Source
r/stocks•
Retardeed

Want to invest a small sum in stocks, just some details I'm having trouble understanding .

I am investing £100 (small sum I know, I am not in this for the profit but I am in this to learn and also I fully expect to lose my £100)

I was looking to do short term trades, like day trading so I was looking at CFD's like Trading212. Although I'm sure there are better options out for me other than that I can't really find any.

The main thing is leverage , say I invest £80 in two gold stocks at like 2k each due to leverage and it goes poorly, do I just lose my initial investment or do I get into debt?

Posted Jan 17, 2017, 1:01 AM UTC

08
cshat•

Why don't you do something like MarketWatch's stock game/simulator where you don't have to actually put in money if you're just trying to learn?

5
pgneal3•

I did the same thing as OP with $1000, I tried the games and paper trading before that for a little bit. But I found that once I put real money in I became way more invested, and I spent way more time reading and learning because there was real money on the line.

1
stbernardy•

Almost a 20 to 1 leverage... Bound for failure and margin call

2
Jar_O_Memes•

You would get a margin call and go into debt if you loose the margin.

1
n2yolo•

Just save your $ and paper trade.

1
Johnny_Bravo123•

With Trading 212 you can't fall into debt. Below is a quote from their website:

'Can I lose more money than my deposit? With Trading 212 your loss is limited to the amount in your account. At many brokers this is not the case.'.

1
rhoadsalive•

If you have no idea then you should stay away from CFDs or any product with leverage.

Rather take a thousand and put them into a solid stock with growth and dividend payments.

1
pgneal3•

Do not open a leverage or margin account if you are learning. Those refer to borrowed money. You don't want to be playing with borrowed money when you are first learning.

1