Many people still find the stock markets a fearful thing and choose not to invest. Property seems like a much simpler bet and people can see what they are getting for their money.
The difference with property though is that you need a big sum to invest to make some money. Sometimes in the stock market there are easier ways to make money on a small scale and in a short period.
I was up early this morning and whilst reading the Telegraph, came across this story. China Goldmines had announced an amazing find of new gold, five times more than expected.
Thus is seemed very obvious what would happened when the markets opened. So I went to a broker similar to this one, opened and online account in 10 mins and put forward some cash (...from my overdraft facility, in case you think Mrs. Slicker would leave me with any pennies between paydays).
This took no time at all, the market were already open and the stocks had shot from 120p to 140p. I bought at that price and after hitting 172p, they closed at 167.5p today. This left me with a paper profit of 37.5p per share in a single day. Assuming I had in the region of 700 shares, this left me with a profit on paper of £213.50, less the costs of setting up the account, buying the shares and the cost of the overdraft (about £45). The overdraft is not payable until the month end so if I sell the shares tomorrow, the total costs will be about £32 ( a 21% profit overall).
So £180 for doing very little indeed, certainly no real knowledge of the market, just reading the business pages and reacting to it.
Now perhaps some of you will understand why I am so keen to look through all the business pages at the weekends....
PS All blue skies have clouds that intervene eventually, I came home to find Mrs Slicker in possession of several bags of 'strictly necessary shopping purchases' - no doubt with a cost of considerably in excess of £180.