Forum Replies Created
- Originally posted by techa:
A favorite topic of mine.
Ok.
Margin is possible on stocks allowed by the Margin lender (I use BT–Bankers Trust)Oh by the way forward paid interest is as low as 6.5%and defered is 7.45%.Now as part of the allowable stocks to trade there are a number of Property trusts–some out performing others.
I think Property trusts have been chosen because in general they have out performed the All Ords over the past years due to the property boom.Their out performance is unlikely in the future and a knowledge of how to analyse a stock chart and in particular a sound grounding in RISK MANAGEMENT when investing would be musts.
The principal is in my veiw very sound and if used correctly can return astounding profits.
Although property trusts have been used in this example a portfolio of stocks will do the same.
Depending on your ability to choose and manage a portfolio you can return far in excess of the 12% offered as a bench mark here.Ive been doing this now for 3 yrs.Having traded for 10 yrs now the opportunity hit me in the face just as it has others.The key ofcourse is your portfolio.
Having been involved in Trading System Developement for 6 yrs I and a few others decided to prove to ourselves if this could be done.(Develope a method which can trade profitably consistantly over a long period of time).
2.5 yrs ago we developed and trade live on the net at reefcap.com a method which has in that time returned around 80% and leveraged at 2.5:1 gives a return on INITIAL equity of 200%.
Figures like this are normally scoffed at.
So I will post the link here for you all to lookback on and watch as time goes by.
Infact the whole method is available to you at no cost if you have the software to make use of it.(Metastock).I can also post on reefcap charts showing what I mean with regard to the Propery trust part of the discussion.Ill open a seperate thread under Traders helping other Traders this afternoon—just hopping out for an hr or so.
Lookforward to more discussion.
http://www.reefcap.com/ubb/Forum8/HTML/000374.html
This link is the latest results sheet.
John
Humans are the DUMBEST of creatures.
They do the same thing day in day out and expect a DIFFERENT result.Why couldnt the family register an $80000 caviet
on the mortgage for security.You get better return and cash flow.
Increased equity and proof of cashflow = more properties.Just a thought.
Humans are the DUMBEST of creatures.
They do the same thing day in day out and expect a DIFFERENT result.Oh please!!
Sickening!
Those serious about charity NEVER talk about it.
Those who do(Talk about it) tend to need their ego’s massaged.
The worlds full of ‘would be’s’
tech
Humans are the DUMBEST of creatures.
They do the same thing day in day out and expect a DIFFERENT result.Yeh I know its a topic that can be discussed infinitum.
But there are a couple of issues that I feel people over look.
Lets face it we make good money in Property because we use other peoples money for leverage.
We may put 50K down as deposit lending insto gives us a further 200K and we are in.
Prices boom and we make 30% in a couple of years (as an example).So on our initial investment of $50K we have a further 60K less expenses.
People are very comfortable with this form of investment.
Trading the Market however to most is similar to voodoo.The use of leverage in the Markets is more wide spread than Property.
CFD’s 10/1 Margin 2.5/1 Options Varies but 50/1+
Futures 100s/1However the number of people willing to place 50K down and trade(Or control)$500K of shares using CFD’s for example are indeed small in comparison to property.
Rightly risk is seen as a 2 edged sword.A 10% climb in your portfolio using our CFD example will gain 50K doubling our investment.
A 10% fall will see a $50K loss whipping out our initial investment.Trading can be as safe as “houses” there is not enough education which gets to the crux of trading Longer term and risk management/ allocation.
Returns can be consistantly over those of property without having to trade exotics,spending 1000s of hrs pawing over Balance sheets or studying Technical Analysis in its various forms to find your Holy Grail.
I personally trade a longer term Margin account and have returned over the last 3 yrs well above that of housing.Infact the method I use and developed is traded live on the net.All results are published every week.Frankly its so slow that its as boring as hell.But for 80-120% return on my initial investment each year,Im happy to be bored!
I certaintly agree that there are opportunities in both Property and Trading ALL the time.
There is no need to have all your eggs in one basket.Spreading risk is certaintly a wise stratagy.There is also no need to be 100% geared in anyone investment stratagy either.Your weighting can and should vary when opportunity calls.
EG at this time property is flat or negative in some areas.Many including myself have equity doing nothing in our IPs.Some of that could be used in a share portfolio with the potential to return much more than FLAT.
Trading and REALLY understanding it took me 7 Yrs to unravel and 8 yrs to turn a profit regularly,that was 11 yrs ago.Anyone can have a profitable trade or 3 but FEW can string it together for an income flow.
Finally in answer to the question.
Learn how to DO BOTH,the secret to real wealth IS being able to use other peoples money to create money that is yours.
Master this and it doesnt matter what you choose to invest in RICHES WILL COME!.tech
Humans are the DUMBEST of creatures.
They do the same thing day in day out and expect a DIFFERENT result.Ok so theortically (and I guess practically)he sold his option for 550K and the Bowling club got their 800K.
The buyer paid for Richards iption to be able to buy the land after Richard gained approval for 55 Units.
So Richard you on sold the option (approved).
Have I got it now?
As I said Ive done this with land and off plan apartments but nothing like the $ return mentioned here.
Im in AWE!
Humans are the DUMBEST of creatures.
They do the same thing day in day out and expect a DIFFERENT result.kp
Would be happy to help.
Our site deployment maybe a little steep from Adelaide!!
tech
Humans are the DUMBEST of creatures.
They do the same thing day in day out and expect a DIFFERENT result.Richard.
yes I understand.
but back to the question.
Your original investment for the option was $1000.You sold it then for $1.350 mill.
Making 1.349 mill from the original investment?Can you just clarify the numbers.
What you got
What the Bowling clud got.In the $1.35 mill option deal.
tech
Humans are the DUMBEST of creatures.
They do the same thing day in day out and expect a DIFFERENT result.Love sloping blocks.
My Company–Retaining Wall Industries(Civil)Pty Ltd—Constructs walls for both commercial and domestic developements.
Bugga the flat land you all go and buy sloping blocks
.Give us a call and we will ad $1000s of value.tech
Humans are the DUMBEST of creatures.
They do the same thing day in day out and expect a DIFFERENT result.Or roll over on your option.
Humans are the DUMBEST of creatures.
They do the same thing day in day out and expect a DIFFERENT result.Richard.
Just trying to get my head around this.
Option on Bowling club,$1000
You on sold it(the option)for $1.35 mill.
The owner of the option continued to on sell.
What did the bowling club end up with?As it appears that the option to buy was sold not the underlying property.
(Ive done the same with fast moving land parcels.Downside is that if you can move it quickly youll have to settle).
tech
Humans are the DUMBEST of creatures.
They do the same thing day in day out and expect a DIFFERENT result.Ever considered wrapping Commercial Property/developement.
Domestics had its run.
Commercial has more upside IMHOtech
Humans are the DUMBEST of creatures.
They do the same thing day in day out and expect a DIFFERENT result.While there is nothing wrong with a splurge now and then,one should ponder on timing.
While also you may have just completed a profitable transaction or a wise investment move has payed off it appears unlikely.
Had your 16k been placed in a growth stock or part of a property deal it may well have been 32K in 12 mths.
300K in 5 yrs—-who knows.Money DOES make money and having it NOT working for you (Unless your watch appreciates in value) in your early days of wealth creation is a fatal error.
Thats why you see some of us old guys with our toys most of us didnt have them when we were younger.
Id rather be an old guy capable of having some toys than just a plain old guy!!
Midlife crisis
yeh sure and I can afford to have a real good one!!tech
Humans are the DUMBEST of creatures.
They do the same thing day in day out and expect a DIFFERENT result.Ablaz has got it.
Once youve made your first Million there is no way youll have it sitting in a corner smiling back at you.
Youll have learnt how to put it to work.
I read here constantly of generating passive income and this IS how youll be able to survive and ENJOY life.
You can do/have BOTH you know.
There are 3 ways I know of for generation of a passive income.
(1) The obvious Property.
(2) From a business you own .Even though you dont work in it or work full time it can generate an income.(Banks love this!)Of course this maybe your way of making a living now.
(3) Trading or more to the point INVESTING long term in the market.So even $30K a year from Property
Another $30K from the other 2 so that totals $90K a year.
Very achievable if you have a Nett equity of 1 mill.The challenge is getting there and doing it as elves says.Hell its gotta be FUN.
90% wont come close.tech
Humans are the DUMBEST of creatures.
They do the same thing day in day out and expect a DIFFERENT result.Got my vote.
CTX (Caltex) one in my portfolio up 200% in the time Ive had it.
Youd take that if it were property growth.
Pity I didnt have the value of a house on it!
There in lies a big difference!tech
Humans are the DUMBEST of creatures.
They do the same thing day in day out and expect a DIFFERENT result.Acey.
Interesting comment.
I maybe wrong but Ill bet chances are thay are (although by name,advisors) still the same “Salesmen”.
If however you old us that they are now owning X properies and they had “Followed the Money’
Id certaintly agree.All I can see is an alteration in percieved posture within an industry!
Doing the same thing placing a different label on it.
tech
Humans are the DUMBEST of creatures.
They do the same thing day in day out and expect a DIFFERENT result.Yes with open positions.
Keep me posted through email if you like.Humans are the DUMBEST of creatures.
They do the same thing day in day out and expect a DIFFERENT result.SIS.
Thanks for your trading statement.
Suffice to say that the quantity traded $ wise is far less than I expected.
Plus you postings havent been balanced with the losses you incure.I note your net negative.
Anyway a great effort to email me your statements.
Your enthusiasm deserves reward and Im sure youll be challenging Donald Trump b4 long.tech
Humans are the DUMBEST of creatures.
They do the same thing day in day out and expect a DIFFERENT result.SIS.
Could you be kind enough to send me a copy of that LLC contract with 13 plus contracts bought 13/10 and now up over 100% thats $50K in a few days.Also the NCP contracts which you still have I presume thats 60 of them They would be down around $30K at this time possibly more.
I just dont want to be hoodwinked by a braggard,Im sure you understand.Once I verify with your broker authenticity Id be very happy to take up your offer.Thanks.
The most impressive trading I have EVER SEEN and if correct will definately fly to Sydney where Ill take up your offer to mentor me.Ill even set you up for a day or so in the Complex of your choice.
My email is [email protected]
Thanks for your generosity.
John
Humans are the DUMBEST of creatures.
They do the same thing day in day out and expect a DIFFERENT result.Think what Steve ,myself and others are saying is.
Simply if your highly geared decrease your exposure while you can.
No need to then guess or postulate on what “COULD” occur,it wont matter!!
There will even be other opportunities for those who were astute enough to place themselves in a position to take advantage of them when they occur!
You know its not a matter of being right or wrong is it!
Its about placing yourself in a position where you are minimally affected by matters you have very little influence over.Its not about CREATING wealth more about KEEPING it.
tech
Humans are the DUMBEST of creatures.
They do the same thing day in day out and expect a DIFFERENT result.If your heavily geared.
Stick this on your fridge!!
It would be wise to think about your current position and take action as needed to manage the risk while there is still time.
NOW DO SOMETHING.
Humans are the DUMBEST of creatures.
They do the same thing day in day out and expect a DIFFERENT result.
