bosley
- 20 Feb 2004 09:34
Chiva20
- 19 Apr 2005 15:13
- 3110 of 27111
Driver, looks like my birthday has come early ..
bhunt1910
- 19 Apr 2005 15:18
- 3111 of 27111
I am being quoted 21 for 50,000 on Barclays SB
You can also get 21 for 100,000 on a limit order
Baza
jimmy b
- 19 Apr 2005 15:20
- 3112 of 27111
Naughty Naughty,we don't mention his name on here,he's nearly faded away..JB..
Biscuit
- 19 Apr 2005 15:23
- 3113 of 27111
Cheers Baza
bosley
- 19 Apr 2005 15:28
- 3114 of 27111
baza , just opened an account with barclays. i would be very grateful if you and eric , and anyone else who has experience of cfds, would email me with a step by step guide on dos and donts, ( me being a virgin ). thanks in advance.
ssanebs
- 19 Apr 2005 15:32
- 3115 of 27111
insider
why is the price going up. Strange?
bhunt1910
- 19 Apr 2005 15:43
- 3117 of 27111
Lets hope those shorters are feeling the heat ??
Baza
Jacks
- 19 Apr 2005 15:48
- 3118 of 27111
Sorry everybody. Should not have asked him any questions, I like you would rather him steer clear of this BB.
bhunt1910
- 19 Apr 2005 15:50
- 3119 of 27111
Bos - I think the biggest DO from my point of view s to watch your position like a hawk and never go away leaving an open position. The great advaantage of a CFD is that it can make you money 10 times quicker for the same outlay (or 5 times quicker in the case of SEO as the Notional Trading Requirement is 20% instead of 10%) BUT the big Risk is that if it goes against you - You will loose money 10 times quicker(5 times for SEO) - so you just need to keep a sharp eye.
Also if you are short and a dividend payment is due - you end up having to pay the dividend, similarly if you are long - you will receive it.
Plus I understand it can be painful financially if you have an open position and a rights issue is declared. Not sure I understand that one yet - but just be aware that any corporate action might hurt.
I bought my first CFD in SEO at 15 which is nice - but equally I bought a CFD in NLR at 530 - not so nice.
Good Luck - but be careful
Baza
Chiva20
- 19 Apr 2005 16:08
- 3120 of 27111
Wise words Baza, I'm a big fan of CFD's but they need constant religious attention. Much prefer them over traditional share buying & selling as the returns can be pretty amazing. To date I've not had one blow up in my face (luck rather than judgement I'm sure), however I'm know it will happen one day, as soon as I get cocky no doubt! All depends on the amount your prepared to lose so I would avoid the volatile stuff no matter how tempting. Great for relatively safe stocks like SEO.
Hope I'm not teaching you to suck eggs here, I'm very new to this (& love it), this is just a snippet of what I've learned.
bhunt1910
- 19 Apr 2005 16:21
- 3121 of 27111
Suck Eggs!!!- I have been trading CFD's for at least -ooh let me se - 4 weeks or so - so I have lots of experience - NOT. Am therefore a bit of a novice - so am treading carefully until I feel I fully unsderstand them.
I suspect Eric or GF are the experts
Baza
bhunt1910
- 19 Apr 2005 16:36
- 3123 of 27111
Driver - you can set stop losses - which means they will sell in the market as soon as the price hits the price you set - but if the price is moving fast - you may end up getting a price a lot lower that your stop loss
or
you can set a guaranteed stop loss - which means that you are guaranteed to get the price as soon as it hits it - and the stockbroker takes the risk. Each option costs a little bit more than just a straight placing.
I also gave out incorrect info last time - I said that deals were made at a fixed pricce of 17.50 - this was wrong - they are made at a cost of 0.15% with a minimum of 17.50 - apologise for that bit of misinformation.
Hope that helps
baza
Chiva20
- 19 Apr 2005 16:37
- 3124 of 27111
Very true. You actually made me laugh there driver! Just to add to Baza's comments, even though it is pricey to go guaranteed stop loss I'd stick with them. Much better - you know what you're risking - always best.
bosley
- 19 Apr 2005 18:38
- 3127 of 27111
cheers for the advice fellas. nice to see the price push up . and we have a new pope. all is well.
chiva, baza, guaranteed stop losses are for girls!!!!:)
EWRobson
- 19 Apr 2005 21:06
- 3128 of 27111
Well, perhaps chiva, baza are girls. Mind the girls like dynamite, moneyplus could have more guts than many of the fellas - at least they have savvy, nose, whatever.
bos, feeling wiser? Perhaps gf is an expert but I am still on the learning curve afer coming up six months. I've twice been up 300%, then back to break-even; at present up about 100% with losses on NLR, YOO and BGT offsetting my SEO gains. Lessons learnt (so far):
(1) Be certain that the upside:downside risk is at least 3:1. Obviusly I am down on the 3 positions quoted because the whole market has moved down and you need to take that into account.
(2) Keep a positive cash position so that you can unwind if necessary. Keep a positive open position ( a bit more technical) with something to spare.
(3) I am keeping SEO open for the duration. But generally, set your target and close the position when achieved.
(4) Accept that the advisor is paid commission on deals (as any broker) so take his advice with a pinch of salt.
(5) Only start in the first place if you are comfortable with risk - which means that you can lose more than the stake you have put in.
In the end of the day, the big advantage is the multiplier effect (the bigggest disadvantage can also be the multiplier effect). If I have 5K to invest in SEO in the market, then I can buy 24,000 shares. Or I can take out a CFD for 120,000 (5:1). Lets say the shares go up 20%, then I could take some profits by selling the shares. With the CFD my open position is up 100% or 5K. I can re-invest that without closing the CFD. I could buy more SEO - that is called building a pyramid and is mega-risky. But remember, the higher the risks, the greater the reward (if I had done that with SEO I would be able to retire if I wasn't already retired!).
Eric
andysmith
- 19 Apr 2005 21:17
- 3129 of 27111
Driver, Donny sounds OK for an SEO gathering, just up the road from my home town. Maybe we could tie it in with a Day At T' races as apparently we have taken the biggest gamble of our lives investing in SEO. Must have been mad buying a no-hope share from 4p!!! DID WE DO OUR OWN RESEARCH, like good boys and girls and did we have the audacity to believe this COULD be a winner, no!!.
Wait, hang-on, is that the folks with white coats at my door right now??? What, I've been conned by SEO RNS's into making a clucking big profit!!! and there's more to come!! and t' bloke from Asda is a lying twat as well, thats it I'll shop at Tesco!! What, there's more!! your joking, Concorde wasn't supersonic after all, it was Ultrasonic!!! but the supersonic makers nicked the patent and business first in an act of utmost deceipt and it should have failed and I can read all about on the internet at plonkertalkingshite.co.uk
To quote Jimmyb, Shares can go up as well as down.