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2024-09-09 14:59:32 - Paul D. Foy -
Trading

I read comment advocating Marks & Spencer as a good investment, which I broadly concurred with. However the strategy to benefit from M&S's good prospects was suggested that I should take a long OPTION on their shares. That is (for a small price) agree to buy their shares in the future at today's price. Thus if the shares rise appreciably I shall do well and would have a geared investment because the sum put up to achieve the appreciation is much less than the share price I would have to pay to own the shares. Presumably there will be some mug somewhere that loses out. But if the shares go down I lose heavily. I didn't do this, I bought the same number of shares directly (as I believe in the investment). To me this trading is gambling, and how far does one take it - do I buy options on the option for even less and have an even more leveraged investment. There is usually a time limit to these options so if things go wrong - you are not left holding the same share of the Company (it's just worth less but that might be temporary). One could argue that you need less capital to do this - but that's poor form its like borrowing money to buy a property only to rent it out to someone else to pay your mortgage - you don't really have the money you are just putting the burden on someone else. So I think 'investing', being a shareholder does have responsibilities. I should add that I have traded by buying and selling a wildly fluctuating share price when I thought some kind of irrational exuberance had inflated or depressed the share price beyond reasonableness. But I've usually done this with the same share, one that I own and one I end up owning some of going forward. You've got to start small and cautiously, there's no escaping that I feel. About £1000.



2024-09-13 11:26:42 - Paul D. Foy -
As St. Ledger's day approaches the serious investor should by now be fully invested. For the gentry are returning from harvesting their crops, a flush with ready cash, and beginning to speculate on stocks and horses. There is a general adage sell in May and come back on St Ledger's day. But the wise will operate counter cyclically to this to better profit from this trend. The St Ledger event was initiated in the late 1700s in Doncaster (shortly after it's magnificent mansion house was completed), and is a race for thoroughbred colts and fillies. Notable participants early on were the Marquis of Rockingham and the 4th Earl FitzWilliam (of the imposing Wentworth Woodhouse estate).







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