Stock Trick

James2774 · Dec 14, 2019

Here's something Ijust did for a friend.
He was getting a 5k loan so that he could buy and place two ATMs, however i remembered that he has started playing stocks now.

So instead:

He he got his 5k loan (with a 580 credit score mind you), then we bought 5k worth of stock.
Next, I took that stock and got him another loan for 2500, interest only payments, 3 years
Took that 2500 and bought an ATM and still had 500 left over to do whatever with.

Alternatively he could have used that 2500 to buy more stock.
Another option would have been to simply buy 5k of stock, and get 2500 back (which you then use to pay back the principle of the original loan), in affect buying 5k of stock for 2.5k

Multiplying his 5k loan and turning it into:
Option 1) 5k of stock and an atm for 200/month (owes 2500 balance in 3 years)
Option 2) 7500 of stock for 210/month (owes 2500 balance in 3 years)
Option 3) 5k worth of stock 80/month (2500 balance in 3 years)
Original 5k loan would cost 190/month

Just a thought for anyone who does buy and hold, or wants to acquire extra stock quick in a pinch, or simply wants to use their buy/hold stocks to leverage another investment

tints · Dec 14, 2019

what if the stock takes a massive drop?

Novita Rizki · Dec 14, 2019

I never recommend buying stock/other volatile financial instrument with loan. The risk is too high, my mom former partner lose his business because of it (2008 subprime mortgage case)

Nana Dada · Dec 14, 2019

James2774 said:
Here's something Ijust did for a friend.
He was getting a 5k loan so that he could buy and place two ATMs, however i remembered that he has started playing stocks now.

So instead:

He he got his 5k loan (with a 580 credit score mind you), then we bought 5k worth of stock.
Next, I took that stock and got him another loan for 2500, interest only payments, 3 years
Took that 2500 and bought an ATM and still had 500 left over to do whatever with.

Alternatively he could have used that 2500 to buy more stock.
Another option would have been to simply buy 5k of stock, and get 2500 back (which you then use to pay back the principle of the original loan), in affect buying 5k of stock for 2.5k

Multiplying his 5k loan and turning it into:
Option 1) 5k of stock and an atm for 200/month (owes 2500 balance in 3 years)
Option 2) 7500 of stock for 210/month (owes 2500 balance in 3 years)
Option 3) 5k worth of stock 80/month (2500 balance in 3 years)
Original 5k loan would cost 190/month

Just a thought for anyone who does buy and hold, or wants to acquire extra stock quick in a pinch, or simply wants to use their buy/hold stocks to leverage another investment

I already said it in another thread: buying stocks and holding them is the worst idea now. All markets are maxed out, we are at the end of another 10-year cycle. Recession is inevitable in 2020 or 2021. Hold to your cash instead.

55trillion · Dec 14, 2019

In short you are promoting your financial advisory company

James2774 · Dec 14, 2019

55trillion said:
In short you are promoting your financial advisory company

Is content wrong? Do you never see threads asking hey I have x amount what can I invest it in?
You could not be lazy and just googke stock loans too.
Don’t be salty lol

Novita Rizki said:
I never recommend buying stock/other volatile financial instrument with loan. The risk is too high, my mom former partner lose his business because of it (2008 subprime mortgage case)

Not my money ultimately but noted, I can’t change someone’s strategy, but I do advise that in doing this you cannot trade and do buy/hold must be part of your strategy.

You could actually do this lots of things, BTC for example.
Or gold/silver (much more stable)
Obviously you can do it with anything you could loan against but these are very low cost loans where a reinvestment could make sense.

tints said:
what if the stock takes a massive drop?

Then when it comes time to sell it, you’ll lose the money, or you just keep holding and pray lol.
There is risk in any investment.
That’s just stocks

James2774 · Dec 14, 2019

Nana Dada said:
I already said it in another thread: buying stocks and holding them is the worst idea now. All markets are maxed out, we are at the end of another 10-year cycle. Recession is inevitable in 2020 or 2021. Hold to your cash instead.

just another thought but when it does crash could you not utilize something like this to buy up extra while it’s at the bottom?

Big investors in the gane have Bc access to better margins or things like investor LOC, if someone small wanted to jump in at the right time, I assume the crash would be the right time for tne buy/hold types

55trillion · Dec 14, 2019

James2774 said:
Is content wrong? Do you never see threads asking hey I have x amount what can I invest it in?

I agree both, content is not wrong and you just shared you made money, my fault. frankly i didn't even read the post completely before commenting. My apologies, happy investing/trading.

Nana Dada · Dec 14, 2019

James2774 said:
just another thought but when it does crash could you not utilize something like this to buy up extra while it’s at the bottom?

Big investors in the gane have Bc access to better margins or things like investor LOC, if someone small wanted to jump in at the right time, I assume the crash would be the right time for tne buy/hold types

Hm, I don't really understand what you're trying to say dude, sorry. Anyway, my point is that even though it's thriving now, the world economy is slowing down, take a look at China, they have the worst growth rate for the last 30 years now. Literally EVERYTHING is screaming a recession is coming, if you have some cash, better hold to it and then buy some good stocks when they buttom, do not jump in now, it will be a disaster.

James2774 · Dec 14, 2019

Nana Dada said:
Hm, I don't really understand what you're trying to say dude, sorry. Anyway, my point is that even though it's thriving now, the world economy is slowing down, take a look at China, they have the worst growth rate for the last 30 years now. Literally EVERYTHING is screaming a recession is coming, if you have some cash, better hold to it and then buy some good stocks when they buttom, do not jump in now, it will be a disaster.

Yes that was my point, someone could use this to buy more when it bottoms out.

with my very limited googling it seems gold increases in value decently during in a recession.

so might be an option to put the cash into gold, then when the market bottoms out, take a loan on the gold to buy up stock. Cash out when you feel the time is right into more if you feel also

Nana Dada · Dec 14, 2019

James2774 said:
Yes that was my point, someone could use this to buy more when it bottoms out.

with my very limited googling it seems gold increases in value decently during in a recession.

so might be an option to put the cash into gold, then when the market bottoms out, take a loan on the gold to buy up stock. Cash out when you feel the time is right into more if you feel also

Yes, that's a valid point, gold serves as a defensive asset, it's price goes up when indices such as S&P500 go down, it is very easy to see this correlation on a chart.

upcharger · Jan 13, 2020

Nana Dada said:
I already said it in another thread: buying stocks and holding them is the worst idea now. All markets are maxed out, we are at the end of another 10-year cycle. Recession is inevitable in 2020 or 2021. Hold to your cash instead.

if you have stocks right now I highly suggest having trailing stops on them.

Stock Trick

James2774

Power Member

tints

Registered Member

Novita Rizki

Newbie

Nana Dada

Regular Member

55trillion

Power Member

James2774

Power Member

James2774

Power Member

55trillion

Power Member

Nana Dada

Regular Member

James2774

Power Member

Nana Dada

Regular Member

upcharger

Newbie

Main Menu

Marketplace

Making Money

BlackHat World