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The only safe way to invest is to Hedge for safety

You can maximise your ROI if you use a leveraged product such as spread betting (tax free) or CFD's (similar but TAXED).

I know most people either don't think about them, or are scared.
BUT
Use them properly and you can 'Hedge' your postions, which eliminates the risk of losses and maximises your profits. Basically you can run your own hedge fund.

You can see the basics of how hedging works on ycmoney.co.uk
They also link to excellent tutorials and video help files on other sites.

I personally have investments in my Self-Select ISA, but I have found over the last 4 months that my growth on my hedging trades with spread betting has turned my initial starting pot of £500 into, as it stands, in excess of £14,000 which I think is great!!!

Comments

  • jdemaistre
    jdemaistre Posts: 36 Forumite
    edited 18 September 2009 at 12:20PM
    Spread betting is not a way to invest; it is, as the name describes, betting. It is also an extremely risky way to bet, unless you know exactly what you're doing. You can end up having to pay out thousands more than you staked.

    Having known at least one investment banker - and not a stupid one - who threw away a lot of money on spread betting, I would strongly discourage people from deluding themselves that it is an investment option. If you have a lot of money and want to play with it, fine, but don't tell yourself that you're investing it.
    My posts are not financial advice. If you want that, please consult an IFA.
  • donglemouse
    donglemouse Posts: 2,653 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 18 September 2009 at 12:36PM
    i'll beg to differ to a point - you say "it's betting", what's buying a share about? in reality you are also 'betting' that the market value of a company will rise to make you money when you sell the share at a later date

    yet many people seem to think buying shares is investing rather than gambling, as if one is respectable and the offer is not

    spread betting on financials can be a tax efficient way to deal shares etc, but it's something that people shouldn't even be considering unless they think they understand all the fundamental and the risks involved (much the same as 'investing' in shares or any other asset)

    as for the original poster anything that turns £500 in to £14k in months as massively high risk and people would want to understand the risk before betting/investing
  • BigDonut
    BigDonut Posts: 291 Forumite
    edited 18 September 2009 at 1:07PM
    This looks like a spam posting to me and someone trying to advertise their website. First post and it happens to be advertising a site with a scheme promosing great returns.

    Edit: quick internet search shows that same message was posted on other money / investment forums. So ignore the Spam folks
  • Donglemouse - I agree, to a point. But we can then say that putting your money in a bank is "betting" that the banking system isn't going to collapse, or that holding cash is "betting" that you won't be robbed or the currency devalued.

    The point is, most people who buy shares do so with a view to a company's future growth, not because they want to make a quick buck off the direction of the price. I think there's a difference between that and spread betting, which is exactly that - betting on which way the FTSE (or S&P, or whatever) will go. In that sense it is more like putting money on black/red at roulette, with the added danger of leveraging resulting in extremely large debts. (This can be avoided with stop orders, but one of the sad facts about spread betting is that a lot of people who get into it don't actually know what they're doing.)
    My posts are not financial advice. If you want that, please consult an IFA.
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