Australian (ASX) Stock Market Forum

Relatively New Trader - Seeking Advice

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Hey guys,

Just seeking a little bit of information and advice here. I am a student who has 5k spare, in which i want to invest. What i wish to do is place 3k into blue chip stocks, and with the remaining give day trading a whirl. I understand it isn't a lot to start with, and I am not seeking advice regarding I shouldn't be doing this. This is happening, i want to learn.

My biggest issue right now is finding a broker. I day traded recently using ANZ Etrade, and saw my profits get eaten up in commissions (2 Hours - $105 profit - $40 brokerage fee = :l). So in that light i have been looking for a new broker and have narrowed it down to three.

Brokers of choice:
OptionsXpress
Interactive Brokers
CMCMarkets

Now regarding OptionsXpress, i am not sure if they are chess sponsored. If somebody could tell me I would appreciate that greatly. Considering I am holding 3k of my 5k, chess sponsorship would be the way to go, unless directed otherwise.

In summary, I am in search for a broker in which i can hold a good 75 - 80% in blue-chips, and 20 - 25 % day trading. What broker would be best suited for me?

Also regarding books, there are a ton out there, what would best suite somebody starting out? Something that would teach you analysis, risk, etc. Looking for a book with information not stories.


Cheers guys :)
 

tech/a

No Ordinary Duck
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IB are not chess sponsored
IB need about $12k min
IB are cheapest.

I'd borrow what you need to open an IB account
Once opened get the sim trading platform loaded.
Withdraw the funds you borrowed to open the account
And trade to your hearts content using IB's sim platform

Best and cheapest education you'll ever have.
Don't trade until you know how to!
 
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IB are not chess sponsored
IB need about $12k min
IB are cheapest.

I'd borrow what you need to open an IB account
Once opened get the sim trading platform loaded.
Withdraw the funds you borrowed to open the account
And trade to your hearts content using IB's sim platform

Best and cheapest education you'll ever have.
Don't trade until you know how to!
+1 for IB, good advice for withdrawing after opening.

Disagree with SIM being best education. It's good but you don't experience the emotions of seeing your real money fluctuate. You're a student not a retiree - take that 2k and trade it and (probably) blow it early - better lesson there.

What are you trading ? You mention CHESS which is ASX but you also mention OptionsXpress which does not trade ASX so I still confused what you're trading. Are you in uni or high school ? Do you have time in the day or night to day trade ?

I am jealous - you have the smartphone these days. When I traded in year 12 I locked myself in the toilets at lunchtime to phone my orders in (mobile phones are banned during school hours).
 
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+1 for IB, good advice for withdrawing after opening.

Disagree with SIM being best education. It's good but you don't experience the emotions of seeing your real money fluctuate. You're a student not a retiree - take that 2k and trade it and (probably) blow it early - better lesson there.

What are you trading ? You mention CHESS which is ASX but you also mention OptionsXpress which does not trade ASX so I still confused what you're trading. Are you in uni or high school ? Do you have time in the day or night to day trade ?

I am jealous - you have the smartphone these days. When I traded in year 12 I locked myself in the toilets at lunchtime to phone my orders in (mobile phones are banned during school hours).

Thanks for the replies. Yeah ahaha i do plan on buying a tablet this week now you mention it ;p. Lets leave optionsexpress out of it then, i assumed because they had an office in Australia they traded Australian securities. That is my misinformed mistake. I would be holding and day trading stocks.

I am currently heading into University as a first year, I am 20 years old which allows me to open an account with IB with a lower minimum. Pretty sure it is 3k USD from memory. My understanding is IB is used solely for day trading. I want to split my portfolio 75% blue chip holdings to 25% day trading (not holding). From what i have read here IB is not a broker you should hold stocks with for a long period of time. IB also doesn't hold the securities one purchases in their name. Should i still open an account with them? Or is there better alternatives that suit my needs.

Also just reminding those who are reading this thread, i am really open to suggestions on good books to read! Information and guidance not story telling!
 
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Im pretty sure everytime you sell a stock with IB and most likely every other brokerage firm regarding equities, you have to wait 3 days till the cash clears. Depending on the frequency of your day trading you will miss alot of oppurtunities but if your capital is increased then you could possibly avoid this by having more diversification etc.
 
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No margin account for trading equity in IB only futures, So settlement T+3 way too long for your capital. I would suggest open a Forex account, less capital required you can deposit like $100. Put all your other money in a saving account build up your capital up, while learn to trade.
 
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Hey guys,

In summary, I am in search for a broker in which i can hold a good 75 - 80% in blue-chips, and 20 - 25 % day trading. What broker would be best suited for me?



Cheers guys :)
How about using multiple brokers? Use your etrade account to hold your blue chips, and open a CFD account like CMC or IG or FP Markets etc to trade ASX CFDs with.
 

pixel

DIY Trader
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I am currently heading into University as a first year, I am 20 years old which allows me to open an account with IB with a lower minimum. Pretty sure it is 3k USD from memory. My understanding is IB is used solely for day trading. I want to split my portfolio 75% blue chip holdings to 25% day trading (not holding). From what i have read here IB is not a broker you should hold stocks with for a long period of time. IB also doesn't hold the securities one purchases in their name. Should i still open an account with them? Or is there better alternatives that suit my needs.
When you're talking about day trading, do you intend to swing-trade several stocks per day?
Or pick one stock that has sufficient volume and volatility for a few snips a day?

If the former, brokerage would be a concern, and you might want to look at someone like CMC.
If the latter, you might like to consider "number of trades per contract note".

Let me explain:
I can take up to a dozen bites: same share, same direction, same day, and only pay one low brokerage on the Total. Using the chart below as an example, I could have bought, say, $2,000 worth of shares at every one of the six candles marked "B" and sold them at "S"; if the average swing was 2%, the profit would have been $240 minus brokerage. The broker I'm using would bundle the 6 buys, charging only one minimum ($13.95) brokerage on the entire $12,000 bought, and another minimum brokerage on $12,240 worth of sales. Better still, I can buy those $12,000 worth, even though my account balance never has to exceed $2,013.95. That is because the "available cash" is instantly updated as soon as a buy order has been placed or a sale has been executed. In the example, my exposure (money at risk) never exceeded $2,000 plus one brokerage.

1-minuteSwings.gif

PS: I don't trade on margin or CFDs; therefore, my broker may not appeal to you. I only used the example to explain the principle.
 
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+1
IB are cheapest.

Dont trade before you know what you are doing!!
:behead:
 

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