Hi Folks, my name is Mike and I'm very new to shares. I have bought ten different stocks over the last few months and have a nearly doubled my initial stake But there are lot's of things I don't understand.

1.) How do people buy before the market is open? - I have spotted lots of shares, I have researched over night or over the weekend, that if I had been able to buy at the closing 'ask' price I could have profited on but when I try to buy the next morning, the price has already shot up before the market opens???

2.) How much tax is paid on profits and how does the taxman know how to claim the tax?

3.) What is 'level 2'

4.) What do all the abreviations mean , such as IMOH and DYOR

I don't have lots of money and am not trying to make a million, but a few quid towards that rainy day would be nice. Any help would be much apreciated.

Regards,

Mike.

micgwit.
Level 2 Try, http://www.ftsedow.com/ta/ta.htm#level2
Taxman You should declare profits as income on your annual return. Spread betting is treated as gambling and is not reckoned to be liable to tax.
IMO In my opinnion
DYOR Do your own research
D.

Mike
if you are doing that well and continue to do so i suggest you employ an accountant to deal with your tax return. mine costs 450 a year but its the best money i ever spent. partial closures of trades, 30 day rule,etc, its a bloody nightmare.

continued good luck to you.

ps
you can buy before the markwt is open as long as there is a market maker open. just ring your broker and ask.

Crocodile, isn't it capital gains not income (with different allowances and abilities to offset costs between the two), unless you are trading a considerable amount?

Jumpin
Correct it is capital gains.
Thanks
D.

Hi Mike,

1. The Market Makers are obliged to fullfill BUY or SELL instructions from Stock Brokers on demand. If a company has been tipped in the weekend press, or has issued a positive statement outside of trading hours, the stock price will move up before anyone can buy in. Far from being unfair, the Market Makers are simply reacting to the news before the market opens, instead of in the seconds after the open. The price will be adjusted regardless. It is a Market Makers duty to ensure that there are enough sellers to satisfy buyers, and if a newspaper tip or announcement has altered the balance, a re-assessment of the price is quite a reasonable course of action.
2. Whatever you must declare by law on your annual tax return. Bear in mind, if you are a frequent day-trader you can be perceived by the Inland Revenue as being self-employed with a primary or secondry occupation and stream of income and thus pay tax at income tax rate bands. If you are an infrequent trader you will have to pay Capital Gains Tax on your profits over and above CGT free thresholds. To limit potential income and capital gains tax liabilities try trading under the umbrella of a self-administered ISA and or go off shore. Alternatively do Spreadbetting. You will not freely get advisory/help service from an accountant without paying through the nose for it, although they may still save you a fortune. Accountants fees of around 450 per annum is really only enough for them to audit your books and submit your tax return for you.
3. Level 2 is better intraday trading information at a price.
4. DYOR

Mike,

I don't which area you live, but there are lots of regular meetings arround the country where people get together to talk, ask questions and learn. Some will know a lot, and others will know very little. Try and go to some of these meetings.

Hiya all - any meetings arranged for East Sussex (Brighton / Eastbourne / Hastings, etc)?