Reply to: House prices rise in June

[Moscow Mule]

Too risky for me mate.

<juvenile>

Scaredey cat. na na nana naaa

</juvenile>

[King Cnvt]

You think the value of a fund/unit trust can't approach zero?

That is what a stop loss is for - pick an amount you're willing to lose and set your stops accordingly.



I don't need to look it up, I already know it.

The problem with this is simple. Set your stop loss small, so you don't stand to lose much, and the tiniest blip down will close your position and you have lost the money.

Set it large, and you can go down the pan big time.

Too risky for me mate.

I'll settle for BTL where the gains are huge, year after year and the losses only come round every 20 years or so.

[Moscow Mule]

And all gains are tax free.

Probably the best thing about it...

[Moscow Mule]

Yes there is. Spreadbetting is leveraged. You can lose a LOT more than your initial bet.

You think the value of a fund/unit trust can't approach zero?

That is what a stop loss is for - pick an amount you're willing to lose and set your stops accordingly.

Look it up.

I don't need to look it up, I already know it.

[pickle]

Yes there is. Spreadbetting is leveraged. You can lose a LOT more than your initial bet.

Look it up.

But you CAN choose the size of your initial bet, to make it the equivelant of holding the same phsyical underlying position. And all gains are tax free.

Its obviously not for the financially dense, but for the go getting contractor its a must!

[King Cnvt]

Don't be such a scaredey cat...

There is no difference between buying a FTSE 100 linked fund or placing an up bet on the FTSE 100 with cantor or whoever.

Yes there is. Spreadbetting is leveraged. You can lose a LOT more than your initial bet.

Look it up.

[Moscow Mule]

Or put your £10K on a 3 legged blind horse at odds of 1000/1 and reap a cool £10,000,000 profit.

Easier than spreadbetting and you will lose no more than your original sum.

Spread betting, for those will unlimited money to lose.

Don't be such a scaredey cat...

There is no difference between buying a FTSE 100 linked fund or placing an up bet on the FTSE 100 with cantor or whoever.

[n5gooner]

Have you got 4 kids?!!!! Ahhhhhhhhhhhhh!!!!

well two are mine, two are my GF, my ex also had two kids (my step kids)

[pickle]

Or you could leverage your 10K to do some spread betting - IMHO a much easier way to invest in the indices.

Yep, I think finspreads require margin as low as 1.5% on the ftse.

So I can buy a cool million's worth of ftse tracker for just 15k deposit.

[BrilloPad]

Or put your £10K on a 3 legged blind horse at odds of 1000/1 and reap a cool £10,000,000 profit.

Easier than spreadbetting and you will lose no more than your original sum.

Spread betting, for those will unlimited money to lose.

writing options another great way to lose money.

[King Cnvt]

Or you could leverage your 10K to do some spread betting - IMHO a much easier way to invest in the indices.

Or put your £10K on a 3 legged blind horse at odds of 1000/1 and reap a cool £10,000,000 profit.

Easier than spreadbetting and you will lose no more than your original sum.

Spread betting, for those will unlimited money to lose.

[Let-Me-In]

Presumably if you want to avoid apples and pears, you buy a bungalow.

[Moscow Mule]

The leveraged gains on BTL can be positive, but...if you invest 10K in a house worth 100K and it goes down by 20% you have -£20,000. Yes you have a house worth £80,000 but then you have a loan of £100,000. Whereas if you plonk 10 grand on the stock market and it goes down 50% you still have £5000, which is decidely better than £-20000. ...and yes a single stock can go to 0, but then you don't invest in single shares; lets say you invest in a fund representing the FTSE 100, as far as I know the FTSE has been up and down but I've never known it to go to 0, not yet.

So basically in whatever asset category you choose you can take a high risk or a low risk. So leverage is one thing the other is what return you expect on the asset itself. I mean you can always mortgage your house and put the proceeds on the stock market.

Or you could leverage your 10K to do some spread betting - IMHO a much easier way to invest in the indices.

[BrilloPad]

The main problem with the BTL millionaires are that they must sell the property to make the cash.

Now this if fine if people sold at a steady rate/ However the first time a property show called s"elling your house before the crash" comes on they will sell in droves and this is what I think will cause the normalisation.

I reckon it will "tip" when the rates hit 6.25%

indeed - remember all the dot com paper millionaires?

[BlasterBates]

The leveraged gains on BTL can be positive, but...if you invest 10K in a house worth 100K and it goes down by 20% you have -£20,000. Yes you have a house worth £80,000 but then you have a loan of £100,000. Whereas if you plonk 10 grand on the stock market and it goes down 50% you still have £5000, which is decidely better than £-20000. ...and yes a single stock can go to 0, but then you don't invest in single shares; lets say you invest in a fund representing the FTSE 100, as far as I know the FTSE has been up and down but I've never known it to go to 0, not yet.

So basically in whatever asset category you choose you can take a high risk or a low risk. So leverage is one thing the other is what return you expect on the asset itself. I mean you can always mortgage your house and put the proceeds on the stock market.