what is d best form of trading 4 a newbie?

grubs50

Well-known member
I just wanna know people's opinions about the best form of trading that suits somebody just starting out. Personally i have opted for spreadbetting cos of it's simplicity and lack of commisions to pay to brokers.
 

CityTrader

Established member
Personally, I would have thought the chances of you making money in the first year or two, are pretty slim, so I would avoid spread betting - as spread bets have a wide spread to cover their costs and extra gaming revenue. And all that will happen is, you may end up losing money on what could have been a winning position due to the spread.
If you're going to trade indices use CFD's. If you're going to trade individual equities use a broker. Remember with the ammount of comm you pay.. you get what you pay for.
When and If you start to make money, and the capital gains tax becomes an issue- then look at SB.

Wayno
 

rglenn

Well-known member
Spreadbets are fine to start with.

Try looking at the thread about Eurostoxxe Futures that is a great index future to trade for newbies like myself.

If you use the free information provided on these boards I can't see why you can't make some money in the first year.

I am sure I read somewhere where it is stated that you can't trade CFD until you have at least a years experience in spreadbetting or shares.
 

bonsai

Veteren member
cfd's ?
and enough margin !

keep to spreadbetting
keep to the indices
keep it small
keep records

best of luck
 

grubs50

Well-known member
i don't understand why experienced traders believe a newcomer has to lose money in his/her first year. It doesn't always have to be true 4 everybody. I'm very sure that there are a lot of newbies who started making profits in their first year so it's good to be realistic but negativity will not help anybody's confidence.
 

rglenn

Well-known member
You are right there grubs50.

I wish they had monthly futures for the Eurostoxxe50 like most of the other indices- otherwise I would be cleaning up.

I have never lost money on the Eurostoxxe but I have lost money on all the other indices.
 

del

Junior member
rglenn,

As a novice the next question would be 'what method' do u use in trading the Eurostoxx?

I have opened a d4f spreadbetting account but am cautious of the potential pitfalls.

Regards,
Del.
 

rglenn

Well-known member
There are many different ways of trading the Stoxxe but the method I use is fairly simple.

Wait until market increase or decrease by x no. of pts and then enter depending on which way it moved you enter a long or a short.

Once in the trade if the market does move against you slightly and the TA indicators states that the trend in your direction is good then add another half point or so in the same direction.

x no of points can be determined by the average increase or decrease in the index.
 

del

Junior member
Is this method/strategy based on a book, course or something you developed over time (trial and error)?

del.
 

rglenn

Well-known member
Something I developed by studying the Stoxxe movements.

I have just closed out my long position today for another days profit.

I wish all the indexes was this easy.
 

rglenn

Well-known member
Lambchops

My trades have been 100% so far but of course you will have to live with drawdowns at some stage until you get your expected profits.

Stoxxe50 futures are not traded monthly so not many trades to confirm long term viability.

A set up may go something like this.

Stoxxe future average fall over a day 40pts average rise 35pts.

During a trading day one of these figures are reached so you enter the trade long or short depending on the above.

You may find that it goes say 15pts against you so you add a small position of 1/2 a stake point to cover losses.

The trade then reverses and comes good for a profit of 20 to 30pts depending on your profit requirement.

Figures above are not actual figures just a scenario.

Don't forget to do your own research.

All the best
 

Gary777

Junior member
rglenn

Have you been trading the Stoxx with this method for very long?

Adding to a losing position sounds a bit dodgy. At what point do you stop adding and take the loss?

Thanks

Gary
 

rglenn

Well-known member
Grubs50

Check out Helenq site at I think it is at WWW.Eurostoxxe50.co.uk

Gary777

The idea behind my method is to go with the long term trend so that if it does go against you it will come back in your favour eventually.

Of course some people are not happy with large drawdowns so you could set a maximum loss if you wish and close the trade- but I prefer to let mine run back into a profit.
 

Naz

Experienced member
You only make money on a market that moves.The Nasdaq moves,it also has the best trader friendly execution package there is.The Nasdaq leads and the world follows.

T/a on the Nasdaq works like a dream.Some of the old tech inspired stocks spring in to life when the market surges.VRSN,YHOO,AMZN, some of the old names up 70%-110% since March.

If your a serious trader in the end you learn to have a look at the Nasdaq.There is no reason why new starters shouldn't look there as a place to start trading.Many brokerages offer Internet trading on all these stocks.There is nothing to say you have to be a day trader to trade the Nasdaq.
 

romany123

Junior member
Naz
I have only ever traded uk stocks and have been blindly ignorant of the nasdaq. I think it was you that said something like, it takes only a minutes foolishness to ask a question but saves a lifetime of ignorance, or something like that. So how do you go about trading the Nasdaq? what brokers exchange, rate, Any reading or websites on the subject. I only trade the uk stocks because I guess I feel safer doing it. There is no rational behind this but I guess its inbuilt to stick with what you know. I am talking about short term trading.
regards
Dave
 

Naz

Experienced member
Hi Dave,

I run 1 day 1-2-1 courses on "How to trade the Nasdaq",it covers everything you need to know.What brokers to use.What types of trading platforms are available.How to trade it with $2,000.Types of trades to look for.simple strategies, advanced strategies,level 2 direct access.How traders make $1000 in the first half hour of trading.You name it i do it.

It can be booked on line on the home page of t2w.Just book a Nasdaq level 2 course and when i get in touch with you tell me you want to do the "How to trade the Nasdaq course."

No one need be ignorant about the Nasdaq.When this market goes it'll be the Nasdaq traders that will clean up.Anyone can send me a personal message if they dont want to post.
 
 
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