Uk shares for a living

[Splitlink]

Splitlink

Yeah it is boring to day trade uk shares , but maybe there is an edge somewhere in it , example : what about trading med cap companies shares in some sectors after comparing it with other shares in the same sector , maybe it will be late to follow the same sector shares , any ideas guys ?

You have to be careful with the spread. They are likely to be best within the top 350, otherwise they too wide for my taste.

There is an edge. Know a bit about the companies, what you think the fundamentals are. I believe that that is as important for share trading as is TA because of what I said before i.e. gap openings. Company calendar dates for finals, etc., but there are always surprises.

I thought that Daily Mail was good a few years ago and I bought them. They were in the process of selling their free press arm and, in the middle of the night, released the news that they had decided not to. My shares opened well down and, in the end I closed out with a loss of 80 pence. I don't think that I could have forseen that
and these surprise company decisions are what gives shares these spectacular moves that are hard to see coming.

 

[tar]

You have to be careful with the spread. They are likely to be best within the top 350, otherwise they too wide for my taste.

I agree , but what about the min idea anyone had tried it b4 ?

 

[foredog]

You have to be careful with the spread. They are likely to be best within the top 350, otherwise they too wide for my taste.

There is an edge. Know a bit about the companies, what you think the fundamentals are. I believe that that is as important for share trading as is TA because of what I said before i.e. gap openings. Company calendar dates for finals, etc., but there are always surprises.

I thought that Daily Mail was good a few years ago and I bought them. They were in the process of selling their free press arm and, in the middle of the night, released the news that they had decided not to. My shares opened well down and, in the end I closed out with a loss of 80 pence. I don't think that I could have forseen that
and these surprise company decisions are what gives shares these spectacular moves that are hard to see coming.

Yep, i don't like holding anything overnight as the openi g gaps can be a killer, RIO and the other miners regularly open 50p different...ouch!

 

[stocktrader77]

Good , can u give an example for pair trading in uk shares ? is it profitable if u pair trade uk shares on a daily basis .

Sure, Il start a journal next week documenting my trades in real time to prove it can be done.

 

[Shaun12uk]

I agree with the other comment that the gaps in position held over night can be devastating and would not hold a position overnight as a rule.

Could anyone comment on daytrading using a DMA broker - I am not at that position yet but know that in all the T's & C's it confirms that there is no guarantee of instant execution of orders in fast moving or illiquid markets.

This scared me to death when I read it as you could make the right call but not get the order filled. Can anyone comment who daytrades as you obviously need good execution of your orders!!!!!

 

[foredog]

With DMA you are trying to trade in the market, if someone puts an order in a millisecond before you and it hits the bid/offer you were trying for then you've missed it, same as if you put the order in with a broker and the bid dissappears.

 

[Shaun12uk]

Daytrade DMA order fill

With DMA you are trying to trade in the market, if someone puts an order in a millisecond before you and it hits the bid/offer you were trying for then you've missed it, same as if you put the order in with a broker and the bid dissappears.

Thanks Foredog.
So I take it with DMA you do see the bid/offer spread and if you offer the right price it does get filled ! I just had visions of spmething similar to a level 2 screen with slow execution of orders. How long does it take on average to get your order filled?

 

[barjon]

........................I agree with the other comment that the gaps in position held over night can be devastating and would not hold a position overnight as a rule....................

mmm, my main bag is trading a stable of FTSE100 shares. I do daytrade them sometimes, but I find it much less productive than holding for days (which sometimes stretches for weeks).

Me being a lousy daytrader aside :cheesy:, one of the reasons for that is that the opening gaps often make up a significant percentage of the move and you've got to be in it to get it. Major Black Swan events excepted - which are extremely rare and can also occur during the trading day - you can go someway to protect against adverse gaps by closing all, or part, position prior to key announcement dates.

In any event, if you are trading with the trend of the share AND the market it is quite likely for an adverse (against the trend) gap to be faded which gives you the opportunity to at least lessen the damage if you can't stand it.

good trading

jon

 

[neil]

UK shares ? - Where could one get a regularly updated list of volatile shares to trade over a period of days ?

 

[coopster]

I am a newbie and have the same question about Short Selling that doesn't seem to have been answered yet in this thread.

Is it at all possible in the UK. I contacted TD Waterhouse, (a UK broker) and they have no trading account that allow people to Short Sell, even before this so called ban.

As far as i can tell, you can bet in the Selling direction or use CFD's but actual selling short has never been allowed in the UK. Is that correct?

thanks

G

 

[raysor]

As far as i can tell, you can bet in the Selling direction or use CFD's but actual selling short has never been allowed in the UK. Is that correct?

thanks

G

This is wrong on both counts. A CFD has an underlying trade, so if you short via a CFD your CFD provider is shorting the stock in the market.
Selling short is allowed in the UK.
A lot of brokers don't allow it, in general, due to constraints from their clearers, or their own lack of risk management.
The classic answer was to sell short, say T+10 or 15. when the broker asks if it is a short sale just say you are getting the stock from somewhere else and it will take a bit of time for the paperwork. Then just buy the stock back before the settlement is due.

 

[coopster]

Thanks for the correction raysor.

I don't know what you mean by "T+10 or 15"?

To enable my short selling, does anyone know decent brokers that will take short sales legitimately? TD Waterhouse only seem to allow CFD's for going short.

Do i have this all wrong?

thanks again

G

 

[rups]

i use ig index. too me a week to get to grips but now i wouldnt use anything eslse. not sure what your trying to do, but if your spreading betting i.e. predicting a future price direction there is no capital gains, but if your talking about buying the actual stock there is stamp duty, but its never got in my way. the way i look at is is if you know when to buy and sell the stampduty is a small part of it.

 

[tar]

guys what is the best website or software for uk shares screening ( top gainers , ... , unusual volume , most volitale ... etc )

 

[raysor]

Thanks for the correction raysor.

I don't know what you mean by "T+10 or 15"?

To enable my short selling, does anyone know decent brokers that will take short sales legitimately? TD Waterhouse only seem to allow CFD's for going short.

Do i have this all wrong?

thanks again

G

You won't find many brokers, if any, that will allow you to go short, for the reasons I have explained.
T+10 etc are extended settlements. The default UK settlement is T+3 (trade date plus three working days). It is a rolling settlement. So if you dealt today, 24th. settlement would be 27th. If you dealt 25th settlement would be 2nd March etc.
So if you dealt today T+10 the settlement would be on 11th March.
Say you wanted to buy and sell within ten days (and thus settle the money on balance) you could buy T+10 and then sell with the appropriate no. of days to get the same settlement.So if you buy T+10 today you could sell tomorrow T+9 and the next day T+8 and so on 'til you get to T+1.
Unfortunately in most of the larger stocks the MMs will charge extra for T+10 so be careful.

 

[kegi]

raysor being a newbie trying to get a grip on whats what in todays trading methods you seem to be explaining what I used to do some 30 yrs or more what we used to call trading on the account ie monday to the following friday week and I could do what I wanted as long as I settled up on that last day win or lose so t-10 is the last day settlement day so as you say you can still do this but not many if any will take you on ?why not ..its my money am I correct on this or not and I am talking shares here hope you don't mind me butting in

kegi

 

[raysor]

raysor being a newbie trying to get a grip on whats what in todays trading methods you seem to be explaining what I used to do some 30 yrs or more what we used to call trading on the account ie monday to the following friday week and I could do what I wanted as long as I settled up on that last day win or lose so t-10 is the last day settlement day so as you say you can still do this but not many if any will take you on ?why not ..its my money am I correct on this or not and I am talking shares here hope you don't mind me butting in

kegi

I didn't mention account trading (where you have a fixed settlement date, as you say)
Todays settlement is a rolling settlement, so T+10 is very similar to account trading (two weeks). If you don't settle until T+10 it is not your money. You are borrowing it for 7 days, if not 10 days, for which you will be charged. Most, if not all brokers will deal T+10. Some even T+15 or T+20.

 

[foredog]

raysor being a newbie trying to get a grip on whats what in todays trading methods you seem to be explaining what I used to do some 30 yrs or more what we used to call trading on the account ie monday to the following friday week and I could do what I wanted as long as I settled up on that last day win or lose so t-10 is the last day settlement day so as you say you can still do this but not many if any will take you on ?why not ..its my money am I correct on this or not and I am talking shares here hope you don't mind me butting in

kegi

When i was market making we started adding a financing premium to anything over T5, unless it was a scrap.

It doesn't seem a lot on one trade but whne you're suddenly selling £50k of stock to 20 different brokers T10 but buying them from the order book t3 then those 11days (still charged over weekends) interest soon mounts up.

or at least it did when rates were 5%+

 

[tar]

Xstrata now 318 , where we r heading from here ?

 

[barjon]

didn't they go ex rights this morning?