Just as the title states, I’m new to the stock market side of things and I’m looking to find out a bit more and explore this route and see what kind of potential I feel it has and if this market clicks with me.
I’ve been putting a fair bit of time and effort into learning the Forex market so I’m very familiar with technical analysis and fundamentals from that side, just looking to see how the stock side of things compare to this so if you wouldn’t mind answering my questions below, would be greatly appreciated!
What are the top US/UK brokers for stock trade? I’ve heard that TD Ameritrade is a good one?
If I was to use £2000 to start with or even £1000 to invest in 1-2 stocks that I think look good and have a lot of good movement would you say that’s not bad or?
Are there any rules on how long you can hold shares for? for example could I buy shares late at night because I feel the price has hit bottom and will bounce back up towards a significant level next day, could I sell them next day if price goes really well? (Although I’d most likely hold for a few days as I would look to swing trade but if I feel share price is dipping I would like the option to bail out on the spot).
Last one, what would you say are the top 10 stocks to trade, ones with good movement on a daily/weekly basis?
Thanks for your time folks, any help on this is much appreciated.
As a newbie I would advise you not buy company stocks, much too risky. ETF’s are far less risky.
If you plan to trade short term as it sounds like from your post. Put half your money in SPY this is the ETF for the S&P 500, buy it and hold it forever. Then try short term trading the other half, and see which half of your account does better. Odds are your S&P fund will do better. Trading in and out of stocks is very risky and the shorter term you trade the more likely you are to lose all your money. Don’t even think of day trading,
Final note, I recently read an article that said had Donald Trump in 1987 liquidated his real estate holdings ( about 500 million dollars) and simply invested it in the SPY today that 500 million would be worth 14 billion.
If I was swing trading stocks on strong trends surely that’s a lot less in terms of risk? Stock trends run so much longer than forex trends so there’s great potential there if you’re entering the trade at the right time, I.e. dropping to the lower time frame to check small pull backs and entering at the bottom of the pull back to continue with the overall trend.
Stocks or etfs how much would you say one needs to make a reasonable income per month and per year? To go full time in trading?
I know about forex but not so much in the stock world.
Thanks again for your reply, help and guidance is always appreciated!
Let’s say you need 50K a year to live on, if you could make 10% a year on average over many years, your trading account would need to be 500K. But this is all really meaningless as until you can prove that you can trade and make consistent profits over a variety of market conditions you cannot real answer that account size question.
Here is a funny video that explains how to trade today’s market, If only I had taken this advise 7 years ago