Share installment

[Preston]

Good morning to all individuals Is there any disadvantage of using Share Installment as a means for investing in shares? Is there any reading material that i can use to educate myself? Many Thanks Preston

[#2]

Biggest risk is that some come with a barrier - if you hit it you lose most of your cash. It's not always clear which are geared and which are not. Most, though, don't have a barrier, and are a good way to trade a geared instrument. SEQ has info on them in the help & education section.

[Brazen]

Hi Preston. Go to 'help and education' on the side menu and click on 'how to guides'. There's one on installments. I love installments and use them all the time. You get a bit of gearing, so can free up capital, but not so much as to be too risky. You also get the full divi. I think they're great.

[#4]

Sorry - Monday mornin fog - they are ALL geared. Meant to say only some have barriers and for a novice it can be unclear which these are. Avoid barrier instalments, at least until you are familiar with the product. Also, some people have had trouble distinguishing puts from calls - make sure you are not getting a short when you means to go long. Best o luck.

[DST]

Does the lovetruck have gears? Some of the scalier surfdudes like that old rondeneus combi with the porridgy auto gearbox - esp on a taut Monday

[Preston]

Thank Guys ( Gravy /brazen) just a general question , does "put,call, and barrier"also applies to share installment. I am aware that i applies to warrants. Preston

[#7]

Dude, went to the thing in St Francis this weekend - stayed at that place, y'now the one, the white house with the black thatch roof..

[Preston]

Sorry Mr Shakespear (DST) i do not understand your language/message or possible advice that you trying to bring across.

[#9]

Yes - sometimes. Hot Eds & Turbo's have barriers. And I think Investec issues a put installment. Mostly though, regular instalments function like shares - you hold with the aim of capital growth - ie long.

[Brazen]

Actually, we were in St Francis last week, not this week-end. Not to be picky or anything. You can well imagine Gravy's confusion with the white walled black thatch thing. Lost, lost, lost and confused.

[DST]

Apologies Preston. Just heckling the mobile lovers - wondering what gear they are in - shouldn't do it in your thread.

[Preston]

All's forgiven

[Preston]

Hi Guys Can anyone explain to me when can you lose money on share installment by using a practical example. I am serious battling with the Logical rationale behind that and also why when the share price increases do the initial payment also increases. And lastly what are the benefits for bank to offer such a product to the investing public. Many Thanks

[Preston]

Hi Guys Can anyone explain to me when can you lose money on share installment by using a practical example. I am serious battling with the Logical rationale behind that and also why when the share price increases do the initial payment also increases. And lastly what are the benefits for bank to offer such a product to the investing public. Many Thanks

[Brazen]

Preston, you lose money when the share goes down if you're long (which you most likely are if you're in an installment) and you make money if the share goes up. Why do banks issue them? Why do the godamned banks do anything they do? To make money for themselves.

[Preston]

Thanks Brazens. I guess i need to direct my dumb questions to the candidate that will be presenting a course on share installment.

[cfm]

Preston. When you buy an installment, you are basically borrowing money from the bank. They charge you a fee for that fact that they have to hold the shares while you only gave approximately half (depending on the gearing) of the capital. That is how they make money.

[Brazen]

Don't worry Preston, there are no dumb questions. It's only dumb to leap in without understanding. It really is best to start with ordinary shares before using any geared instruments. It gives you that basic understanding of how the market works. And the harsh reality is that buying good, solid companies and holding them for 5 years is how you really make money in the market.

[DST]

B I really think its time for you to run some one-on-one seminars in the l-truck.

Get yopurself a gypsy headscarf, and a quaint sign

Madame B - assistance with starting to grow a small fortune. Roll up, roll up - you can get there starting with nix or with a big one. Competitive rates and cracking good decor in the truck.

What about changing the face of garden root capitalism?

[Brazen]

sigh. .. . but no one wants to hear my five year blue chip story. It's just not as exciting as wave riding and shorting the bull. . . .