Trading frequently to make a small bit extra - can it be done?

A

Apollo

Registered User
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Hi Folks,

First time posting on this area of AAM.

I have come across these online trading courses one can do relatively cheaply.

My SSIA matures in 3 months & I'm thinking of placing about 5k into equities.

The idea I have was to regularly trade, using an execution only broker, and net circa €100/week after all costs, i.e. 2% of 5k.

I don't expect it will take up a lot of my time & as well as that I know someone in the industry who will give me tips.

Does anybody know anyone who does this on the side or am I being naive?

rgds
 
Frequent share trading is indeed a moneyspinner - for stockbrokers and other middlemen, but rarely for the trader. Commission and other costs will mean that the odds are stacked against you even before you start.
 
Cheers Ubiquitous for that.

If I opt for an execution only service though will this not drop the commision rate charged by brokers etc?

Or even if it does drop the commission rate would it still make it impractical?
 
I don't expect it will take up a lot of my time & as well as that I know someone in the industry who will give me tips.
When trading, you're up against pros who do it every day and you expect to earn returns of 100%+ pa without even giving much of your time? I don't think so. As for tips, anyone who knows anything about trading will tell you that acting blindly on the tips of others is no foundation for trading success. I know lots of people 'in the industry' who love to give tips. If I acted on them, I'd be broke by now. Remember, those who work in the industry - brokers, analysts, etc - do not know more than the market. They are the market.

...am I being naive?

Afraid so. You can earn good money trading, but it's not easy and most wannabe traders lose big time. If you're serious about trading, take the time to read some of the trading books mentioned in this thread
http://www.askaboutmoney.com/showthread.php?t=34876&highlight=books+rich+dad

BTW, even if you read all the above books and become a regular market wizard, your chances of decent returns are still almost nil if you opt to trade the Irish markets - the commissions will eat you up. Look stateside instead.
 
dv8 said:
Cheers Ubiquitous for that.

If I opt for an execution only service though will this not drop the commision rate charged by brokers etc?

Or even if it does drop the commission rate would it still make it impractical?
Click to expand...

Hey would you look at that - you seem to have two names... Apollo and dv8

Not only that, you sometimes engage yourself in conversation:
http://www.askaboutmoney.com/showthread.php?t=36841

Isn't that the strangest thing.
 
Caught red handed & guilty as charged exile!

Forgot my original un & pp so created another but then discoved this info later on!

There was another person using my un that day.

Mystery over.

Hope the suspense didn't kill you 007!!
 
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