Yeah ok, i don't have much knowledge about futures or CFDs. I thought that CFD brokerage was fairly high? You pay for the margin loan on CFds though don't you?
But small accounts on stocks you are almost setup to fail especially in AUS the US isn't so bad.
They may be more of a killer on shares, but not so much on CFDs or futures? AMP do $500 margins for the ES and usually around say $2.50 RT to trade it, with 1 tick being $12.50USD, literally 1 tick and you're in profit and covered brokerage? And CFDs it depends what you're trading, but usually 1 point spread and no comissions at all on indices. Doesn't get much better/cheaper.
That being said, it wasnt the reason for my demise. It just sped it up slightly haha
Well on cfd I was out of the money at around $6 when I initiate a trade and then another 6$ when I exit the trade. That is on 1 lot. 2 lots = $10 = $20 RT (for MINI CL)
I cant remember exactly what the case was for amp but im sure its more than $2.50.
Atleast 5$ RT but when you do 3 or 4 trades a day, that racks up quickly lol (atleast for a small sized account).
Wow if that's the case, you were with the wrong CFD provider! I trade the DAX on CFD and there's no commissions, just the 1 point spread, which can be better than what you get in the futs market anyway.
Whatever the commissions were on AMP, my point is with 1 tick you're in profit. But yeah not the main reason for your demise, was just replying to the previous post about needing 24% to break even.
If you're trading didn't work out because of a small account, how on earth are you going to make property work? Surely that requires a much larger outlay to begin with?!
I agree Roller.
Thingy, I am with IG and yeah, the spreads were a few ticks wide. I thought it looked reasonable as I figured that if brokerage from a broker was around $6 or slightly more per RT, then i assumed that cfd would be a bit higher?
To make things worse, I remember flipping like 3 or 4 times in one trade because I felt the market was at a cross roads but was not sure which way it would turn!
In regards to the property stuff, to be honest I wanted nothing to do with it but my dad is considering investing in property especially now that he's entering his late 50's. My dads saying stuff like the family should work as a team etc etc so i'm like well I might as well try and be useful and add value. The other part of the equation is that, if we ever do sell our house and move away from the city, then we will have a lump sum of cash and not many people at my age get to be part of some thing like that. So I need to pull my head in and educate myself about RE. Im not trying to convince my dad to do some thing like that but it's not as irresponsible as advising my dad to invest in the markets or futures. As long as you're not a complete moron and dont have the worst luck, then property should be safe enough?!
To me real estate seems a more reliable investment in a long term. It is not affected by economic turmoils as much as stock markets. Also short term rentals promise you decent returns - about 5-7% yields. Hiring a management company helps to avoid problems with finding new tenants . Its service costs 20−25% of the total rental revenue but the expenses will be rewarded with higher occupancy rates. So you just choose a one-bedroom apartment somewhere in the city center popular with tourists. If you consider overseas investments, look at Barcelona, it is a good option as it is a top-notch touristic destination https://tranio.com/spain/catalonia/barcelona/
The good thing about property is the fact that the initial transaction cost is so high. This forces you to think long term. Shares can go up and down massive amounts quickly and on the downside that effects you mentally. On the upside you feel like a king but in all honesty that is probably just luck on your side. Property is for sure less volatile. You are also basically forced to use leverage which can be good and bad, but you are forced to work hard and pay it down.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?