Swing or Position What's the Difference?

[techst]

Yeah i did go straight to CFD's. My open position would cost even more if i had dealing fees, £1-3 a day may seem alot to keep a position open. But my position size ranges from £5000-20000k. And if I keep a position open for a month on a 5k trade its costs me 30 odd pounds, but even a 1% move in the price in my favor will cover the cost and the price of a stop. This is an example in theory, but it does depend on how much capital you have and whether you leverage that capital. But of course not all my trades work out the way i would like them, so i follow money management rules to make sure i dont rip my account apart during a few bad trades. I read numerous books on short term trading and technical analysis in my first year,more recently i really enjoyed Dr. Elder Come into my Trading Room and also purchased the study guide too. I would suggest you grab this one if you haven't already. As it's a great insight into Elder's personal style of short term trading and if you fancy swing and position trading then its a great book for the style.

 

[badd boi]

I was thinking what the worst case scenario would be @ £3 /day - that's £90 /month!
I guess you'd need to find a good broker @ around £1/day.
Have you ever considered DMA (Direct Market Access) or is that even more expensive?
It's way above what I would begin with.
I think I'll start low and stay low until I gain enough experience to move up.
Thanks for the book tip, they are always most welcome.
Badd Boi

 

[techst]

I was thinking what the worst case scenario would be @ £3 /day - that's £90 /month!
I guess you'd need to find a good broker @ around £1/day". Maybe im not being clear on this. I use margin to trade, and i pay interest on the amount i borrow. That interest is a fixed percentage. So your only charged if you use the brokers capital. If you got 200000k of your own cash then you can use that, and you wont pay the interest charge. £3 a day cost on a positon size of 20000k would only take a 1% move in your favor to give you £200 - £90 for a month (for the interest charge IF you trade on margin) and £10 for the stop, that's £100 profit. Do you see where i'm coming from? Its not the broker that determines the £1 a day £3 a day it's the size of the position you put on.

 

[badd boi]

I was thinking what the worst case scenario would be @ £3 /day - that's £90 /month!
I guess you'd need to find a good broker @ around £1/day". Maybe im not being clear on this. I use margin to trade, and i pay interest on the amount i borrow. That interest is a fixed percentage. So your only charged if you use the brokers capital. If you got 200000k of your own cash then you can use that, and you wont pay the interest charge. £3 a day cost on a position size of 20000k would only take a 1% move in your favor to give you £200 - £90 for a month (for the interest charge IF you trade on margin) and £10 for the stop, that's £100 profit. Do you see where i'm coming from? Its not the broker that determines the £1 a day £3 a day it's the size of the position you put on.

Yes,Techst@,
I did understand what you said - you explained it very well !
I tried to relate it to Spread Betting as apposed to CFD'S and got muddled up with one system using 'interest' and the other using 'the spread ' to make their( the bookies) money.
My mistake totally.
Hope I've got it right now!
Thanks for continued the help.
Badd Boi