Hi guys just wanted your opinion on a possible investing strategy I have.
Basically I have a bit of cash about 15 grand, going to take a personal loan of 35grand to make a total of 50 grand.
With this equity I'm thinking of leavering it up using cfds to buy blue chip companies (WPL, BHP) at a margin of 10%.
There is alot of risk with cfds and to manage this I will have several buy packet (approx $5000 / packet, unleveraged ) and buy it over a minimum of 3 months spreading the risk. To hard to pick the bottom lol
I will also not use to total 50grand only 35 grand, and use the 15 grand for stop losses and buffers, margin calls etc. Plan to hold the shares for about a year or so as long as I can meet both interest repayments, i.e. personal loan & cfd interest. I have a stable job and wont loose it (government contracts) so thats not a problem.