Ok Need Lots of Advice! I'm serious about this..

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markpetrovski

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1) say i want to start trading for a living.. realistically could I do that with a stake of £100k without having to go crazy on risk

2) i used to be a bond trader but don't know the first thing about equities trading. What would you recommend to read/courses to go on.

3) which products do you recommend to trade.. cfds/options/individual equities/indexes/forex, a mix? and which company to go with IG futures/ Charles Schwab

4) It seems to me this whole thing is a non-starter if once i manage to make any money on it it will be subject to capital gains tax.. would setting up an offshore account work? and could i remit money back easily to the uk without too much hassle..
 
You sure you are an 'ex-bond trader' because if so you shouldn't really have to ask the questions as they're very basic for an experienced market operator...............

However -

1) Yes
2) You shouldn't need to go on any course as for books go to the big bookshop on Picadilly (circus end)
3) Impossible to answer, for some trades cfds are best, others options and others forex - again, if you are an ex-bond trader the question you're asking is stupid
4) Don't make money then, then no tax to pay......As for setting up an offshore account and bring it back, sure it's possible but illegal if you live in the UK plus there's about a 99% chance the tax-man will find out.
 
anley said:
You sure you are an 'ex-bond trader' because if so you shouldn't really have to ask the questions as they're very basic for an experienced market operator...............
Click to expand...

Too harsh.

Bond guys and equity guys trade from very very different perspectives, the most basic elementary one being equities trade on price, bonds guys look at yield.
 
A Dashing Blade said:
Too harsh.

Bond guys and equity guys trade from very very different perspectives, the most basic elementary one being equities trade on price, bonds guys look at yield.
Click to expand...

Not at all. Bond guys are generally THE most sophisticated market participents. So for an ex-bond trader to ask 'should I trade cfds, equities or options' is not a question fit of them.

Plus the tax question was stupid as well.

Don't take it personally, just being cruel to be kind...........
 
Question 3 - InteractiveBrokers is most probably the best broker for a professonal trader.
 
markpetrovski said:
1) say i want to start trading for a living.. realistically could I do that with a stake of £100k without having to go crazy on risk

2) i used to be a bond trader but don't know the first thing about equities trading. What would you recommend to read/courses to go on.

3) which products do you recommend to trade.. cfds/options/individual equities/indexes/forex, a mix? and which company to go with IG futures/ Charles Schwab

4) It seems to me this whole thing is a non-starter if once i manage to make any money on it it will be subject to capital gains tax.. would setting up an offshore account work? and could i remit money back easily to the uk without too much hassle..
Click to expand...

Whole swathes of the UK have the attitude in 4), but we all have to pay tax to keep all those on social security who think work is a non-starter :)
 
i am an ex bond trader.. it serves me in no way to lie about this on this forum,

not only this i was a bond trader in structured abs securities which are particularly complex (however i did not trade CDO's) where all the crap has hit the fan. ie subprime mortgages etc

but in general it was learning to compare collateral characteristics in different deals (i traded AAA to BBB ) and having a feel for the market vis a vis new issues etc.. and i was more of a flow trader

however a) i have a history degree and b) i worked my way up from the middle office - to the point i was running the desk right towards the end- goes to show what u can achieve if you really want it..!

however now i find myself out of work after doing that for 6 years.. and i did well in general by trading on instinct and trading flow - noone keeps u on a trading desk for 6 years in an top tier investment bank for charity..

so i take the same approach with equities as i did with ABS when i started, be very humble and ask the simplest questions and build up..

thanks for your answers so far - pls keep em coming :)

Mark
 
I'd say trade US stocks - sometimes you can read an order book and trade flow on level 2. Your existing "instinct" and skills should help a lot. The "instinct" is probably subconscious experience and that will get recalibrated if you do trade US stocks as they are different instruments, but your existing abilities should help a lot.
Richard
 
Ah the bund-a horrible contract. Someone leaves their lunchbox in the City and suddenly the 10-year yield gets squeezed!

It might be an idea to trade the 2/10 spread perhaps. Especially if you have a good knowledge about the bond markets?
 
i didn't trade rates.. but my girlfriend did, information flow is so key i that market and the big guys are moving everything around (i guess thats the same with everything)

however you're right perhaps i should look at that.. i used to hedge my fixed rate paper and leave it under/overhedged partially depending how to get a bit of extra profit - notpart of my mandate but when the market was very directional i'd just keep my eye on it and make skme decent money sometimes).. so i do have some experience there. you can trade this on IB i guess?tx
 
Personally I'd set myself up with a data feed (eSignal for instance), charting + Eurex feed comes in at <£100 pcm. Direct access broker (wouldn't go with IB personally, have a look at ODL Securities) provides you with a DOM screen and should charge no more than 10EUR per contract a round trip, less for size (>250 trades pcm)

Pull your finger out and you'll be up a running in a week.
 
thx mate that sounds like what i need to know

just to break it down a little : so esignal for data feed.. that provides the eurex and the charting? i will look at ODL thx - i saw charles schwab earlier in the week not sure how they stack up..

this sounds excellent... pulling my finger out is right!
 
Last edited:
markpetrovski said:
1) say i want to start trading for a living.. realistically could I do that with a stake of £100k without having to go crazy on risk.
Click to expand...
Of course! Didn't you hear? Everyone on this forum makes 200% per year with no risk (which is what you'll need to do to pay taxes, have a halfway decent income, and build your stake in line with inflation). :whistling

jj
 
ok so you think its not possible.....

of course there is always risk but i don't want to play roulette with the money either

from what you're saying i need to make 200k profit to make a living,, your argument seems fundamentally flawed...

i think even if i made 20k in the first year i should be ecstatic given right now i know nothing.. but even if i make half that the learning i gain should hold me in good stead

i might first work at a brokers (i have some contacts) as a trainee just to learn before i start on my own
 
if you started with 100bags you'd be well ahead of most folks on here. from thereon in it depends how much risk you want/can handle. i suspect bund trading will be much higher frequency than your old role.
 
Went with an Alan Rich day course and signed up for his ViaTrader/broker thing. Waste of time and expensive mistake as the Via boys seem to have done a runner complete with my money.
Never trust anyone again. If you want to get rich you do it yourself.


Bump.
 
markpetrovski said:
ok so you think its not possible.....

of course there is always risk but i don't want to play roulette with the money either

from what you're saying i need to make 200k profit to make a living,, your argument seems fundamentally flawed...

i think even if i made 20k in the first year i should be ecstatic given right now i know nothing.. but even if i make half that the learning i gain should hold me in good stead

i might first work at a brokers (i have some contacts) as a trainee just to learn before i start on my own
Click to expand...
This now sounds like you're talking 100k as a learning stake, which is more than sufficient. My impression was that you were talking about trading for a full-time living starting now, for which 100k is not sufficient. Apologies for the misunderstanding.

Also, make sure the broker thing isn't a sales job. You won't learn much about trading doing that.

jj
 
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