1st Time Trader

[Skot]

Hi everyone, the name's Scot

I'm completely new to all this, so please go gentle with me.

Ok, I've have some available funds which I'm looking to invest in stocks, shares etc.

I've watched many videos on YouTube as well as trawling the internet, finding various websites promising to make me anything from £100 per day, right through to £1000. As a complete novice, it's becoming difficult to actual find anything or anyone who's remotely credible. Hopefully he's where you guys can help....

As I say, I have some funds set aside that I'd like to invest. I guess my questions are:

1,. What's best to invest in?
2,. Is it wise to spread over Binary, Stocks, Forex etc?
3,. What company/s are reputable?
4,. Is there someone who offers courses that are actually genuine rather than just another scam?

Sorry if the above questions are lame or you've heard them 1000's of times before.

As for me, I have a maximum of £5k to invest. I'm not after the luxurious, lavish lifestyle (not yet anyway) straight away. As long as I can make a small, healthy profit per day/week, then I'm happy. By small profit, I'd be happy with £40-50 days. As long as monthly rent to paid and I can put food on my table, then I'm happy. I'd sooner walk before I can run.

Over time, I would like to eventually see those big pay days. Videos etc I've watched where the person claims to of made £32k with five days with just £400 simply do not seem real or achievable to me. I may be wrong though, after all, I'm brand new to all this.

So, if any of you out there can give me some form of guidance etc, I'd be most grateful. Maybe even take me under your wing and guide me.

Thank you in advance and I look forward to hearing back from you.

Scot

 

[Dowser]

Hi Scot

I would keep the £5K in the bank for now and open a demo account with a UK regulated broker. I use IG and CMC markets, but there are loads of others. Here you can practice with pretend money to test your ideas and familiarise yourself with the whole process of placing and managing trades. As for 'small' profits of £40-50 per day - that's a 200% annual return on your initial £5K. IMHO It's very unlikely you'd be able to achieve this as a newbie, in fact if still had the original £5K a year down the line you'd be doing well.

 

[wintergasp]

@Skot If your maximum is 5k£ to invest, I would HIGHLY discourage you from trying to trade.
@cbrads is right. You will lose 90% of your deposit within 90 days - that's the rule of thumb when it comes down to retail trading.

 

[dashdbn]

Hi and welcome @wintergasp is 100% correct. I also have an IG markets account and, they offer a fantastic demo to try out.

 

[tomorton]

I have to add that trading is not just day-trading. Learn how to enter, manage and exit a trade over 10 days, again and again and again, then you have the basics for managing a trade over 10 minutes.

Its true that the majority of new traders get wiped out very quickly. But the majority of new traders are day-traders. Do as they do and you'll probably experience the same outcome. Learn to trade. Then trade.

 

[barjon]

I have to add that trading is not just day-trading. Learn how to enter, manage and exit a trade over 10 days, again and again and again, then you have the basics for managing a trade over 10 minutes.

Its true that the majority of new traders get wiped out very quickly. But the majority of new traders are day-traders. Do as they do and you'll probably experience the same outcome. Learn to trade. Then trade.

Aye, if you open a spread betting account the default chart that pops up on the trading platform is usually 5 minutes. No accident that - it's where they best make their money from losing punters

 

[Dowser]

Is day trading such a bad idea for a newbie? IMO as long as they are on demo or using small stakes - getting 50 trades in a month is better than swinging for 5.

 

[dashdbn]

I don't think it is a bad idea however, what I do think is that experience with a demo will definitely benefit someone who wants to do the trading.

 

[tomorton]

Is day trading such a bad idea for a newbie? IMO as long as they are on demo or using small stakes - getting 50 trades in a month is better than swinging for 5.

That's the marketing line used to bring in new customers for software, training, accounts, trading rooms and all the rest - they're only small trades and only until the close, so its all only low risk. Of course, the day-trading account size needed is only small so its can be afforded if it all goes wrong. Then of course you can afford to re-capitalise and try again. etc. etc.

Most people go through this and most fail but most are day-traders trying to learn fast and cheap. I say, if you're already a great trader you might make a great day-trader, but starting out as a day-trader is almost a guaranteed ticket to wipe-out.

 

[tar]

Demo demo demo if it works well for sometime then micro lots live ...