Beginner - Shares, CFDs, Futures, Tradestation, need some advice

[Peter_D]

Hi all, Ive just recently joined this forum and although I've traded some shares using my bank's online broking system, I'm still very much a beginner.

I've read quite a lot about different strategies used on the market, for example programming into software, such as Tradestation and buying and selling futures as a day trader. Additionally on this forum I've read discussions about CFDs and the powerful magnification of profit/loss that they provide.

So far most of my trades have been of very small amounts in the companies ENG and ARR. Although ARR has been moving rapidly upwards in price since last Wednesday, due to the small amount of shares I purchased, the profit was quite minimal.

I was wondering if anyone could suggest if CFDs / Futures would be the way to go, or what a reasonable amount to invest would be for shares priced around the $2 mark.

Young trader today also mamaged to predict that BCN was ready for a massive rise in price and it is currently @ 39c. Since I'm very new to this and quite young also (19), I'm not sure of the signs to look for on the market (involving announcements etc..) to be able to effectively trade with the least amount of risk.

Thanks

 

[bvbfan]

Be profitable on shares before moving to CFD's

And don't use all the available leverage with CFDC's, play it as you would with shares (ie use same amount of $)

 

[coyotte]

Before you go any further why not give Nick Radge's Service ago -$55 a month.

Here you will learn how to Trade -- The set-ups and money management.
Along with Stock selections for long and short term but most importantly WHY.

Buy his book Adaptive Analysis first $30 and you will understand the service better --- on top of that there would be no need to buy any other book besides Douglas's for several years.

By doing the above you will be kicking off on a solid foundation and be light years ahead of where most traders start -- guaranteed.

As Nick's service is limited to the top 300 its ideal for use with CFDs.
If you join IG Markets you are only paying $1 brokerage per $1000 traded.
There are several possible ways to approach the position size.

1: You could stick only to the amount you have in CASH.

2: You could do as Tech/a suggests with Techtrader and for every $1000 of position size have $333 to back it up --- with a 10% STOP you're playing pretty safe --- on top of that, as this is a 33% margin you're placing as opposed to the max of 25% by IG you're hardly going to get a call.

Only trouble with CFDs your paying 8%+ interest on the total value.
But if you stick with short term trading (5-30 days) in most cases it still works out far cheaper than a broker.


Depends on your position $$$ size for the longer term.
But if you had a margin loan you would still be paying interest -- but only on the initial $$$ size.



Cheers

 

[Wysiwyg]

Hi all, Ive just recently joined this forum and although I've traded some shares using my bank's online broking system, I'm still very much a beginner.

I've read quite a lot about different strategies used on the market, for example programming into software, such as Tradestation and buying and selling futures as a day trader. Additionally on this forum I've read discussions about CFDs and the powerful magnification of profit/loss that they provide.

So far most of my trades have been of very small amounts in the companies ENG and ARR. Although ARR has been moving rapidly upwards in price since last Wednesday, due to the small amount of shares I purchased, the profit was quite minimal.

I was wondering if anyone could suggest if CFDs / Futures would be the way to go, or what a reasonable amount to invest would be for shares priced around the $2 mark.

Young trader today also mamaged to predict that BCN was ready for a massive rise in price and it is currently @ 39c. Since I'm very new to this and quite young also (19), I'm not sure of the signs to look for on the market (involving announcements etc..) to be able to effectively trade with the least amount of risk.

Thanks

Hi Pete....Firstly I`m not greatly experienced in share trading myself.I purchased my first shares (CBA @ $11.10) and have since 2004 been more active.Funny enough I read an almost perfect example of what is required (but still hard to master) on a past topic tonight.Thirsty for knowledge, you probably have already read it.Sorry, no definitive advice from me personally but a mile in the shoes of experience does wonders.


Go to General Chat..The best I`ve see on ANY forum.Post No. 1

 

[proudwanderer]

What broker account are people using to trade CFDs?

I have a commsec account - would this be ok?