Ok, here goes.. I know very little about trading, just been following the precious metal prices for a month or two and playing on paper. So far this week I have made 7k, or I think I have. Right, I suppose you buy low and sell high. Done that allbeit fictionaly, and I'm sat here thinking this is taking the p..s. So, whats the catch. Can someone please tell.. bearing in mind that honestly I know nothing about the ins'n'outs of trading. I'm sitting comfortably, so you may begin.....please
bently said:
what to do with 50k sterling = give it to me...
so you have made 7k on paper, and think ows this is ok do this each week, yup...... stand back what would have you done if you lost 7k, for that week and the next 3 weeks ono the trot?
nothing is for nothing in this world
donaldduke
Experienced member
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Bently,
How much of your account (on paper atleast) were you risking on each bet?
If you were making big bet(s) then you can make in reality 7k in a week, but you run the risk of being
wiped out very quickly too.
Heres an old article about someone who thought they could make 1000s after paper trading and then
tried it with actual money only to find out in reality it aint that easy. This person was spread betting but
the same applies to other types of trading:
http://www.fool.co.uk/Bribble/1998/Bribble980304.htm
How much of your account (on paper atleast) were you risking on each bet?
If you were making big bet(s) then you can make in reality 7k in a week, but you run the risk of being
wiped out very quickly too.
Heres an old article about someone who thought they could make 1000s after paper trading and then
tried it with actual money only to find out in reality it aint that easy. This person was spread betting but
the same applies to other types of trading:
http://www.fool.co.uk/Bribble/1998/Bribble980304.htm
donaldduke said:
Thanks. Interesting reading. Lumped 50k on palladium at 5.34 am monday (uk) at $193/ oz. Decided that i would sell at $2.00 (if it got there). Off to work. Came home, flicked the computer onto Kitco to see that it shot up to $210.00. Reached $2.00 at around 2pm uk. So, who does the buying and selling for me and how much do they charge for the privalige, even if it's possible to trade that way.....
Yes trading is really that simple, however 1 or 2 good traders does not mean you will make it in the long run
see first steps for basic info and download some spreadbetting brochures as they have simple examples of trades
You can spreadbet which is commission and tax free (but pay a wider spread) or use futures with lower spreads and pay a commission.
You have to decide what sort of trader you are going to be, short term intraday or longterm, if you are working probably the latter.
In your example you could have placed a buy order at $193 and then a limit order at $200 which when hit would close the trade and cash in your profits
see first steps for basic info and download some spreadbetting brochures as they have simple examples of trades
You can spreadbet which is commission and tax free (but pay a wider spread) or use futures with lower spreads and pay a commission.
You have to decide what sort of trader you are going to be, short term intraday or longterm, if you are working probably the latter.
In your example you could have placed a buy order at $193 and then a limit order at $200 which when hit would close the trade and cash in your profits
juanbyte said:
Thanks juanbyte, I think I need a glossary of terms and phrases, spread? intraday?, think I can work out longterm... How do I go about finding out how to place an order and who with. No advertising allowed on here I assume. Where do I find someone to do my dealing for me?
This is'nt a wind up, I am just very 'in the dark' about trading. To be honest, I'm a plumber who has had enough of cold winters on building sites. And don't believe everything you see on the TV, the only plumbers making fortunes are the ones ripping people off. Thanks again, Bently.
Bently
Did you click on the first steps link in my original post, lots of info there.
Visit Capital Spreads download their brochure it gives simple examples of trades.
You can also open a free demo account to get used to the trading platform.
When you trade there is a difference between buying and selling price, this difference is the spread.
Search this site for terms that you are not sure of.
Any questions just ask
Did you click on the first steps link in my original post, lots of info there.
Visit Capital Spreads download their brochure it gives simple examples of trades.
You can also open a free demo account to get used to the trading platform.
When you trade there is a difference between buying and selling price, this difference is the spread.
Search this site for terms that you are not sure of.
Any questions just ask
Racer
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bently, would you have actually 'placed' those trades in reality? What would have happened.. would you have watched every pound lost and got scared, thought about it going wrong, been able to leave it ? Not had the shakes? Been scared of losing your money cos it moved a tiny bit in the wrong direction and the size of the trade meant you were losing so much every time you looked at it?
Can you look at it with a cold eye? Not be scared and make the right choice whether to stay in the trade or get out on a loss cos it is going wrong and you need to grab your money before it all goes?
Can you look at it with a cold eye? Not be scared and make the right choice whether to stay in the trade or get out on a loss cos it is going wrong and you need to grab your money before it all goes?
zigglewigler
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If you have 50k to play with from the start, you're at an advantage, play leverage, play longer term. Most of us traders start with too little capital, and chase a few pips on a very short term basis, opening and closing within minutes or seconds, a game for chumps with spreads against you. There's also too much market noise to contend with. Definitely look for medium to long term trades, forget intraday, you have enough capital to make say 500 point returns per trade over say 4 to 6 weeks profitable enough. Three years on I look to hold positions for weeks, the lack of spread value becomes insignificant, when you can trade only a few pounds per point, you are not inclined to wait for the market to come to you, hence why so many daytraders disappear. Chasing quick returns and playing the odds game will clean you out.
Of course there will now follow a whole host of replies to suggest that I talk through my behind, but this is my experience, I don't feel intimidated by the market, I calmly wait for the juiciest morsels, it pays so much better.
Of course there will now follow a whole host of replies to suggest that I talk through my behind, but this is my experience, I don't feel intimidated by the market, I calmly wait for the juiciest morsels, it pays so much better.
Bently .. you say ... Lumped 50k on palladium at 5.34 am monday (uk) at $193/ oz .. I think this must have been a misquote as palladium has not been below 200 since January .. If you need prices in it most spreadbetting companies will quote you .. its generally a $3 spread on the futures contract (current one is Dec04). Palladium tends to be a real "sleeper" and often mirrors Platinum but with a lower Beta (lower percentage move) until it breaks out on a chart and then it can really move. Its been a nice contract for me when it broke up at the beginning of the year but has just been ranging for last few months .. has alot of long term support here (200 area) but would only look to buy it when it breaks above 230 or if Platinum got to its old highs.
Peter
Peter
