If you have a positive correlation coefficient between equities then this would be correct!(Original post by john2054)
Diversification is for noobs.
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- 10-03-2016 21:45
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john2054
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- 10-03-2016 21:58
(Original post by acontium)
If you have a positive correlation coefficient between equities then this would be correct! -
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- 10-03-2016 22:05
(Original post by john2054)
try speaking in english. divesification limits any loss, but any gains also. my point stands -
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- 10-03-2016 22:06
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 -
BarryBeTrippin
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- 10-03-2016 22:39
(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! 😀
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.Last edited by BarryBeTrippin; 10-03-2016 at 22:41. -
Axlerod
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- 10-03-2016 23:13
(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 -
leavingthecity
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- 10-03-2016 23:13
(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. -
BarryBeTrippin
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- 10-03-2016 23:16
(Original post by leavingthecity)
Erm I have been a swaps broker myself thanks. I know what I'm talking about. -
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- 10-03-2016 23:33
(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.
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. -
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- 10-03-2016 23:58
(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. -
leavingthecity
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- 11-03-2016 07:00
(Original post by BarryBeTrippin)
Not if you're only staking a % of your total bank at a time. -
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- 11-03-2016 07:25
Buy oil shares lol
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Doonesbury
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- 11-03-2016 08:28
(Original post by wyldermax)
Buy oil shares lol
Things that go down can go up.
This is why investing is not an easy option. -
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- 11-03-2016 10:04
OP, maybe start saving for a deposit on a property? That's a better investment.
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- 11-03-2016 11:37
(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! 😀 -
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- 11-03-2016 11:40
(Original post by wyldermax)
Buy oil shares lol -
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- 11-03-2016 14:55
The only thing possible to conclude from this thread is don't go to a student forum for investment advice.
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john2054
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- 11-03-2016 16:23
(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. -
midgetspinner
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- 11-03-2016 19:41
Buy ETH
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- 11-03-2016 20:46
(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! 😀
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.
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