> FAQs > Got 2k to trade. In what?

Got 2k to trade. In what?

What to Trade? and How?
Written by David

Can you afford to lose that 2k? If yes and you’ve done YOUR OWN due diligence then you might consider opening a spreadbetting account with your £2k. You can get a lot more leverage – your money would go a lot further and give you a much larger group of shares if you used spread betting or CFDs. More risky of course but not if you’re careful with stops. Be careful about the potential losses if they all turn against you. If you’re close to your computer you could trade without stop losses, but do watch it if you’re away for the day. But don’t put all your dough on one highly leveraged spread trade no matter how sure you think you are, please.

The problem with a small pot is that it’s not practical to risk 1% and pull out 500 quid a week to pay your bills. A larger pot also helps with personal liquidity so you don’t feel pressured to trade. Failing that buy £2ks worth of scratch cards and scratch them off with your mates in the garage.

Note: In practice there’s nothing wrong with trading small amounts.. If you start with say £5000 account and risk 1% or fifty quid a trade, and say make a third of that on average trade (17 quid), and do 6 trades a day, for 20 days = 120 trades a month * £17 = £2040 in first month, then add to the 5000 = 7000 so 1% for next month = 70 quid so a third each trade = 23 *120 =2760 for second month…etc…it soon builds up…

Slow and steady the way with gradual increases in sizes as pot increases…. Obviously the above is a hypothetical model, and real life is a lot harder and the above scenario may lead to over trading. Keep in mind that if you’re going in with a small pot and try shooting for quick gains you’re gonna get swings in capital that would make some people cringe. During my life I’ve had money and lost money, so I don’t worry too much about the swings.

About the author


I first cut my teeth in the Square Mile in the winter of 2002. I was young, fresh-faced and straight out of university; keen but maybe a little naïve about the way the investment world really worked… A few years ago I discover a whole new world of opportunity: spread betting on the financial markets.

Leave a Comment