Financing Share Trading

• 28 March 2005

• #1

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kpgduras

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Hi

I am wondering if it is possible to get a 100% loan to finance my venture into share trading, or do I have to put a a certain percentage myself? The figure to borrow I have in mind is $30,000.

Any advice?

Regards
kpgduras

 

• 28 March 2005

• #2

krisbarry

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If you have a good income a loan of $30,000 should not be too much of a problem, although a little risky if the stocks slide south.

If not try Margin Lending...

You have to provide proof of current share ownership and they will lend you a percentage of that.

 

• 28 March 2005

• #3

tech/a

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Have you been able to Paper Trade successfully yet?

I would strongly advise posting a thread here with your trades both entry exit and stops (If you choose to use one) before getting any hard earned involved.

By trading in public youll be kept honest by those following your developement (You wont be able to cheat using hindsite!).Plus youll get lots of helpful hints as you go.

Id be very suprised if you made a profit in your first 6 mths so chances are youll save a good deal in the process.

Once your profitable and UNDERSTAND WHY you are then you could look at ways of financing your trading business!

Patience no need to make your education more expensive than necessary.

In my veiw under capitalization is one of the major causes of failure in trading.


You can get around $30K with approx $8 k down using Margin .

https://online.btfunds.com.au/retailinvestor/investor?Request=MLSecuritySearch&SecType=Shares


Have a look around here.
But Id do the above FIRST!

 

• 28 March 2005

• #4

money tree

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juggling chainsaws may be safer option

 

• 28 March 2005

• #5

tech/a

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Tree.

Your right in the larger majority of cases.

BUT.

There are some who unlock their capital and trade
very profitably (20% + nett--- conservative) even with costs
and interest rates considered.
Dividends,tax deductions all considered just another slant on a DIY super fund but here you can borrow.

Risks are no different to any other trading.Return just has to be greater to cover the cost of business.

The way most funds have performed in a so called raging bull market its no wonder people are turning to alternatives.

 

• 28 March 2005

• #6

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kpgduras

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Thanks to money tree, krisbarry and tech/a for your advice.

I am still in the system development stage using Metastock 8.01, Roy's Trade Equity, Medved Quotetracker and Excel as my tools. The system I am using is a mixture of Bollinger Bands and Candlesticks for entry and Bollinger Bands and/or a timed exit for exiting a trade.

Attached is a spreadsheet showing some results.

kpgduras

 

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• Duras.xls

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• 28 March 2005

• #7

tech/a

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Looks OK from the Note pad.

However thats the whole market if EVERY trade was taken.
There isnt an allowence for brokerage and with 850 trades at $30 in and $30 out thats $51,000,which belts the bottom line.

The second exit formula if you can supply that ill place it in Tradesim and do some simulations for you on portfolio analysis if you like.This will give you a better indication of tradability.
I can send them to you privately if you wish.
Just private email me.

Also try Weekly periodicy if using Bollinger Band entry as this has in the past always tested more profitable.

tech

 

• 28 March 2005

• #8

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kpgduras

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tech/a said:

Looks OK from the Note pad.

However thats the whole market if EVERY trade was taken.
There isnt an allowence for brokerage and with 850 trades at $30 in and $30 out thats $51,000,which belts the bottom line.

The second exit formula if you can supply that ill place it in Tradesim and do some simulations for you on portfolio analysis if you like.This will give you a better indication of tradability.
I can send them to you privately if you wish.
Just private email me.

Also try Weekly periodicy if using Bollinger Band entry as this has in the past always tested more profitable.

tech

Click to expand...

Tech/a

Thanks for taking the time to have a look. I have allowed $20 in and $20 out for commission in the TE formula (I use Comsec who, when I traded with them last year chrged $19.95 a trade).

I will PM the formulas to you.

kpgduras

 

• 29 March 2005

• #9

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markrmau

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Just to let you know commsec will slug an extra $10 per trade when using margin loan. It is not obvious, but if you go through the 100page PDS you should be able to find this. I am going to move to hsbc next financial year.

 

• 29 March 2005

• #10

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kpgduras

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markrmau said:

Just to let you know commsec will slug an extra $10 per trade when using margin loan. It is not obvious, but if you go through the 100page PDS you should be able to find this. I am going to move to hsbc next financial year.

Click to expand...

Is it because HSBC rates are lower that you are moving, or ..?

 

• 31 March 2005

• #11

Stan 101

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have you considered National online trading... If you have a choice package with them you get a flat $22.95 up to 25k and drops to $19 after 5 trades. layout isn't the best, but it's cheap!


Cheers,