New trader keen to chat

[keithy351]

Hi traders and traders alike, I'd like to start off by saying that likely some of the questions I am about to ask are going to have you going "oh here we go again" or banging your head against your desk but bare with me

So trading has interested me alot, and at present I have been building up a small introduction fund to get myself started.

I have been on a practice account on investopia for the past few months (likely not the best to learn on being an overseas account). Ive learnt alot i feel in terms of personal learning, but i have neglected to learn the basics.

I have been trading in both stocks and forex. Forex trading for me is exciting but very very unpredictable and something I feel could easily scare me away from trading. I have also been trading stocks, my interest has been with sub $5 stocks, watching them spike and drop.

Now im looking to learn more, learn the technical side of things, and where to start in terms of opening a trading account and along with that what is available to us Australians and ofcourse would love some input on recommendations on what is a recommended place to start in australia again all of which i would really like input from you guys with.

I have been enjoying swing trading and its something I would like to continue, though I have read that to be able to swing trade with an account you need a starting capital of $25k, is this correct and can you start with less?

Another thing that i never considered is as an australian trader, how do things proceed interms of paying tax on any profits made, do you need an ABN or anything like that? do you pay tax on money that you have circulating amongst trades?

So thats about it for my first post, basically just looking where to start, maybe some suggested readings, is the type of trading I have been doing available to australians? I plan on trading quiet a few hours a day, like alot it would be great to call this a career down the line along with other investments I have interest in. To me I am just looking at making a dream come true and making a living of something I can enjoy in the future anyway that is.

Thankyou all for taking the time to read this post and i hope to hear back soon.

 

[grah33]

you sound a little like me lol

a good book... kiana danial's forex invest diva might be a good choice (had a quick browse of it, haven't read it though). it seems to have the same TA stuff that is used with share trading like moving averages, pullback setups and range breakouts. i would prefer to use the same type of setups rather then new ones that aren't used in share trading. also, it seems to have the practical stuff you need to know in order to trade, as opposed to stuff just about forex like other books do. get a book which will teach you how to do it.

maybe you should learn forex first. the forex market has gotten bigger over the years , while the stock market isn't as good. it can take quite a long time, so don't be too eager .and be patient with yourself. and learn about the jan 15th crash. trade the majors to be safe (u don't want to get into an illiquid catastrophe...)

 

[ReXXar]

Hi Keith,

How you going with your trading? Not sure where you got the info you need $25k to start "swing" trading, you can start with $1 on ASX200 CFD if you want with IG Market! Also I don't think you need to read on how to trade the Australian market as you're a momentum player, momentum is all based on price action, and price action is driven by human emotions, and all humans are the same! I used to trade futures contracts, and at one stage I used to trade indexes over 10 different international markets jumping in and out, the patterns are all the same.

 

[cynic]

Hi Keith,

How you going with your trading? Not sure where you got the info you need $25k to start "swing" trading, you can start with $1 on ASX200 CFD if you want with IG Market! Also I don't think you need to read on how to trade the Australian market as you're a momentum player, momentum is all based on price action, and price action is driven by human emotions, and all humans are the same! I used to trade futures contracts, and at one stage I used to trade indexes over 10 different international markets jumping in and out, the patterns are all the same.

Is it truly possible to trade the spi with IG with as little as $1 in the account?

Or are you talking about the minimum cfd position size, (ie. $1 per point)?

 

[ReXXar]

Hi,

I haven't used IG for a long-time, I should clarify they only do CFDs, not futures. I used to trade the $5 per point, you can also do $1 per point. The MARGIN you need more than that, can't remember how much, but if you gonna trade $1 per point I can't imagine the margin gonna be that much!

However having said this, having traded with IG for many years, I HIGHLY advise against it. I've come to the conclusion CFDs are basically a scam product for mom and dad investors who don't have enough money to trade future derivatives. They charge very expensive daily interest rates on your positions and penalises large and less frequent trades. I'm almost certain majority of the customers lose money over the long-run. It is highly unethical. I do respect the US financial regulators for banning CFDs.

In a nutshell, don't do it! If you really wanna gamble, go to casino and have some fun instead..

Is it truly possible to trade the spi with IG with as little as $1 in the account?

Or are you talking about the minimum cfd position size, (ie. $1 per point)?

 

[cynic]

Hi,

I haven't used IG for a long-time, I should clarify they only do CFDs, not futures. I used to trade the $5 per point, you can also do $1 per point. The MARGIN you need more than that, can't remember how much, but if you gonna trade $1 per point I can't imagine the margin gonna be that much!

However having said this, having traded with IG for many years, I HIGHLY advise against it. I've come to the conclusion CFDs are basically a scam product for mom and dad investors who don't have enough money to trade future derivatives. They charge very expensive daily interest rates on your positions and penalises large and less frequent trades. I'm almost certain majority of the customers lose money over the long-run. It is highly unethical. I do respect the US financial regulators for banning CFDs.

In a nutshell, don't do it! If you really wanna gamble, go to casino and have some fun instead..

Thanks for that.

I agree that the OTC CFD industry has done its reputation some disservice in years gone by. However, some providers are rumoured to have "cleaned up their act" since earlier times.

As for the casino, I'd rather contend with nefarious algorithms than half a dozen security personnel!