eToro - Need Help understanding leverage x5

AnotherJoe

If you bought CFD then you haven't bought shares.
As others have said, it's clear you have zero idea what you are doing, in which case the advice is, stop doing it.
Unwind your positions and take some time out learning.
FWIW in the past I've engaged in some very risky trading , I've gained and lost literally hundreds of thousands of dollars, and I wouldn't trade in CFDs, too risky for me. The only upside is your amounts are small so the damage is limited. Get out out now before, by bad luck, you accidentally make some decent money which encourages you to pile in and then you lose far far more than you ever gained

bowlhead99

ESonic wrote: »

Thanks guys for the advice.
I've bought some shares in Netflix - I think their earnings will be good.
I made good decision so far, hopefully this will work out.

I plan on selling my shares tomorrow.

Unlike UK listed shares where the results are typically announced an hour before the market opens, the Netflix earnings and investor results call won't be until *after* the US stock market closes.

So if you plan to sell today during market hours you'll be doing it before the earnings are announced. If you think the earnings will be better than the market expects, it seems a bit strange to sell out without waiting to find out if you're correct.

FWIW I have some Netflix shares in my pension from 2015 when I bought some at $60ish and some more around $100 in early 2016 ; I later sold half of them at a nice profit but then bought them back last December when the price had fallen to the mid 200s range as I thought/hoped it was overdone. With the market recovery and recent announcements of subscription fee rises it has bounced back nicely, but where it goes next and whether it will get dumped again after the earnings report, who knows. It's not the sort of share I think needs 5x leverage

Albermarle

Normally if you are the kind of investor in deals in high risk gambles like this you should be someone who is answering questions on here , not someone having to ask such basic questions .

ESonic

Quick update - I have around $2265 dollars invested in Netflix. I am bit disappointed the pound didn't drop. I don't understand why it went up?

My investment is worth 2546.50 right now.

I understand what everyone is saying, but do know that I've been using the Virtual account - I've been selling and buying shares for couple of months now. If my Virtual account was my Real account, I would have made $20,000 dollars. But I understand that in "real life situation" would have never taken the risk I did with the amount of money I've invested on the Virtual account.

So I am just playing around with little money and at the same time I am learning about stocks and shares.

Thanks for all the advice guys, I've read all the posts.

ESonic

@bowlhead - Why didn't you invest more money and when do you plan on selling your shares or are you not bothered because it is such a small amount?

masonic

ESonic wrote: »

Quick update - I have around $2265 dollars invested in Netflix. I am bit disappointed the pound didn't drop. I don't understand why it went up?

That's the problem with guessing which way things will go from one day to the next. Often it is not much better than a coin toss, and you never know to what degree events have been anticipated.

I'll wager a virtual pint that if the motion of no confidence passes, that would lead to a drop, but that outcome is quite unlikely (unlike the vote on the Brexit deal).

ESonic

But do we not all have to make a guess when investing?

You have to take risks, all investments are exactly the same and the FAANG are not high risk investments. I think my investment are safe, I understand there is a threat from Disney and other streaming services, but I plan to sell before that time comes.

I am also waiting for Tesla shares to hit rock bottom. Then I'm going to put all my money into that business. I am still learning and I learn from investing.

Mr.Saver

Did you read what they write on the bottom of their website?

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider.

londoninvestor

ESonic wrote: »

But do we not all have to make a guess when investing?

You have to take risks, all investments are exactly the same and the FAANG are not high risk investments.

What do you think the 1-year range of outcomes is for the FAANG stocks? i.e. what is the largest feasible % rise and largest feasible % fall you are planning around?

masonic

ESonic wrote: »

But do we not all have to make a guess when investing?

No, over a 20 year period (even a 10-15 year period), the returns from investments will be positive with a high degree of certainty.

What you are doing isn't investing.

You have to take risks, all investments are exactly the same and the FAANG are not high risk investments. I think my investment are safe, I understand there is a threat from Disney and other streaming services, but I plan to sell before that time comes.

There is a difference between taking risks and gambling on day to day price movements. It is not safe to buy a single share in a niche market, especially not so at 5x leverage!

I am also waiting for Tesla shares to hit rock bottom. Then I'm going to put all my money into that business. I am still learning and I learn from investing.

When will you know they've hit rock bottom? How do you know the price will ever be lower again than it is now?

Frankly, your comments made so far suggest you are in need of an education in investing. I would suggest starting with the following:
https://www.open.edu/openlearn/money-management/managing-my-investments/content-section-overview