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Online Share Trading

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Instalment Club updates

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Super Contributor
The last update for Spring has been made.These shares had done very much better than any time in the last year.The Summer shares have also been updated.They are rolling along nicely.The long term INSTALMENTS are a failure and I am thinking of stopping recording their progress that was made as costs would kill any profit.Go to sashares2010.blogspot.com
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6 REPLIES 6
Not applicable
What do you think of cfds' Barry ? The problem with these time-decay instruments is...the FIX is in from the start.Your views ?
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Super Contributor
I don't follow CFDs as they are considered more risky than Instalments.INSTALMENTS on the other hand do not have time decay,but do carry a monthly interest charge of i think about 4%.So they only work in rising markets.Turbos are riskier than ordinary instalments as they are highly geared geared.
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Super Contributor
also note that when the share price falls, the gearing of the installment goes up and can bite you hard.
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Super Contributor
Installments were a great way to play divs. CFDs also offer this just with higher gearing. Why not simply take a smaller underlying CFD position to get the same kind of effect that you would have gotten from using installments?
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Not applicable
Let me add my 2 cents. I bought CFD on RDF two weeks before divs. Why, because of the gearing - I got a lot of CFD's for a small amount of money. Great it went up and of course you had to stay in LDT to get the divs. But then the Monday after LDT, the share price dropped by the value of the div and so did the CFD. The CFD chewed up my divs and becuase the price of RDF dropped drastically after div date, so did my CFD. IT cost me money. Anybody that buys a CFD to get the divs, are hoping that the share price will fall less than the value of the div. I will never do that again.
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Super Contributor
but the same would have happened if you took the shares.
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