Investing large amount for few days

Toki

I would like to try and take advantage of the daily fluctuations of the markets by investing a large amount, say up to £100k instantly, then when markets went up (hopefully!) in a day or a week, sell.

What's the best way to do this?

I currently invest via Fidelity but they have a £10k per debit card transaction limit. Is there any way round this? Such as leaving the money with Fidelity rather than transferring back to my account.

P.S. I realise markets can go up and down and am prepared to take the risk without seeing an IFA.

Thanks in advance for your time and help.

dunstonh

P.S. I realise markets can go up and down and am prepared to take the risk without seeing an IFA.

Good job as an IFA would tell you that you are mad.

Ignoring the obvious high risk nature of what you want to do, unit trusts are not the investment universe to use for day trading. Single pricing points and settlement delays being the key issues.

Why do you want to use the unit trust universe and not one of the more appropriate investment universes?

alanq

The OP didn't mention Unit Trusts. Fidelity also provides a share dealing service.
https://www.fidelity.co.uk/investor/products-services/share-dealing/default.page

However, I agree that the plan is more akin to gambling than investing and thus unwise.

turbobob

What you are planning sounds mad - unless that £100k is a disposable part of a much larger chunk of cash that you can afford to lose, and even then, it would be unwise to start big.

Spreadbets are probably the most accessible way of doing this, and any gains are tax free. You deal in pounds per point, so £19-20 a point is roughly equal to £100k of capital at work. More serious traders use index futures I believe, and you can also use ETF's. If you are going to do this I'd suggest starting off small and you can see just how difficult it is..

Toki

I know this is risky. Let me explain in more detail. For example take today, the FTSE 100 is down to 5150 having been up at 5345 last Wednesday. Now the risky part, I am taking an educated guess that the FTSE will go up by 1 or 2 % by the end of this week.

If I invested £100k for an easy example, I would make £1k - £2k. If the FTSE did go down, I would keep the money invested until I was in profit. I do know this is risky and if the FTSE collapses I may never get it all back, but the chances are I'll never lose the full amount and can cut my losses at any given time. This is money I can afford to risk. I've been reasonably successful investing in simples trackers investing £10k per day, with a maximum of £50k invested at any given time and made £20k so far. I know that this is no guarantee of future wins / losses but feel I can at least do as well as some managed funds.

I would like to be able to put this amount of money in and take out whenever I choose.

Thanks all for your replies and advice.

Toki

What I also should have added, I would like to invest up to £100k in a tracker type of investment, rather than an individual company or companies. Such as FTSE All Share or the FTSE 100 would be 2 examples.

I'm not keen on spread betting either, as the losses could be huge.

Sceptic001

Toki wrote: »

What I also should have added, I would like to invest up to £100k in a tracker type of investment, rather than an individual company or companies. Such as FTSE All Share or the FTSE 100 would be 2 examples.

I'm not keen on spread betting either, as the losses could be huge.

If you invest £100k in a FTSE tracker and it goes down 5%, you lose £5k. If you bet £20 a point and the FTSE goes down 250 points, you lose £5k.
Which is huger?

turbobob

Ignoring whether its a good idea or not, ETF's have the advantage of allowing you buy or sell instantly, and the price changes throughout the day, unlike unit trusts. Here is an example of an FTSE 100 ETF - http://uk.ishares.com/en/pc/funds/ISF - you buy them through any stockbroker.

Toki

Sceptic001 wrote: »

If you invest £100k in a FTSE tracker and it goes down 5%, you lose £5k. If you bet £20 a point and the FTSE goes down 250 points, you lose £5k.
Which is huger?

Obviously it's the same, however I have limited knowledge of spread betting and wouldn't be comfortable with this currently.

Toki

turbobob wrote: »

Ignoring whether its a good idea or not, ETF's have the advantage of allowing you buy or sell instantly, and the price changes throughout the day, unlike unit trusts. Here is an example of an FTSE 100 ETF - http://uk.ishares.com/en/pc/funds/ISF - you buy them through any stockbroker.

Thanks turbobob, I'll look into ETFs. Do you know if there's a limit per transaction?

I really do appreciate that it's high risk, but so is any type of investment. It can always go down as well as up and see it as me being the manager of my own fund, deciding when to put money in and when to take out on a day by day basis.

turbobob

There's no limit per transaction really. Probably best to stick to the most liquid ETF's traded in high volumes (iShares FTSE 100 for example is very liquid) for the best spreads. It's worth comparing brokers for the best rates etc, some charge more for larger deals.