View Single Post
Unread 9 Oct 2008, 22:33   #22
Zar
Chief over all Monkeys
 
Zar's Avatar
 
Join Date: Apr 2003
Posts: 1,771
Zar has a brilliant futureZar has a brilliant futureZar has a brilliant futureZar has a brilliant futureZar has a brilliant futureZar has a brilliant futureZar has a brilliant futureZar has a brilliant futureZar has a brilliant futureZar has a brilliant futureZar has a brilliant future
Re: How to make some money

Quote:
Originally Posted by Tomkat View Post
Would you recommend any type of mining or just general mining?

I've bought some shares in RBS as they dipped to 90p today and I'm hoping that in the next 12-18 months they'll go up again! Is that really dumb?
Risky. V. Risky.

If it pays off and RBS manages to stay afloat then you'll do extremely well out of it. RBS finished up 8% today so if you bought around 90p (which I doubt as it was auction) you've already made 8%. HOWEVER be aware that this is one of the less safe british banks around and there is a chance RBS could collapse or becoming heavily nationalised in which case you'll end up losing a fair bit of money.

This isn't a bank that should be considered a long term (rational bet). Unless you're a trader with good information this is a punt.

Two scenarios:

Scenario 1) You have spare cash and you're willing to take a punt on it. Hold. There is going to be a massive rally soon. It might only last a day or two but there will be a rally. Sell on the rally

Scenario 2) You've a nervous disposition. Sell ASAP as this could implode in a worst case scenario leaving you nursing massive losses.

Ask me next time before you invest anything and read what I wrote above yesterday (that list didn't even include RBS)!

Quote:
Originally Posted by Zar
Edit: A note of caution. These are still moderately risky purchases. Darling (Labour) being the idiot that he is will probably look to help recapitalise the banks (partially nationalise) which would dilute equity for the current shareholders. This could help force the share price down (as evidenced today). However after that has happened they would become good buys.

Last edited by Zar; 9 Oct 2008 at 22:55.
Zar is offline   Reply With Quote