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Original post by acontium
If you have a positive correlation coefficient between equities then this would be correct!


try speaking in english. divesification limits any loss, but any gains also. my point stands
Original post by john2054
try speaking in english. divesification limits any loss, but any gains also. my point stands


English? That was English.... I won't justify if you don't understand finance terms
Hahahhaa axelrod, its not as easy as axelrod makes it out to be in billions (tv series) but start with virtual money which folllws live market, i reccomend trading 212 ap
Been trading for 2 years now (virtual ) I've improved and learned the basic and will soon start with the real thing
Original post by Axlerod
Ok, let's say I have £500 and want to trade on the stock market with absolutely no knowledge of it. How do I go about it? What trading platforms do I use and what kind of resources are there to better my knowledge and make more successful trades? Any help would be appreciated! 😀


@leavingthecity @jneill


OP do NOT listen to these two as they have NO idea what they are talking about.

Leveraged trading is not necessarily a bad approach if you if you are using a regulated ECN network. The broker only makes money from connecting you to the network, whereas this is not the case if you traded on with brokerage where trades are matched in an internal book, incentives are such that the broker could fill you in at different prices, front run you etcetera

Leveraged trading actually allows you to minimize risk for the same return as you would get from a greater investment, just make sure you have placed a stop loss such that if price goes against you, you will not end up being indebted to the broker.

Having said that, many brokers will close your trade out before you own them money.

I would recommend high leverage ECN scalping with very low investment.

Invest £1 at a time on 2000:1 for example, when there's a strong trend in a short time frame open and close the trade (this depends on the spread which varied during the day, ECNs generally allow for tighter spreads, but don't try this when spreads aren't in tenth of pips, otherwise scalping is less likely to be as profitable, if at all).

Once you've made a profit, wait until the next opportunity, then compound your gains etc etc

Always making sure there's a tight stop loss in place.

Chances are you won't even get to invest the whole £500.
(edited 8 years ago)
Reply 64
Original post by Keren1998
Hahahhaa axelrod, its not as easy as axelrod makes it out to be in billions (tv series) but start with virtual money which folllws live market, i reccomend trading 212 ap
Been trading for 2 years now (virtual ) I've improved and learned the basic and will soon start with the real thing

Hahahaha nah I love the show and private equity/hedge fund is the field of work I'd like to get to that's why I'm a big fan of the show. This is just something I'd like more knowledge in and maybe even attempt one day. Thanks for the advice!
Original post by BarryBeTrippin
@leavingthecity @jneill


OP do NOT listen to these two as they have NO idea what they are talking about.

Leveraged trading is not necessarily a bad approach if you if you are using a regulated ECN network. The broker only makes money from connecting you to the network, whereas this is not the case if you traded on with brokerage where trades are matched in an internal book, incentives are such that the broker could fill you in at different prices, front run you etcetera

Leveraged trading actually allows you to minimize risk for the same return as you would get from a greater investment, just make sure you have placed a stop loss such that if price goes against you, you will not end up being indebted to the broker.

Having said that, many brokers will close your trade out before you own them money.

I would recommend high leverage ECN scalping with very low investment.

Invest £1 at a time on 2000:1 for example, when there's a strong trend in a short time frame open and close the trade (this depends on the spread which varied during the day, ECNs generally allow for tighter spreads, but don't try this when spreads aren't in tenth of pips, otherwise scalping is less likely to be as profitable, if at all).

Once you've made a profit, wait until the next opportunity, then compound your gains etc etc

Always making sure there's a tight stop loss in place.

Chances are you won't even get to invest the whole £500.


Erm I have been a swaps broker myself thanks. I know what I'm talking about.
Original post by leavingthecity
Erm I have been a swaps broker myself thanks. I know what I'm talking about.


Do you know what an ECN is? All the cons you referred to about brokers f*cking with the price your trade is filled at, spread etc...do not apply for regulated ECN brokers. And leveraged trading will not wipe you out unless you have no concept of risk management, hint: stop loss.
Original post by BarryBeTrippin
Do you know what an ECN is? All the cons you referred to about brokers f*cking with the price your trade is filled at, spread etc...do not apply for regulated ECN brokers. And leveraged trading will not wipe you out unless you have no concept of risk management, hint: stop loss.


Er well there's no way your going to be able to put on a trade with a stop is there?

Point is, the fact that your levered and you will be stopped out at some point is likely going to wipe you out. End of. Way it works.
Original post by leavingthecity
Er well there's no way your going to be able to put on a trade with a stop is there?

Point is, the fact that your levered and you will be stopped out at some point is likely going to wipe you out. End of. Way it works.


Not if you're only staking a % of your total bank at a time.
Original post by BarryBeTrippin
Not if you're only staking a % of your total bank at a time.


Well you'll just get wiped out in smaller clips won't you.
Buy oil shares lol
Reply 71
Original post by wyldermax
Buy oil shares lol


MIght not be a bad idea.

Screen Shot 2016-03-11 at 08.25.15.jpg

Things that go down can go up.

This is why investing is not an easy option.
OP, maybe start saving for a deposit on a property? That's a better investment.
Reply 73
Original post by Axlerod
Ok, let's say I have £500 and want to trade on the stock market with absolutely no knowledge of it. How do I go about it? What trading platforms do I use and what kind of resources are there to better my knowledge and make more successful trades? Any help would be appreciated! 😀


If you don't know what you're doing you want to avoid picking stocks and just buy mutual funds instead.
Reply 74
Original post by wyldermax
Buy oil shares lol


Oil is low but on the rise so buying now if probably a good bet. In fact, investing in commodities is what a lot of the smart money is doing right now.
Reply 75
The only thing possible to conclude from this thread is don't go to a student forum for investment advice.
Original post by Howard
Oil is low but on the rise so buying now if probably a good bet. In fact, investing in commodities is what a lot of the smart money is doing right now.


That's what i said earlier with regards to gold. Sadly i have recently had to sell off two thirds of my gold stock in order to pay for a bribe for my wife. But she is worth more to me than gold, any day of the year!!
Buy ETH
Original post by Axlerod
Ok, let's say I have £500 and want to trade on the stock market with absolutely no knowledge of it. How do I go about it? What trading platforms do I use and what kind of resources are there to better my knowledge and make more successful trades? Any help would be appreciated! 😀


Believe me, with such small sums ,,dont get involved. You will lose your shirt big time.

Making money on the stock market involves research, timing ,guts and most of all a good chunk of wonga. As an example this afternoon i placed a trade worth £18k and did the deal in the space of 1 minute.Job done. I wouldnt even think of doing any trade unless it involved at least 2 or 3 k.
Original post by jneill
MIght not be a bad idea.

Screen Shot 2016-03-11 at 08.25.15.jpg

Things that go down can go up.

This is why investing is not an easy option.


I'd say RDSB would be a good buy at the moment. The panic over the BG deal is now over and the dust is settling. There will be savings related to offloading un-needed assets and labour from BG,the oil price is nipping up again ,,its all good. As they say,,Never Sell Shell..

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