How much do you need to day trade?

[Dacks]

if you pay £25 for a round trade you need to make at least £50 from each trade (double) - that will pay the broker and give you money for your next trade. for profit you need to add more, maybe another £25 for 1:2?

 

[Shanghai]

What markets are you intending to trade? I hope you have decided to change your approach from buying UK shares directly as you intended before. Run some calculations and you will see that if you day trade UK shares by buying them directly you could easily end up having to double your money each year just to pay for the 0.5% stamp duty (400 trades using half of your account on each) , and that is without even allowing for trade costs.

I have explained before why it will be so much cheaper for you to use spread betting if you want to trade UK shares. If this doesn't appeal then trade a different market eg US / European shares.

Myself I use IB for trading the German market and IGindex for the UK market for the reasons I have mentioned. I'm perfectly happy with both.

 

[Pound foolish]

Wouldn't have wored with

Woolworths
Cattles
RBS
LLoyds
Taylor Wimpey
Woseley
Marconi

Markets have had a rally for about 3 or 4 months so if you're long you should be OK but if you'd bought last August you'd probably be DOWN.

I started in November bottom fishing. Yep I got burned with Woolworth, but made 50% out of Taylor Wimpey. If I had a bit more courage, which was lacking after losiong on Woollies I could have made 400% on Taylor Wimpey.

I bought Cattles at bottom and sold before they went belly up (I suspected it) as I was only in it for a few points short term. Only lost my trading costs.

Now I go Blue Chip "safe" companies with value that are paying good dividends. No point in a building society at 0.5% ISA.

At the presnt time I am definetely NOT a day trader. Just having a bit of fun. I take the advice about spread betting as it would save on costs and has the potential to have bigger day gains. I would need a demo accoutn first though.

 

[joe4422]

You'll save alot of money with IB. .005 per share. There's also Sogotrade. 3 dollars a trade.