Day Trading on the LSE

[Shanghai]

I usually swing trade FTSE shares with an average trade length of a few days and I'm happy with my results and strategies. I trade usually by spread betting. However the markets at the moments are too volatile for swing trading and it's a day trader's market out there at the moment. I've no problem switching to a shorter time frame but I tend to feel that spread betting may not really be suited to day trading. Direct access is not an option as stamp duty make day trading unfeasible.

So my question is does anyone day trade UK shares and if so how? The big advantage for me in trading UK shares is the time. Where I am located it is not feasible to day trade the US markets. I would also be open to looking at any other European markets.

 

[UKtradergirl]

I usually swing trade FTSE shares with an average trade length of a few days and I'm happy with my results and strategies. I trade usually by spread betting. However the markets at the moments are too volatile for swing trading and it's a day trader's market out there at the moment. I've no problem switching to a shorter time frame but I tend to feel that spread betting may not really be suited to day trading. Direct access is not an option as stamp duty make day trading unfeasible.

So my question is does anyone day trade UK shares and if so how? The big advantage for me in trading UK shares is the time. Where I am located it is not feasible to day trade the US markets. I would also be open to looking at any other European markets.

I have been daytrading successfully through spreadbetting. The volatility at the moment certainly helps.

Look for tight spreads when daytrading. I like the FTSE100 at the moment because through some sites you can trade for a 1 point spread. 2 or 3 points is OK too but i start to get cautious at any more than this when looking at this kind of trading as it doesn't allow you much room to move if your stoploss is also small.

 

[timsk]

Hi Shanghai,
Day trading individual equities is a tough nut to crack because of the spreads which can be huge. These are likely to vary from one SB company to the next and, of course, fluctuate according to market liquidity and volatility. Therefore, if I were in your shoes, I'd look at trading the indices. Most SB companies make the spreads as tight as possible to attract and keep customers as indices are among the most popular instruments to trade. In the 'Beat The Broker Competition' run last week by ETX Capital, I traded the DAX which had a consistent 2 point spread each day and a good intra day range providing lots of opportunity for profit. I suspect you're likely struggle to match that with individual equities.
Tim.

 

[Shanghai]

Thanks, very useful replies from both of you. I don't usually trade indices but I would be comfortable enough doing so if the spread was tight. I hadn't realy considered switching from equities so thanks for the tip. UKtradergirl when you say the FTSE 100 are you also talking about the index?

 

[options]

Hi Shanghai,
Day trading individual equities is a tough nut to crack because of the spreads which can be huge. These are likely to vary from one SB company to the next and, of course, fluctuate according to market liquidity and volatility. Therefore, if I were in your shoes, I'd look at trading the indices. Most SB companies make the spreads as tight as possible to attract and keep customers as indices are among the most popular instruments to trade. In the 'Beat The Broker Competition' run last week by ETX Capital, I traded the DAX which had a consistent 2 point spread each day and a good intra day range providing lots of opportunity for profit. I suspect you're likely struggle to match that with individual equities.
Tim.

Wot he said!

Day trading uk shares is very hard

And yes she does mean that.