Hi everyone.. first of all I'd like to note that I am a beginner. I am 20 and I have been looking into trading for a while. I've read a lot of stuff on FOREX and I've read stuff on stocks and options. In total, I've probably been studying various strategies and such for about a year or so on a consistent basis. So, although I'm not a complete newbie, I have never actually made a trade. So, in terms of experience, I am at ZERO.
anyway.. So.. I am a student, and being a student I don't have too much money to put towards such investments.
First of all I would like to ask about CFDs. I understand you can get leverage of upto 20:1, and they have cheaper brokerage fees than stocks. Do brokers (eg comsec) give margin to ANYONE or do you have to jump through some hoops before they approve? Would you recommend CFDs over stocks to a newbie with little bankroll?
Secondly I would like to ask about bankroll. Realistically, how much would I have to have as bankroll to get going in either stocks or CFDs to appropriately account for risk? Sometimes I hear to have 2% risk, sometimes 5%? so what would you recommend? also considering the brokerage fees which are quite expensive from a student's perspective. Should I save up $1000? $5000? $10,000? more?
Finally, a question about options. I understand that traders must become approved to make various trades in options. Would they ever approve an inexperienced newbie such as myself to trade them?? How much experience/education must one have for a broker to approve one for trading??
Thanks a lot everyone.. by answering my questions you are helping me develop my life plans for the near future.