Morning John
I have combined these two points together - being the final parts of your comments
First of all - regarding purchasing property and getting a mortgage. Ever since the crash in 2008 -09 all the finance rules have been tightened up and things have changed dramatically etc etc. However this should not stop you getting a mortgage.
The last one I took out in 2002 was a specialist one for self employed business people and proof of earnings was not required - but instead just 2 years of bank statements and I got £420k as long as I was able to to place equity of over 35% of the lowest value of the property the mortgage was on.
At that time there was so many silly mortgages available - ie even 105% and 120% ones - no wonder the finance industry went pear shape.
Banks are one dimensional - you need a specialist and I am sure as long as you have over 30 -40% of the capital required of the value of the property you will get a mortgage - its a no risk deal really. I remember over 30 years ago my Father being offered a mortgage at the age of 75 yrs old - and nowadays they are saying in the future people over the age of 45 yrs old might not be able to get them - totally silly
That's going from one extreme to another. Property in the UK will always rise in value at least every 10 -15 yrs - so its the least risk lend available - as long as the lender has the safety net of good equity already in the property.
I have never been in the property business - but my cousin who owned a building company has been in it for over 30 years and has done extremely well. Rent is dead money - but then if you have ways of making great money and other investments yielding great returns - rent is just another cost - like spending money on clothes and food - we all have to do it etc.
My recommendation would be to search through the internet for a specialist mortgage advisor who thinks outside the box and has the right contacts - even if its overseas monies.
Whilst we are on this subject - I borrowed one and half million pound along with two other directors of my company ( I had 58% of the shares ) in 1996 and repayed it back in approx three years. I have just been reading this week that Ron Dennis - who is the CEO of McLaren FI and car manufactures is looking at borrowing 260 million pounds - to buy out his fellow shareholders in the company. Mr Dennis is 67 yrs old and although a multi millionaire - worth about 50 million - that's a massive risk to take on and his age - but all achievable.
It's amazing really but whilst I was a big risk taker in my previous early business career ( nothing compared though to when I worked with Branson ) I could still not stand the pressure of trading with over £170 per pip using my own money and seeing how it easy it could be to lose £10k in a day etc.
OK - if its not your own money - its not quite so bad and so I can understand traders in the city having 500 lots on trades and not even sweating - simply because they have no direct emotional attachment.
I have said many times on this forum - retail trading and commercial institutional trading is chalk and cheese. We - as retailers can use leverage so we don't have to have millions of capital - but normal retail electronic platforms only allow you up to 50 or 100 lots per pip or point.
I have never worked in the industry but know it different for the commercial institutional traders who will have different arrangements with their ( own) liquidity providers. I am sure you cannot just drop 1000 or 5000 lots per pip on the Pound and have it all on in and out in 2 mins and scalp the market - like we can with 10 lots. Like I mentioned before it would more than likely be drip feed in over a time period of 30 / 60 mins or so - but all depends on the market conditions etc etc
I would love to know more - but have only had the proof from one of my distant friends who made approx £400k on the GU on the last UK election. This guy is a extremely wealthy quarter billionaire and has an annual 12 million a year gambling budget . His main joy is fruit machines - yes he has won over £100k many times from casino machines and even made the national papers after winning £1 million on the tables at a Star City Casino one night in Birmingham a few years back.
He is still only about 45 yrs old - sold out his main business over 7 years ago and enjoys Vegas normally 6 times a year - and yes get invited on a freebies over there as he's a well known high roller - whether they all know he has a photographic memory is another story lol. I have never been there with him as he his totally out of my league - but our daughters are still close friends from prep schools -so I get to hear still of all his latest exploits.
There are suppose to be some genuine institutional FX traders who visit this forum at times - it would be great to hear if they have traded say 1000 lots per pip or more ( ie approx £6300 per pip) and made say half a million in a session ;-)
Pity HFT bots cannot blog lol
Regards
Peter
Good Morning peter,
I think the difference is, you have been around the finance/business industry, and have the contacts, where as I've had to seek council in matters I have no experience. I was told the self certifying days are long gone(whatever that means), and we are days away from exchanging.
The purchase is just to pacify my nagging mother TBH.
I know a lot of successful traders take out capital, and invest in other avenues, but this is not what i want to do, I just want to keep all my money with the broker, and just trade.
Sure there are people who tell me the broker could go bust, and keeping 6 figures with them is absurd. In my defence, I've pulled out more than my original 5 figure deposit on numerous times, thus if anything "even if they go broke, they have given me far far more than I've ever put in". I do not trade with other peoples money, and when asked I have refused completely, citing I am not FCA registered, for the adamant ones.
Nowadays my propensity to take risks is quite low, but sometimes I do think about throwing caution to the wind, and just going for it.
There is a trade set up I see that comes up infrequently, but has a 89% success rate, and sometimes I do feel like just risking a few £k on this trade, but no one on this forum seems to want to talk about "how heavy people can go", I do take your comments on board, and I would risk £500/pip on this trade, my reasoning being, well it's only money the markets have given me, but having advice from people who have been there will make me avoid pitfalls.
Re, you friend, wow, I can admire his balls, but could never want to emulate him. The same way I love Vegas, like watching poker, yet have never gambled, or have any intention to. I like the odds in my favour.
I agree, it is quite a shame, that industry professionals who grace these boards, aren't willing to share their industry views, as I would love to hear from them too, but even if they don't wish to speak, no problem, I will forge forward, and blaze the trail I need to, to reach the goals i want to.
Best
John
- but its not so efficient on the commission slice to the broker and so thats why I prefer scalps with wins over 7 pips 
