.

Try looking at the thread about Eurostoxxe Futures that is a great index future to trade for newbies like myself.

If you use the free information provided on these boards I can't see why you can't make some money in the first year.

I am sure I read somewhere where it is stated that you can't trade CFD until you have at least a years experience in spreadbetting or shares.
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Old May 30, 2003, 9:29am   #4
Joined May 2003
cfd's ?
and enough margin !

keep to spreadbetting
keep to the indices
keep it small
keep records

best of luck
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Old May 30, 2003, 12:13pm   #5
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grubs50 started this thread i don't understand why experienced traders believe a newcomer has to lose money in his/her first year. It doesn't always have to be true 4 everybody. I'm very sure that there are a lot of newbies who started making profits in their first year so it's good to be realistic but negativity will not help anybody's confidence.
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Old May 30, 2003, 12:35pm   #6
 
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You are right there grubs50.

I wish they had monthly futures for the Eurostoxxe50 like most of the other indices- otherwise I would be cleaning up.

I have never lost money on the Eurostoxxe but I have lost money on all the other indices.
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Old May 30, 2003, 1:19pm   #7
del
Joined May 2003
rglenn,

As a novice the next question would be 'what method' do u use in trading the Eurostoxx?

I have opened a d4f spreadbetting account but am cautious of the potential pitfalls.

Regards,
Del.
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