newbie seeks sound advice

[dart solutions]

newbie seekd sound advice

i am quite new to trading, i have about £1000 to start and at the moment i have no idea of methods / schemes/ software i would be best using

i already have a trading acount set up to buy and sell shares and i only wish to buy/sell uk shares

i would prefer to deal in "penny shares"

i have read of many different methods and had a few companies try and sell me expensive software


my aim is to make a return of about 50% in a year

if anyone can point me to a method, scheme i would be best using to analise i would be very gratefull


regards

dart solutions

 

[Skimbleshanks]

Why would you prefer to deal in penny shares?

 

[NickW]

You need more capital to make 50%. Assuming commissions of £12.5 per trade and stamp duty your first round trip trade is going to cost you around 3% or your capital before profits. Spreadbetting would be best affordable for you if thats all you have.

You will also need more time to make 50%. As a complete beginner aim for 1% growth a month - if you can achieve that then you'll have more of a chance.

However there lies your problem, even this requires you to make 4% profit on each of your early trades, which means you would be taking on too much risk. Even if you could achieve a 75% win ratio you would eventually go bust.

 

[ChartMan]

Steer clear of penny shares. There's 101 reasons why that's a good idea. They can be ramped /de-ramped. The spreads mean that just to break even the price may have to move 20%!!!! Overall they're a total gamble really. Put 10% of your pot in a share and walk away and hope...... is the best anyone can do. Stick to shares with a good daily traded volume and low % spreads- no more than 2% ish tops. Aim for 1-5% profit a month.... achieve that and you'll be top class. It's really tough out there.

 

[neil]

Follow The Yellow Brick Road

As an excercise in discipline save up ten thousand pounds before putting dosh at risk.

At present you are under funded, inexperienced and will lose the lot.

In the meantime practice on the spread betting and futures trading simulators below whilst saving to attain a realistic bank.

Spread betting intraday and being profitable is very very difficult.
Longer term maybe. Futures trading is better ( Yes I would rather pay tax on a profit).

Learn about reading charts. Look at Chartmans threads on Dow and emini charts on this board.

if you're looking to get rich quick or seek an "easy job" this is not it.

It's not how much you can win but how much you can lose ( you will work this phrase out eventually during your reading).

Don't expect the holy grail (which doesn't exist) to be handed to you on a plate for you must get off your butt and actively seek out knowledge via search facilities and other links.

Don't waste time with snake oil vendors who have a system that will drown you in riches. What happens is that the vendor of the system, course, or newsletter gets richer and guess who gets poorer?

Having said all that feel free to ask and all of us here will chip in to speed up your learning curve.



Below are two spread betting simulators:


http://www.tradindex.com/default.asp?targetPage=home.asp

http://www.cityindex.co.uk/home.cfm




Below are two Futures Trading simulators:


http://www.pfgbest.com/

http://www.ffasttrade.com


All this is my very humble opinion of course.

Good luck and bon voyage.