Are profits tax-free?

[Masquerade]

It's going to be really tough with £10. I don't think it's the way forward. I'd say you're better off spending your time in a different way.

A broker will make their money from the spread you pay on your trades. Bucket shops will make the money you lose. I don't think you'll get barred for making £500 though. Add a few zeros and maybe you'll get the email/phone call. Those bets are like going to the casino, you might win in the short term, but in the long run you're most likely going to lose as you're taking bad bets.

 

[Vint]

So what's the way forward for me do you think?

What would be the best decision? I have over 300 GBP in my own bank account but again I don't think I'm at all experienced enough to try spread betting and I'd just end up losing my money

 

[Masquerade]

I think you'll be wasting your time with £10, especially doing it on fixed odds. I don't know your academic situation. But maybe take a job, make a few grand and then decide from there. Nothing stopping you from learning about things in the mean time.

You need to have an idea of what you want to do in trading. But i'd not recommend the traditional spread betting companies, they're very harmful to new traders.

 

[MajorDutch]

okay cool. Do you think it would work if I aimed to increase my bank by 10% each day? theoretically I'd be making £100 plus per day in about 6 months (just financial fixed odds)

No it wouldn't work in the long run. You are very young I would advise you buy or download a copy of Mark Douglas Trading in the zone and pay particular attention to money management aspects. There are no rules in this game but it is widely accepted that risking more than 2% of your account on any one trade will probably lead to financial ruin in the long run. If you risk 10% of your account per trade even if you have a solid high % edge if you hit a bad run early on you will be crippled. just my 2 pennies worth.

 

[Masquerade]

I love how he starts the thread worrying about tax when the intention was to start with £10

It reminds me of all the other n00bs who come on this site and worry about the tax before even turning a profit.

 

[Vint]

yeah I guess I was stupid to ask but just want to learn more about the game.

 

[Masquerade]

Are you in school? Planning on going to university? Working?

 

[Vint]

I'm in college first year doing AS levels. I was going to go to a business academy, free ran by Peter Jones (founded by him anyway) and get some business experience. However I've now discovered trading and stocks/shares/commodities and it interests me a lot! Economics is also my favourite subject at college, so I'm not sure right now.

 

[runningdeer]

I love how he starts the thread worrying about tax when the intention was to start with £10

It reminds me of all the other n00bs who come on this site and worry about the tax before even turning a profit.

Couldn't agree more. When you've made enough money to potentially have a tax liability - bloody celebrate, you've become a successful trader. And you can afford to get a good accountant!

 

[Masquerade]

I'm in college first year doing AS levels. I was going to go to a business academy, free ran by Peter Jones (founded by him anyway) and get some business experience. However I've now discovered trading and stocks/shares/commodities and it interests me a lot! Economics is also my favourite subject at college, so I'm not sure right now.

Then here's my advice (which you may not like.)

Seeing as it's coming up to the exam time, just put the idea of trading on hold. Work as hard as you can and get the best grades you can. If you want to make some money in summer holiday then get a job, maybe you'll make a few thousand over summer if you're lucky. You can put that towards trading with later on.

There's nothing stopping you from learning about trading and keeping an eye on things for now. But you're young and there's much better things to do than making money and staring at charts for now. Also, not everyone who trades is a multi-millionaire despite how good some people say they are around these parts. Markets will be around for a long time but this time in your life is only a few years so make the most of what's only available now and don't be concerned about the trading which you can do later (I didn't put on my first trade until I was at university.)

Were you interested in equities/FX/bonds/commodities....?

 

[Vint]

Alright thanks a lot, I guess you speak the truth and from experience.

When you say you made your first trade in uni, are you referring to spread betting? Or actually buying a stock/share?

Thanks again.

 

[Masquerade]

I bought some stock. I had some money stashed away as I worked in a gap year.

Which area of trading were you interested in? Don't let me put you off though, you never know - you might turn your £10 into a million in the summer and i'll look like an idiot. But for the short term (as in from now till June) you'll be better off channeling your efforts towards your studies. A good trader won't give up, but they also have a backup plan too.

 

[Vint]

Just an update, I couldn't be bothered with fixed odds due to ladbrokes saying betting not allowed every few minutes after winning a few..

so time consuming and little return, so I pissed it all away (<10 GBP)

I want to go into spread betting some time but being under 18 it really is annoying.. I'll have to find a way. If I put in 50gbp and bought some shares for <1 GBP per point I could do alright with a little research right? or possibly buy a small contract in gold or silver..?

Thanks

 

[6am]

Just an update, I couldn't be bothered with fixed odds due to ladbrokes saying betting not allowed every few minutes after winning a few..

so time consuming and little return, so I pissed it all away (<10 GBP)

Try roulette, no restrictions after winnings.

 

[Vint]

I'm not bothered with betting in the bookies anymore. Too boring, time consuming and little return. I'll ALWAYS end up losing.

Spread betting is where its at, I'm using a spreadbet demo account and have doubled my starting balance within a couple of days (100k to 200k) pretty much.

I think I could do something with 50 quid

 

[6am]

How are you going to open spreadbetting account if you are under 18?

 

[Vint]

I'm probably going to try and register one in my brother's name who is 18+. Not sure about phone number/card though.. might be hard convincing my brother with those.

 

[6am]

Does your brother know and approve?

 

[Vint]

I haven't asked yet. he lets me do anything in his name yes, but not sure about card/number. I'm wondering if I could use my card/number..