Re: Stocks and Shares?

And there's the rub Rachel.

Where do you think your actual money is sitting in that situation? Do you think it is in a bank account somewhere?
Do you think it is just sat in the fund you were advised to invest it in while you sit back and forget about it?

Please can I have some of your money? You can sit back and forget about it and I'll pay you back with a little bit of interest later on !!

All savings schemes, pensions etc are predicated on this same nonsense. When you give YOUR money to someone else, they just go out and make more money with it FOR THEMSELVES and give you back a tiny percentage.

Let me give you an example.

Your fund updates you each year on how much your investment has increased by. Let's say you put £1000 in that fund in January.

What happens is, during the year, the people you gave your money to go and gamble with it themselves. Let's say they invest it into a company called EasyMoney, a nice volatile company that they are familiar with.

In February the share price of EasyMoney rises from 1p to 1.3p a 30% rise. Your fund managers having used your £1000 in January to buy EasyMoney shares at 1p now sells them for a 30% profit. Nice ! The pot is now £1300.

By April the EasyMoney share price falls back to 1.1p. Your fund managers once again use YOUR money to buy more shares.

In July the share price rises again to 1.3p again and they sell again. More profit.

This process repeats through the year.

At the end of the year the EasyMoney share price resettles again at 1.1p.

What do you think your actual pot will look like at this point ?

I would like to suggest that it will show as £1100.

That is, your original £1000 from January, invested when the EasyMoney share price was 1p and then when the share price finishes at 1.1p at the end of the year, that's the 10% increase you made.

But you say . . . . what about all those buy/sell trades they made throughout the year making tons more profit . . . where is that?

That my dear, is in their pockets.

This is what happens when you give YOUR money to someone else. They make money with it because money comes to money, but they have no intention of giving the profits back to you. You will just get a pittance.

Isn't it nice being able to gamble with other people's money ?!

And if those gambles/trades go the wrong way and the share prices go down etc. Well then I'm sorry Madam but due to the financial collapse and the volatile markets and uncertainty with BrExit and the trade agreements etc etc your fund has not appreciated as well as we had hoped, sorry !

The entire financial system(s) of this country and indeed of the world are geared up to take money from the naïve and unsuspecting and to transfer it into the pockets of the savvy and largely corrupt.

Fools and their money etc.

If I walked up to you in the street and said "lend me £1000 and I'll invest it somewhere and get you a return" you'd tell me to sod off.

Put a man in a nice suit, give him a respectable looking company to work within and suddenly people start believing the fairy story. Throw in some great sounding authoritative bodies like the FSA, FCA and people think "oh ok, well they can't be crooks because they are all governed and regulated by these outfits".

Again, fools and their money.

The world is not what it was, hasn't been for many years.

Just as you MUST now take responsibility for your own health, and properly research medications, treatments, good/bad foods, natural cures etc, so too must you now take the time to learn and understand the corruption in the finance world, the way the systems are rigged against you and how you will stay poor if you foolishly give your hard earned money to someone else to "invest" on your behalf.

Take control.

It is your money.

Choose where YOU want to invest it and go and invest it yourself. It really is not difficult. Then YOU can be making those 3-4 trades in EasyMoney in the year and YOU will keep ALL the profits made along the way.

Sure it's complicated, there's a lot of confusing jargon and plenty of sharks out there, but then everything in life is hard and needs to be learned.

I realised some years ago that pensions are a huge scam and will likely turn out to be one of the biggest scandals of the century much like former Endowment Mortgages and PPI selling. I stopped putting money into my then, final salary company pension and transferred that pension into a private SIPP. They didn't like it obviously as it's money out of their pocket, but they had no choice.

Now I have what is essentially a simple bank account. It shows on my screen with a sizable pot of money in its balance. I can, at will, instantly invest any part of that, any amount in any stock or share that I see fit. If I think Marks and Spencers is going to do well I can, TODAY, invest any amount of that pension pot in M&S. I can equally sell any such shares instantly at will. Any profits go straight into that pension pot balance. Like everyone I have to pay the small transaction charge £10 for each trade that I make.

Are there any companies that you think will do well? Have you heard of FITBIT? The electronic watch/device that monitors your heart rate and associated metrics which is great for keep fit enthusiasts? Lot's of people saw the potential of that and invested, bought shares in FITBIT. The share price ultimately rocketed once the devices went to market and the company has been a huge success.

Don't get me wrong. You can invest in companies and find that they don't do well. Imagine if you had invested in BP at the time when they had the oil spillage.

But your destiny is in your hands. Your control and you get ALL of the profits instead of some 3rd party syphoning them all off.

There's plenty to learn and I'm certainly no expert, but I am learning too. What's important is that I am in control.

Re: Stocks and Shares?

Yes ... thank you

Re: Stocks and Shares?

Would you really take the advice of a stranger on the internet?

Especially one that has no qualifications to advise on financial matters?

If the answer is "yes" may I suggest putting it all on the dog in trap 3 at the next meeting at Belle Vue Dogs.

This is not a dig at Realist.

Re: Stocks and Shares?

No of course not!

I was only testing and who knows if I have money anyway?
This is the internet

Re: Stocks and Shares?

As I said most of my money is invested across several funds-and yes the weak pound has helped. But I still like a `flutter` on a single share/company-BUT that is my `fun money`-money I can afford to lose

Re: Stocks and Shares?

But he self evidently does NOT understand about 'margin calls' and such.

He said something about putting £1,000 in and that will be the most he can loose, NO that is simply WRONG when you engage in any kind of leveraged financial product the losses can and often do exceed (by huge amounts) the initial money paid.

That's where the 'margin call' comes in, as I said in an earlier post everyone should read about some of the stock markets crashes and then they might begin to see that all is not what they think it is.

What Realist has tried to explain is that CFD's and such are NOT the same as buying a share in a company. If you buy a share and go long the most you can loose is what you paid if you 'short' the share the losses can be much more Options, CFD's, etc are very dangerous for anyone not involved in the financial world.

Re: Stocks and Shares?

Thank you for explaining....I get a bit lost in Realist's epic posts....now that I understand a tiny bit more I feel the need to wish MK even more good luck.

Re: Stocks and Shares?

Indeed !

Here's an example that explains spread betting and how you are massively exposed compared to the relatively small amount you deposit and stake.

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Investing In Vodafone

Let’s say you want to place a spread bet on Vodafone shares and we currently charge a 5% margin for this market.

If Vodafone is trading at a price of 220p and you go long and place a buy spread bet with a stake size of £20 per point, the total value of your position - or ‘true exposure’ - is £3,760. (Your stake multiplied by the share value: £20 x 220p = £4,400.)

As we offer Vodafone shares with just a 5% initial margin, you can trade this market for an initial deposit of only £220.

So, although your initial deposit is just £220, the true exposure of your position is £4,400 and, therefore, if prices move against your spread bet, you could lose more than your initial deposit amount.

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So, even by depositing just £220 into an account and simply making a £20 spread bet, you stand to lose up to £4,400 if the bet doesn't go the way you planned.

MJK is planning to deposit £1000.

Like I said. He will get creamed.

Re: Stocks and Shares?

Thanks Realist.....language my simple mind can comprehend...I'd stay well away after reading that.

Re: Stocks and Shares?

Maffs, dear boy. I am pretty good at it .

Only thing I can say to you lot is, 'we shall see'.

Lots more investigating to do first. I have about 6 accounts now, and some are just dealing in buying and selling shares. I should be able to work out which will return an adequate amount.

As for risking £1000 - well, why not? Maybe just a few £100 is sufficient to test the waters come to that, and probably is. Should be fun. You can lose big time, but by the same token you can win big time too. Demo or no the same figures would have been touted on a 'live' account. For 4 days trading I made over £8000, but this was with a starting capital of £10,000. Not one of my deals failed. In fact not one of my deals have failed since I have applied the same tactics to all of my accounts. They have all made money - including the ones where actual shares have been bought. If it wasn't for stamp duty I would be that much better off with those accounts. At this moment in time I can't really see how I can lose .

Before I go 'live' I will probably have tested at least 10 companies - read all their reviews and scam stories - watched people using their platforms on YouTube, made sure money can be withdrawn without any problem and read a load of books on the subject, etc. I would have also tested out worse case scenarios by purposely over extending myself on poor deals.

I'm very dubious of Spread Betting and might well steer clear of it entirely, but if do risk some money I will make sure I can handle the worse case scenario if everything goes pear shaped.