Trading the stockmarket (NO Referrals)

Caporegime
Joined
29 Jan 2008
Posts
58,899
I don't know much about shares, but for every winner must there be a loser?

if you're ignoring dividends or looking at something like futures, options etc.. then essentially yes, ignoring commissions the total money won and total money lost equal each other... thus some might say it is a 'zero sum game'

if you include commissions then it becomes a less than zero sum game - with less money taken out in profit than put in in losses

though with shares you've also got dividends which changes things significantly... technically you'll get short term price changes around dividends but in the long run they'll have an impact and IMO it isn't a zero sum game
 
Caporegime
Joined
29 Jan 2008
Posts
58,899
seems pretty dubious either way, I'd close the account tbh...

interactive brokers would likely be a better option IMO

or possibly degiro
 
Associate
Joined
17 Jul 2011
Posts
2,079
I've got 'The Naked Trader' by Robbie Burns and 'How to Make Money in Stocks' by William O'Neil, any recommendations on which to read first?
 
Associate
Joined
27 Aug 2009
Posts
712
I've got 'The Naked Trader' by Robbie Burns and 'How to Make Money in Stocks' by William O'Neil, any recommendations on which to read first?

I have only read NT. It is pretty good, very basic. Nothing beats learning from your own mistakes though. Those are the lessons you never forget!
 
Associate
Joined
17 Jul 2011
Posts
2,079
I have only read NT. It is pretty good, very basic. Nothing beats learning from your own mistakes though. Those are the lessons you never forget!

I'm sure I will, but I need to learn how to make those mistakes first! :D NT seems more entry level and is probably an easier read based on the first few pages of each, so I'll start with that. Intending to read both of them anyway.
 
Associate
Joined
27 Aug 2009
Posts
712
I'm sure I will, but I need to learn how to make those mistakes first! :D NT seems more entry level and is probably an easier read based on the first few pages of each, so I'll start with that. Intending to read both of them anyway.

Good luck! My best advice would be to read thoroughly, understand the basics, eg know what the spread is blah blah. Research your investments, try to leave no stone unturned. Write down why you are buying a share, and when you will sell if thing go bad or good. Stick to your initial plan and that removes the emotion from the equation. Emotion will make you crap at investing :) Trust me!
 
Soldato
Joined
16 Jun 2005
Posts
23,976
Location
In the middle
I'm thinking of putting some cash into tracker funds, passive investing. Would it be better to stick, for example, 10k in two different funds, or 20k into one fund?
Or, 15k with an ISA wrapper and increase it to 20k next year?
 
Thug
Soldato
Joined
4 Jan 2013
Posts
3,783
P.s anyone in options trading? Bit of a departure from where im atm, but a client recommended me the role. Seems pretty interesting and the renumeration is okay as well.

Any one got any opinions on this as a career?
 
Associate
Joined
11 Dec 2009
Posts
1,603
I'm thinking of putting some cash into tracker funds, passive investing. Would it be better to stick, for example, 10k in two different funds, or 20k into one fund?
Or, 15k with an ISA wrapper and increase it to 20k next year?

I'd max out your ISA using a Stocks and Shares account (e.g. HL). If it were me I'd take a look at "lazy portfolios" for the UK; for example:

http://monevator.com/9-lazy-portfolios-for-uk-passive-investors-2010/

http://monevator.com/asset-allocation-types/
 
Associate
Joined
11 Dec 2009
Posts
1,603
I didn't like the NT because it was very casual, and had a bit too much fluff. I think it was written this way to keep people interested as they read it, but I prefer dry investment books.

If you have it already it's worth a read.
 
Caporegime
Joined
29 Jan 2008
Posts
58,899
P.s anyone in options trading? Bit of a departure from where im atm, but a client recommended me the role. Seems pretty interesting and the renumeration is okay as well.

Any one got any opinions on this as a career?

can be a bit hit and miss - are you talking about one of the options market making firms in London/Amsterdam? Generally you'll have a few rounds of interviews involving a bunch of different tests - you'll need to be quite quick with mental maths i.e. can you do something like 0.73 * 256 in your head within a few seconds, under pressure, in an interview. They'll want you to have at least a basic understanding of options too.

I was at a futures trading firm then interviewed at an options market maker, got through all the various stages and fluffed up the last interview - just didn't get on with the senior trader.

Do be aware that lots of those firms are hiring all year round - they have thousands of applicants, once they've filtered them through the crude and rather competitive testing then most of them will only last a year or two anyway... having said that if you do last at those sorts of places for a few years then you can do rather well for yourself. If you don't last then some trading experience is useful to have on your CV anyway.
 
Back
Top Bottom