Can I day trade with £10k?

georgedixon

Newbie
5 0
Hi,
I am very new to trading and am currently trying to educate myself before beginning trading. I have seen that exists a "Pattern Day Trader" rule and from videos that I have watched, it seems that you can only trade 3 times per week if you have less than $25000 in your account.

I am based in the UK was just wondering if the same rule or a similar one applies over here, as I am looking to open an account with £10k to start with.

Thanks for any help in advance :)
 

NVP

Legendary member
36,535 1,842
hey there ......you will get many responses soon ....check out all the ESMA threads to see how much leverage you can now get for £10k
 

rawrschach

Experienced member
1,223 277
Pattern day trading rules apply to US stocks. You can day trade ETFs and Futures as much as you like so long as you have the margin.

ESMA rules that NVP mentions apply to spreadbetting only.
 

Splitlink

Legendary member
10,850 1,231
Hi,
I am very new to trading and am currently trying to educate myself before beginning trading. I have seen that exists a "Pattern Day Trader" rule and from videos that I have watched, it seems that you can only trade 3 times per week if you have less than $25000 in your account.

I am based in the UK was just wondering if the same rule or a similar one applies over here, as I am looking to open an account with £10k to start with.

Thanks for any help in advance :)
Personally, starting to trade with that much money horrifies me, but I am a dinosaur and times change. Please, do us all a favour and tell us which company you are thinking of, before you start, there are plenty of posters on here who will advise,some good, lots bad (me included) so this is the only advice I will give you.

I think that you should start slowly, at 50p per point, and build up.
 

Novicetrader1

Junior member
10 0
I wouldn’t dive in with that amount you will definitely lose it but I think once you’re profitable depending on your average percentage it should be a nice about
 

FXX

Experienced member
1,140 195
Everyone is right. Dont throw any money at this unless you want to lose it all. Learn to trade first then add capital.
 

georgedixon

Newbie
5 0
haha yes, that sounds a lot more sensible. If I start off small and am consistently profitable at what rate do you suggest I increase capital?
 

FXX

Experienced member
1,140 195
haha yes, that sounds a lot more sensible. If I start off small and am consistently profitable at what rate do you suggest I increase capital?
If you want your teeth in the game find a broker that allows you to trade pennies. Only after a full year of consistent profits should you think about increasing it. As to how much, do it in 10 pence increments so that you slowly get a feel of having more money on the line. Keep your 10k in an ISA until you are ready to use it.
 

Splitlink

Legendary member
10,850 1,231
haha yes, that sounds a lot more sensible. If I start off small and am consistently profitable at what rate do you suggest I increase capital?
Your margin requirement will tell you that. If you are successful the account will be increasing, enabling you to increase the size of your trade.

The new rules enable the SB company to allow the trader to lose 50% of his margin, before being stopped.

This is an extremely dangerous trap for the unwary because the account must be funded before he can trade again. Do not allow that to happen to you. Always close the trade before any margin call. It's part of your account management, which is the mark of a good trader and keeps him in the game.

If a trader has to keep funding his account regularly for this reason it is because he is a loser.

This may seem obvious to you and, in your case, it may be, but you aspire to be one of the 5% who make money out of this.
 

georgedixon

Newbie
5 0
If you want your teeth in the game find a broker that allows you to trade pennies. Only after a full year of consistent profits should you think about increasing it. As to how much, do it in 10 pence increments so that you slowly get a feel of having more money on the line. Keep your 10k in an ISA until you are ready to use it.
Thanks for your advice. Maybe a stupid question, but I was just wondering, how do taxes work with trading? I know there is probably a lot to it. But say I were trading pennies, would I have to pay tax?
 

Splitlink

Legendary member
10,850 1,231
Thanks for your advice. Maybe a stupid question, but I was just wondering, how do taxes work with trading? I know there is probably a lot to it. But say I were trading pennies, would I have to pay tax?
Simple answer---no. -You have to be a professional trader for that and it is outside my realm. You need the advice of others. It may have been dealt with on another thread.
 

FXX

Experienced member
1,140 195
Thanks for your advice. Maybe a stupid question, but I was just wondering, how do taxes work with trading? I know there is probably a lot to it. But say I were trading pennies, would I have to pay tax?
Don't worry about tax trading small. Only when you become consistent should you begin thinking about your strategy which could involve going through a spread betting firm.
 

Maviga

Junior member
20 2
trade only the 1k. take the 9k and bet on Liverpool winning the league. They have a better chance at that than you making a 1 dollar profit trading. so be wise and bet on Liverpool....
 

Splitlink

Legendary member
10,850 1,231
trade only the 1k. take the 9k and bet on Liverpool winning the league. They have a better chance at that than you making a 1 dollar profit trading. so be wise and bet on Liverpool....
Everyone knows that it has to be Manchester City (and I'm a Londoner).
 

blueshaman

Newbie
9 2
trade only the 1k. take the 9k and bet on Liverpool winning the league. They have a better chance at that than you making a 1 dollar profit trading. so be wise and bet on Liverpool....
They have never won the Premiership and will probably miss out again this season.