I found the newbie thread funny because I am 28 and just starting to think about investing. Essentially I have been just another money waster, but I want to change all that.
What I am pondering at the moment relates to risk.
If houses ALWAYS go up in value then we could assume that a house is a sort of risk free return so we should be able to get more out of shares ?
I'm also wondering what the cost of holding an options position vs the cost of buying and selling a house would be ?
Also when we say risk do we automatically assume that means you're going to lose it all ? Is risk the term used for something which is essentially fancy gambling i.e it has a zero sum OR a zero sum to small time investors ?
Lets say I can set aside between $250-$500 a week to buy shares, how is this any more or less risky than buying a house for capital gains purposes, given that if it does not increase I get stuck with interest payments a low liquid asset and high buying and selling costs.
So while it might seem STUPID to buy between $250-$500 worth of shares on some sort of margin (not that amount each week but that is how much I can probably put aside).
Essentially I'm not afraid of risk. That money could be lost in other stupid ways, such as beer and strippers and that 06 BF falcon I've been eyeing. No one ever got ahead without taking a risk and my income position indicates that buying an IP is suicide unless we see high growth... and I don't really have the expertise to invest capital into an actual profit generating business. (but I do have a few schemes on the back burner).
Also does anyone know how/where I can get access to good stock market data and in how raw of a form I can get it ? I currently look over google finance.
I also would like to know where I can find the prices, interest rates ect on options and a good place to find out exactly what all of the definitions mean ?
What are the capital requirements to trade CFDS ? What are the eligibility requirements ?
So if I trade with $1000 on 10% margin, would that mean my maximum possible loss is $10,000 if the share price were to go from 100% to 0% ?
I'm not racing out to start trading tomorrow btw but I want to start doing something to make something happen besides working my ass off to try and get another $80 per week raise..
Thanks in advance,