Taking out a prosper loan to buy stocks

[QuadNine9]

Why don't you buy the stock on margin? If you can do this, you can take only half the loan amount and play less absolute dollars in interest for that loan. Then you use that money to buy the underlying stock on 50% margin. You would probably pay less interest on the margined part of your stock purchase than you would if you took out the entire amount and used it to buy the position without margin.

[bad beetz]

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Prop bet. I will not accept any bets without being offered odds. Just because I am confident in my ability does not mean I think a 1:1 bet is smart.

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Dude if you really are confident about your investment plan's ability to make 20%, you should jump at even money odds...

It's an easy way for you to tack on another $1k to your winnings from this project. To want odds from me implies that you think you're an underdog to make 20% ROI.

It's irritatingly inconsistent with the rest of what you say.

the quote should really read
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Prop bet. I will not accept any bets without being offered odds. 2+2 made me doubt myself pretty hard and I PROBABLY can't hit 20% ROI... but I MIGHT! so offer me odds please

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I wonder what the correct line actually would be.

[bad beetz]

Oh yah.... actually. If your credit is super solid then you may have a 20K backed card, which almost always will offer you "convenience checks" for no interest for one year (note that the interest still accrue and if you don't pay it off in a year you're toast, but as long as you come in under 365 days you're looking at 0 interest!)

So if you have a short term play this would be a much much much much better place to get the money, just make sure you can cover.

If they don't send them regularly to you in the mail just call the number on the back of the card and ask if their available. Fill one out for the whole credit limit and deposit in your brokerage. blam, money. Just make sure you read ALL the fine print.

If you don't have a huge limit on any of your cards just take your biggest one can call the number on the back of the card and see if you can get an increase.

I just edited this cause I wanted to note that I'm still against you playing the market in any fashion as I think you've demonstrated that you don't have enough background to beat the market repeatedly... I feel like I know more than you but yet for [censored] sure I cannot beat the market. That's why I just take my money and buy 1/2 of whatever haakee buys. :-)

[jba]

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Fill one out for the whole credit limit and deposit in your brokerage. blam, money. Just make sure you read ALL the fine print.

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there is almost always some kind of fee for the transfer but it's always low enough to still be EV+ -- but the fee means you can't take out the whole limit. if your limit is 10k and you write a check for that and then they put on a $40 fee bam you're over your credit limit and now the whole deal is off (no more free interest). so yeah what he said, read the fine print and don't take out the entire line, leave a little buffer.

[haakee]

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I don't want to get too cocky, so I am capping myself at a maximum annual return of 35%, which I actually think is achievable based on my opinion of my stock-picking ability.

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I do believe that a small percentage of people with < $1M portfolios can achieve this return over extended periods of time. However, I believe that there is nobody in the world who doesn't already have $25K freely available to invest who can achieve this return. Reading the things you've written in this thread it's clear to any moderately knowledgeable person that you have no edge on the market.

[Evan]

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I don't want to get too cocky, so I am capping myself at a maximum annual return of 35%, which I actually think is achievable based on my opinion of my stock-picking ability.

[/ QUOTE ]

I do believe that a small percentage of people with < $1M portfolios can achieve this return over extended periods of time. However, I believe that there is nobody in the world who doesn't already have $25K freely available to invest who can achieve this return. Reading the things you've written in this thread it's clear to any moderately knowledgeable person that you have no edge on the market.

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can someone tell me how/why you would "cap your annual return?" I guess you could sell everything you own if you hit 35%, but that seems awfully stupid--yea, this actually makes a lot of sense now that I think about it.

[Sniper]

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I don't want to get too cocky, so I am capping myself at a maximum annual return of 35%, which I actually think is achievable based on my opinion of my stock-picking ability.

[/ QUOTE ]

I do believe that a small percentage of people with < $1M portfolios can achieve this return over extended periods of time. However, I believe that there is nobody in the world who doesn't already have $25K freely available to invest who can achieve this return. Reading the things you've written in this thread it's clear to any moderately knowledgeable person that you have no edge on the market.

[/ QUOTE ]
can someone tell me how/why you would "cap your annual return?" I guess you could sell everything you own if you hit 35%, but that seems awfully stupid--yea, this actually makes a lot of sense now that I think about it.

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Evan, pay attention... He provided a chart and explained why he maxed the chart at 35%, it has nothing to do with capping his actual results.

[Evan]

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[ QUOTE ]
I don't want to get too cocky, so I am capping myself at a maximum annual return of 35%, which I actually think is achievable based on my opinion of my stock-picking ability.

[/ QUOTE ]

I do believe that a small percentage of people with < $1M portfolios can achieve this return over extended periods of time. However, I believe that there is nobody in the world who doesn't already have $25K freely available to invest who can achieve this return. Reading the things you've written in this thread it's clear to any moderately knowledgeable person that you have no edge on the market.

[/ QUOTE ]
can someone tell me how/why you would "cap your annual return?" I guess you could sell everything you own if you hit 35%, but that seems awfully stupid--yea, this actually makes a lot of sense now that I think about it.

[/ QUOTE ]

Evan, pay attention... He provided a chart and explained why he maxed the chart at 35%, it has nothing to do with capping his actual results.

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If there's one thing I'm not doing in this thread, it's paying much attention.

[Shoe]

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I don't want to get too cocky, so I am capping myself at a maximum annual return of 35%, which I actually think is achievable based on my opinion of my stock-picking ability.

[/ QUOTE ]

I do believe that a small percentage of people with < $1M portfolios can achieve this return over extended periods of time. However, I believe that there is nobody in the world who doesn't already have $25K freely available to invest who can achieve this return. Reading the things you've written in this thread it's clear to any moderately knowledgeable person that you have no edge on the market.

[/ QUOTE ]

While I may or may not have knowledge, I don't see whether or not your have $25k available to invest is any indicator of how knowledgable you are in the stock market. I'm sure there are lots of people out there with the smarts who just don't have the opportunity, and vice versa, lots of people out there with the money, who just don't have the smarts.

[Reef]

please please PLEASE take this loan and come back with trip report in 3 years