£3000 in stock market?

[Kman]

On 19/07/2020 at 00:39, HillWalkerDundee said:

I don't understand why anyone would purchase an ETF for metals. So many are not backed by the metal, all you are buying is digital IOUs. Taking your money out can be a lengthy process. And I don't trust vaults either.

 

There's no premium to buy, no delivery on top, no wait time, fees are low 

You can put money in and take it out instantly if you really want as long as the markets open which is Monday-Friday 

If silver goes on a strong uptrend and you want to put £5000 in today and take it out in a month and it's risen 20% that's very simple, it's way easier than if you had bought £5000 physical with a premium+postage + posting it a dealer and getting no premium or under spot even 

If you want to hold physical too sure, it's just a nice extra play on top of it

 

 

 

[HillWalkerDundee]

I have stayed out of all Covid related stocks. They are all binary - win or lose. SYN has gone stratospheric with 400% gain. Too nerve wracking for me but I wish I had been in there too

[ZigZag]

On 19/07/2020 at 00:39, HillWalkerDundee said:

I don't understand why anyone would purchase an ETF for metals. So many are not backed by the metal, all you are buying is digital IOUs. Taking your money out can be a lengthy process. And I don't trust vaults either.

 

This would have been my first thought years ago.

Sometimes it’s easier to paper trade, but there are a lot of leveraged ETF’s that give you 2 or 3 times the upside (and downside) to a commodity. So more adrenaline fuelled for some, it really depends on your conviction. LSIL or SSIL are examples, depending whether you are bullish or bearish a move in Silver.

Goes without saying, higher the risk, higher the reward (or loss) in leveraged ETFS. These should be only ever viewed as short term instruments due to their volatility. Not everyone loses in the casino though, all a case of timing.

[HillWalkerDundee]

I understand the points made but I would not invest in paper back by thin air. As for leverage, no thanks, never a lender nor borrower be.

[ZigZag]

6 minutes ago, HillWalkerDundee said:

I understand the points made but I would not invest in paper back by thin air. As for leverage, no thanks, never a lender nor borrower be.

Sure. Each to their own and totally understand.

This to me, is speculative high risk trading, you’re either comfortable with it or not. I’d never invest hundreds of thousands but maybe a small percentage of anyone’s trading pot if an individual is prepared to paper trade. Maybe make a 2 or 3 trades a year this way myself.

[Kman]

25 minutes ago, HillWalkerDundee said:

I understand the points made but I would not invest in paper back by thin air. As for leverage, no thanks, never a lender nor borrower be.

It's all one big paper game, might as well play and use the profits to add to the physical stuff if you can

The more I learn about stocks the more my eyes are getting opened to the super safe big opportunities even if they are rare

I've said a number of times but in March during the liquidity crisis silver dropped below $14 for about a week down to around $12 at the lowest, what an incredible opportunity, you could have safely thrown you life savings into a silver etf and made 20-30% in a month and if you held on for longer until it fully recovered more like 40-50% in two months to now more like 60%

Who knows if we will have another liquidity crisis and opportunity like that again, but if there is one I want to benefit from it, I don't want to be looking back like I am now going "if only"

I think we owe it to ourselves to learn as much as we can to take opportunities  when they present themselves even if you don't want to mess around with stocks and etfs etc in general  

Like being ready to benefit from a hot numismatic release to flip even if you're only really interested in bullion 

[AuricGoldfinger]

@Kman well put. I think Silver ETFs are the best way to buy and actually profit from silver gains. The spread is just way too big on physical. 

[TheApe]

1 hour ago, Kman said:

It's all one big paper game, might as well play and use the profits to add to the physical stuff if you can

The more I learn about stocks the more my eyes are getting opened to the super safe big opportunities even if they are rare

I've said a number of times but in March during the liquidity crisis silver dropped below $14 for about a week down to around $12 at the lowest, what an incredible opportunity, you could have safely thrown you life savings into a silver etf and made 20-30% in a month and if you held on for longer until it fully recovered more like 40-50% in two months to now more like 60%

Who knows if we will have another liquidity crisis and opportunity like that again, but if there is one I want to benefit from it, I don't want to be looking back like I am now going "if only"

I think we owe it to ourselves to learn as much as we can to take opportunities  when they present themselves even if you don't want to mess around with stocks and etfs etc in general  

Like being ready to benefit from a hot numismatic release to flip even if you're only really interested in bullion 

While I agree with a lot of what you said.

Once you were suggesting throwing life saving into a "super safe" way of gaining 50 percent gains you lost me. I know in hindsight it seems so, but there is no such thing as what you are describing.

[Kman]

1 hour ago, TheApe said:

While I agree with a lot of what you said.

Once you were suggesting throwing life saving into a "super safe" way of gaining 50 percent gains you lost me. I know in hindsight it seems so, but there is no such thing as what you are describing.

These are some ifs

But If it was understood it was due to a liquidity crisis

If you took notice of the fed stepping in to pump in liquidity 

Even if you waited for silver to stabilise back just above $14 before buying taking it back in a 6+ year trend, that was a tremendous and safe buying opportunity

That was the safest bet you could have made in the world

 

 

[vand]

4 hours ago, HillWalkerDundee said:

I understand the points made but I would not invest in paper back by thin air. As for leverage, no thanks, never a lender nor borrower be.

You're going to need a pretty big deposit if you ever want to buy a house then.

Leverage is just a tool. It can be welded in smart or stupid ways. Fine if you don't want to, but I'd advise against plain ignorance on the subject. 

[HillWalkerDundee]

Lol, you assume too much vand. Both my better half and me own our own houses outright. Both of us work because we enjoy it, not because we need the money, I am past retirement age. As for leverage, when it comes to investing / gambling, only invest / bet what you can afford to lose. 

[vand]

On 20/07/2020 at 22:53, HillWalkerDundee said:

Lol, you assume too much vand. Both my better half and me own our own houses outright. Both of us work because we enjoy it, not because we need the money, I am past retirement age. As for leverage, when it comes to investing / gambling, only invest / bet what you can afford to lose. 

Did you have mortgages at any point, ever?

[TheApe]

Am I the only on trying to resist the urge to throw more money at gold\silver stocks?

Seeing those gains come in makes it hard to sit tight. Not sure if I should be taking some profit or throwing more at it.🤣

[vand]

5 minutes ago, TheApe said:

Am I the only on trying to resist the urge to throw more money at gold\silver stocks?

Seeing those gains come in makes it hard to sit tight. Not sure if I should be taking some profit or throwing more at it.🤣

Nope. I'm pretty happy with my mining stocks in relation to my overall asset allocation. I add a few more each month but I am not at all tempted to dump more in.

If there was a Yoda of investing he'd say: If after performance you chase, only pain will you find...

[TheApe]

1 minute ago, vand said:

Nope. I'm pretty happy with my mining stocks in relation to my overall asset allocation. I add a few more each month but I am not at all tempted to dump more in.

If there was a Yoda of investing he'd say: If after performance you chase, only pain will you find...

While Id usually agree, I have a lot of money sitting in cash right now. Need to find a home for it.

[vand]

9 minutes ago, TheApe said:

While Id usually agree, I have a lot of money sitting in cash right now. Need to find a home for it.

So decide on your desired asset allocation first, then put your money to work accordingly. 

Don't do it the other way around.

[TheApe]

I hear you.

But I have a portion of my money that I like to remain flexible with. Just a little bit bigger right now as I took out of another asset.

[HillWalkerDundee]

53 minutes ago, vand said:

Did you have mortgages at any point, ever?

Once, when I was 21 and 3 weeks old (you had to be 21 in those days to get a mortgage) to buy a wreck. I had it for three years and sold the property into one of the rising markets we had back then. After that I started to buy cheap wrecks, bring them back to a habital standard, live in a dump from one room and a suitcase, and sell them on for a profit. That was my first and last loan. I have never had an overdraft nor credit card and ran my businesses for forty odd years in a similar fashion. Out there are still people who borrowed on 5 x salary and for 50 years.

[TheApe]

6 hours ago, vand said:

So decide on your desired asset allocation first, then put your money to work accordingly. 

Don't do it the other way around.

Well pulled the trigger this morning on First Majestic and bought some more.

Its since gone up another 8 percent🤣. I guess time will tell if that was silly.

[Kman]

On 18/07/2020 at 13:05, Kman said:

I should be looking into the balance sheets of high street retailers and finding who is going to be able to weather the next couple years and who wont be 

I have to say TradingView have been great for this, I've just been using the charts I didn't realise they had other great features

You can look at UK stocks,  sector, then click on a tab like balance sheet and sort them by MRQ ratio

Makes it easier to quickly identify companies to look into further who might be in trouble

I'm looking for the negatives but you could look for strong balance sheets that will ride out the next couple years

 

[HillWalkerDundee]

2 minutes ago, Kman said:

I have to say TradingView have been great for this, I've just been using the charts I didn't realise they had other great features

Agreed, Tradingview is absolutely brilliant for the information available. It does take a little while to get your head around it. And when you have done that, you can skip to the bottom and look at the Buy / Sell gauge. Depending on whether you are a contrarian or not it helps validate your decision :-). I think some people rely on that feature alone, scary.

[KDave]

Great find @Kman thanks for posting. I had been keeping a quarterly spreadsheet manually taking what I needed from consolidated financial statements. It looks like Tradingview will save me a lot of time, I can't believe this information is free. Well the information IS free, but the compilation to produce comparison ratios takes time that I thought I had to otherwise pay for. 👍

[Kman]

https://www.dailymail.co.uk/news/article-8559969/Holiday-chaos-UK-tourists-Spain-quarantine-two-weeks-Covid-outbreak.html

Well that's another nail in the coffin of the tourism industry

Unless you're large enough to get a government bail out I don't know how any other company is going to survive 

Edit> I should say international tourism, maybe it will be a boost for internal tourism 

[HillWalkerDundee]

Yippee, I heard this earlier. Best green decision. Best for home tourism sector. 

[Xander]

No contrast, Spain, wall to wall sunshine, here, wall to wall rain.

Give it a day and Spain will be back on the travel list. The next thing you know we will be getting tagged to make sure you don't leave the house.