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Online Share Trading

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Dear Simon

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I'm thinking of opening a futures account and maybe buying a gld contract. But i'm a bit worried about losing it all, since we know that with gearing you can lose your shirt and socks too. My question is, if I put a stop loss in place, are there any risks of something going wrong? Also, is it wise to use all my money in the futures account on a trade, or should we leave a little aside for that margin call? Thanks in advance
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15 REPLIES 15
SimonPB
Valued Contributor
you can loose more then yu put down .. the stop loss will trigger, no worries .. but will there be a buyer at your price ?? margin calls, frankly a margin call means you are wrong and youur best bet is to not pay up but rather close out .. lastly, have a look at cfd's ..
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ok, thanks, I'll have a look at CFD's. You saying they are safer?
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SimonPB
Valued Contributor
not safer .. cheaper ..
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Warrants are more volatile IMO. 20% up today, 30% down tomorrow. Did I ride the price see-saw the couple of times I played with warrants...
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SimonPB
Valued Contributor
Morfeus .. if you starting out trading then suggestion would be to start with equities and leave derivatves for some time ..
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Ok, i think thats a good idea.
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But what is a good time period to hold a share. I currently hold a few equities, and have had them for years. Some have done really well, others seem to just sit. I'm getting a bit impatient, so my question is, as a trader , what would be a good time frame, or do traders just decide on an exit point according to price?
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warhippo
Super Contributor
I dont think there should be a time limit. Keep the performers and don't fall in love and ignore your portfolio. Through the years I still like capitol growth and good div's. The rest of my portfolio belongs now to somebody else. Keep your job and strive to become the best in what you do and adabtable to change. (ala Rupert)
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Take the courses offered by Standard Bank. You have a lot to learn still, and they offer a good grounding
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asylum
Super Contributor
if you want to trade gold you can also trade it on most forex acc, the one advantage is that you cannot lose more than whats in your acc,and its also highly leveraged like ssf.
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Thanks What system do you use to trade forex? Had any success?
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asylum
Super Contributor
i use the futures on this site and i also use standardbank FX Trader which i prefer for trading forex and silver, gold, you can open a free demo acc and play around with trading and see if its for you.
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el_nino
Contributor
morfeous i think that you are rather confused. stick to one type pf investing.preferably long term trading and leave out derivatives until u feel that you are generating a sufficient return from the portfolio....
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Not applicable
Maybe do some paper trading to see whether your system is effient or not, before risking your capital. Try as much as possible to limit your school fees.
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I was a warrant lover for years up until I discovered CFDs they basically are the same with out the warrant time decay. You don't realise how time decay actually effects you!! Should you make a trade mistake and then you double up and then before the share changes direction there is not enough time and expiry hits you in the face. Too many negatives to warrant trading. I now trade CFDS only and some index waves now and then.
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