Stock noob - oil

Cryogenic · 9 Nov 2014 at 11:56

jsmoke said:
Couldn't have put it better, to finance this out of a remortgage sounds pretty dodgy, fair enough if you have the readies. This is generally what the big guns of the trading world do but they know their stuff, maybe stick the money in a pension fund, more property or multi ISA's.

Thanks, but makes no sense as it based on remortgage money, there is no way a pension fund is going to generate a percentage to even cover the mortgage interest as they are low risk.

dowie · 9 Nov 2014 at 11:57

Tefal said:
ok you need oil to reach 1,000 dollars a barrel for some perspective here.

no he doesn't, he's not investing in physical oil

Cryogenic · 9 Nov 2014 at 11:58

Zethor said:
If you want to invest, you need savings and risky investments such as stocks should never consist of more than 30% of your savings.

Oil prices tend to go up during economic booms and we're not nowhere near one at the moment.

Agreed, 40k is not my whole house, just a remortgage of around 40%. Agreed about the booms, but scarcity and middle east dictatorships are a sure fire bet - I would bet my life on it

Cryogenic · 9 Nov 2014 at 11:59

dowie said:
no he doesn't, he's not investing in physical oil

Correct!

Cryogenic · 9 Nov 2014 at 12:01

Tefal said:
wait? but with a mortgage your going to have even less money at the end of the month as you'll now have a mortgage to pay off as well.

Short term yes, how else I am supposed to raise the money for me gamble. And no I am not asking friends or family as I am not a 419'r

Kenai · 9 Nov 2014 at 12:02

dowie said:
no he doesn't, he's not investing in physical oil

Let's not beat about the bush here, whether it's a direct correlation or not, he's not making a 1250% return in 10 years is he?

Cryogenic · 9 Nov 2014 at 12:05

Kenai said:
I don't see how the answer to that is to pull 40k out of the security you do have, increase your monthly liability in the short term, all on hopes and dreams that 40k will become 500k.

Even 50k would probably be considered by many a fairly decent return but that's hardly going to revolutionise your monthly income.

I still think you'd be better served aiming to improve your monthly income, rather than effectively risk your house for what will likely not amount to a huge return.

If you already have no money left at the end of each month, how are you going to pay the mortgage off whilst waiting for this investment to come good? What if it never does? Then you still have a low income but no house to go with it because the bank have relieved you of it.

Risk vs reward is great when you're dealt a crap hand to start with but there is somewhat less merit when you're starting with a good hand, you can afford to do slow and steady and still win the race so to speak.

This my friend is known as the rat race that we are all in, the truth is I am not that smart so want to gamble it big one time only. The bank will not relieve me of the house as £140 month is doable even if I lose my job and have to work as a cleaner or in the big M.

Kenai · 9 Nov 2014 at 12:06

Cryogenic said:
Agreed, 40k is not my whole house, just a remortgage of around 40%. Agreed about the booms, but scarcity and middle east dictatorships are a sure fire bet - I would bet my life on it

You'd stand to lose your whole house if you can't repay it though

Cryogenic · 9 Nov 2014 at 12:08

booyaka said:
so how are you going to pay the mortgage on the house in the meantime?

General cutbacks such as buying supermarket brands instead of Heinz - you get my point

Kenai · 9 Nov 2014 at 12:10

I think at this point it's probably best to just wish you luck on ruining your life chasing an unachievable dream really.

Do feel free to come back gloating in 10 years with your 500k though.

Cryogenic · 9 Nov 2014 at 12:11

Kenai said:
You'd stand to lose your whole house if you can't repay it though

This applies to anyone who has ever taken a mortgage since the dawn of time. If I can't repay, I will sell up and more to smaller abode. But, if I win, I will have money in the bank, the house, and no mortgage - the same promise that that draws millions traders around the world to the world markets

dowie · 9 Nov 2014 at 12:12

Kenai said:
Let's not beat about the bush here, whether it's a direct correlation or not, he's not making a 1250% return in 10 years is he?

in theory yes, in reality it is unlikely

he needs the price of oil to increase by a decent % make that return but he'd likely need to cover additional margin payments along the way

Cryogenic · 9 Nov 2014 at 12:15

Kenai said:
I think at this point it's probably best to just wish you luck on ruining your life chasing an unachievable dream really.

Do feel free to come back gloating in 10 years with your 500k though.

Thanks, I have seen other people do it on what to any normal person would seem ridiculous.

My friend sold his house to invest in a new school teaching Japanese (wtf) - his income has gone up 30x in 2 years. Other friends have borrowed money to start a mikshake bar with chocolate bits inside as their niche - they make £500/day and are on their 3rd branch.

What is so wacky about me doing the same? :confused:

but thanks about wishing me well

Kenai · 9 Nov 2014 at 12:15

Cryogenic said:
This applies to anyone who has ever taken a mortgage since the dawn of time. If I can't repay, I will sell up and more to smaller abode. But, if I win, I will have money in the bank, the house, and no mortgage - the same promise that that draws millions traders around the world to the world markets

Everyone else does it to achieve the security of owning a house in the long term, something you already have, not so they can throw it away chasing a dream of easy riches.

Cryogenic · 9 Nov 2014 at 12:16

dowie said:
in theory yes, in reality it is unlikely

he needs the price of oil to increase by a decent % make that return but he'd likely need to cover additional margin payments along the way

Thanks, will research it further and bear these comments in mind.

StonedPenguin · 9 Nov 2014 at 12:17

Good luck.

jsmoke · 9 Nov 2014 at 12:19

Cryogenic said:
Thanks, I have seen other people do it on what to any normal person would seem ridiculous.

My friend sold his house to invest in a new school teaching Japanese (wtf) - his income has gone up 30x in 2 years. Other friends have borrowed money to start a mikshake bar with chocolate bits inside as their niche - they make £500/day and are on their 3rd branch.

What is so wacky about me doing the same? but thanks about wishing me well

That's one person out of all the billions, what about all the poor starving repressed peoples of the world, can you truly be content with knowing you've (legally)scammed the system just so you can saunter off to some sunny beach to drink cocktails?

rubberduck · 9 Nov 2014 at 12:20

dowie said:
in theory yes, in reality it is unlikely

he needs the price of oil to increase by a decent % make that return but he'd likely need to cover additional margin payments along the way

Please clarify 'a decent %'

delta0 · 9 Nov 2014 at 12:22

One day oil will be worthless. We are a way off that, but most of us will easily see it in our lifetimes.

Cryogenic · 9 Nov 2014 at 12:25

Kenai said:
Everyone else does it to achieve the security of owning a house in the long term, something you already have, not so they can throw it away chasing a dream of easy riches.

Nothing is secure, it is just an illusion, mortaged houses belongs to the bank until you pay off the last penny. How many people lost their house in the great depression of 2008, jobs/business generates income and ultimately pay the mortgage. When you have no job, business or insurance to cover your mortgage, you are up the creek without a paddle as many people were affected at the time.

Easy rich dreams are for lottery ticket buyers. My long term investment based decision is based on a big outcome but not based on luck, rather strategic thinking.