Pit Village Trader
Be happy. Trade well.
With £100 to £500 to trade , would you be restricted to stocks of 200p and under.
katie hi, no, you wouldn’t. if you’re spread betting, you ‘bet’ on the movement in points. eg. you would bet £10 per point that a stock with a share price of 350p moves up. For each point above 350p that the share price rises to, you’d ‘win’ £10.
if you’re buying shares (as in stock) to put in an ISA or SIPP or whatever, you are of course limited somewhat by the price of the share
Ok thanks , be interested to know what stops you use on different size of small accounts , such as £100 , 500 and 1,000 and % of your account fund., I heard that pro traders use 2% of their funds with a 2% stop per trade and a limit 3 times the stop. With spreadbetting I was thinking of a lower stop on the first day of trading , say 1% for a day trade , then 2% for a swing trade.
i found that with small accounts the % risk had to be higher. i used to use 5% per position. i blogged about it in this post and also more related to small account trading here.
with regards to different % for day vs swing…don’t overthink it. keep it simple, 5% per position, close when you think it needs closing. there is no ‘winning’ system. but you can simplify your own mental battles by removing the need to hold onto too many variables for each trade.
just keep it as simple as you can within your own ability.
Thank’s Lee , am going to take your advice. I have done all the beginners mistakes, started with £1,000 went down to £500 then up to £1,500 back down to £250 now.
Done it all, knew what i should have done , same old story greed , boredom, panic and fear. You loose a lot on a trade and try to get it back by doing a risky trade.
Placed my first bet with a fund of £100 ,,£5 per point ITV @ 174.87 on the 28th July. stop 2% , limit 4%.
Closed @174.63 , loss £1.20 for a day trade.
Comment’s: Weak trend & no momentum.
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