Beginner Help Please!

[h.b123]

Hey guys
I am 17, from the UK and 18 at the end of this April. So im new to this forum, I love finance and economics and love to keep up to date on the latest news etc. and wish to study economics at university and go into a career like trading. Now I have little experience and when I turn 18 I want to create an online brokerage account to start trading. Firstly, I have heard numerous rumours and positive and negative reviews on all of the following, which do you suggest I trade: FX,Equities or Penny Stocks. I have £1000 of my savings that I wish to invest, I want to try and bring in short term income to compensate for having a job so I can go out and socialize and be financially free etc. I am also taking a gap year so I will have free time to trade.

Can anyone help to direct me into the right direction, how do I pick the best stocks, what are the best short term trading strategies for making short term cash instead of trading long term for the future and is this possible??

I really appreciate you taking the time out to read this and look forward to any helpful suggestions that you can offer.
Cheers

 

[TheLastBear]

Hey guys
I am 17, from the UK and 18 at the end of this April. So im new to this forum, I love finance and economics and love to keep up to date on the latest news etc. and wish to study economics at university and go into a career like trading. Now I have little experience and when I turn 18 I want to create an online brokerage account to start trading. Firstly, I have heard numerous rumours and positive and negative reviews on all of the following, which do you suggest I trade: FX,Equities or Penny Stocks. I have £1000 of my savings that I wish to invest, I want to try and bring in short term income to compensate for having a job so I can go out and socialize and be financially free etc. I am also taking a gap year so I will have free time to trade.

Can anyone help to direct me into the right direction, how do I pick the best stocks, what are the best short term trading strategies for making short term cash instead of trading long term for the future and is this possible??

I really appreciate you taking the time out to read this and look forward to any helpful suggestions that you can offer.
Cheers

I don't think anyone will share their strategies with you and why should they?

I would recommend that you focus on one asset class that you feel most comfortable with and start to educate yourself, learn the basics just like you will do when you start college. Take your time and pour a strong foundation.

When you feel comfortable enough, try to create your own strategy. Most likely you will fail several times and lose money until you find something you can work with. Loosing as you learn is normal and very important part of your learning process.

 

[ChattiFX]

Agree with the post above...

I'd add, open (and blow) a few demo accounts with the various brokers on-line before you invest your £1000.

You can try loads of different approaches, technical, fundamental, charting packages etc for free. Then, when it starts to make a bit of sense start focusing on a strategy that works for you, and then look to use your own money... For me Spread Betting Forex/Shares is a good start as you don't have to risk too much as you continue learning with real money.

There's lots of information on this, and other, forums... and I'm sure there is a post on here about recommended books, which is always a good start. A book called "Way of the Turtle" helped me a lot, not so much for the actual strategy, more for the overall idea of how to approach making your own strategy, money management etc.

Hope some of that is helpful and good luck...!

 

[duderex]

Rather than trying one by one broker and own many accounts on different broker, why not you try to study them and read their review. The best broker is the broker that can give the good review from their traders.

 

[Unsound]

I would not recommend forex or penny stocks. ETFs are a good starting position. Before you invest real money you should do some practice trading known as paper trading. (on paper only). Go to the library and read all the investing books you can. Read every day.

Most brokers, in my experience, will give you access to their charting software as well. Not all of them give access to API programing for customization so if that is important to you then make sure you get it.

 

[TheLastBear]

Rather than trying one by one broker and own many accounts on different broker, why not you try to study them and read their review. The best broker is the broker that can give the good review from their traders.

I would never listen to what others have to say. Reviews are often totally useless.Often they are either written other brokers and their clients to damage the reputation of competitors or by people who have tried to scam the broker for bonuses, r did not read terms and conditions. Other lose their money trading and blame their broker for it. Plenty of bad reviews also originate from scam countries like Nigeria.

 

[baldtrader]

That question needs a very expansive answer I'm afraid and this isn't really the place for it.

Just to give you some ideas;

1. DYOR- Do Your Own Research on anything you invest in
2. Don't use leverage of borrowed money
3. Read as much as you can by experienced investors
4. Take note of the spread on anything that you buy
5. Think about using a tax wrapper of some kind



Best of luck

 

[ukdaytrader]

That question needs a very expansive answer I'm afraid and this isn't really the place for it.

Just to give you some ideas;

1. DYOR- Do Your Own Research on anything you invest in
2. Don't use leverage of borrowed money
3. Read as much as you can by experienced investors
4. Take note of the spread on anything that you buy
5. Think about using a tax wrapper of some kind



Best of luck

Ok the first 4 is fine.. but a tax wrapper for £1000 is a little over the top !

 

[TheLastBear]

Rather than trying one by one broker and own many accounts on different broker, why not you try to study them and read their review. The best broker is the broker that can give the good review from their traders.

I will strongly disagree with that due to the fact that most reviews are written by two types of reviewers:

1. Other brokers who try to damage the reputation of their competition (good reviews are written by brokers or their clients as well).
2. Traders who have either lost money and blame their broker because they are pathetic idiots, or traders who accepted a bonus, did not read the conditions and ran into issues.

I always ignore reviews, do my own research and if I feel comfortable to open an account I do that with a very small amount and see for myself.