no knowledge / some cash

[mithcol]

Hi I am new to trading online, now when I say 'new' I mean I have no experience in trading and very basic knowledge of how its done just from online research. I want to get into trading and I have 5,000 USD for practice. Basically what I am looking for is someone to point me in the right direction of what to do, and in what order to learn and read things in. I am interested in day trading. The internet is cluttered with so much information on the subject, I don't know where to start. I live in London, UK and hope to start trading some start next month.

Any guidance is greatly appreciated :)

[aiki14]

Hi I am new to trading online, now when I say 'new' I mean I have no experience in trading and very basic knowledge of how its done just from online research. I want to get into trading and I have 5,000 USD for practice. Basically what I am looking for is someone to point me in the right direction of what to do, and in what order to learn and read things in. I am interested in day trading. The internet is cluttered with so much information on the subject, I don't know where to start. I live in London, UK and hope to start trading some start next month.

Any guidance is greatly appreciated :)

I recommend you put the money in storage and paper trade until you are familiar with the way the prices move and you get a comfortable timeframe for yourself (meaning the type of trading you are best suited to, scalping, daytrading, swingtrading etc.), and I would read about technical analysis and trading methodologies until you get comfortable with a simple system again that suits your style.

We are in a period of market conditions that favor the short player, and you need to understand how the macro environment influences the trading environment, and specifically your type of trading.

The thing I believe is most important in the early stages of your trading is to manage risk properly. It will make your learning experience less costly and allow you to concentrate on developing your trading plan. Taking smaller positions, in more stable stocks, will give you a chance to do your technical analysis without the worry of being killed.

Look over the forum for recommendations of books and periodicals that will help you start learning.
Google Toni Turner for her latest book, she is a good place to start and has both technical analysis and trading methodologies in her beginner books.

If you intend to trade the european markets you may need to get specific info for them that may not be found here where we are pretty American Market centric.

Best of Luck in this endeavor