ASX 3.67% $63.45 asx limited

cfd's or small shares ?

  1. 6,951 Posts.
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    Small shares have to perform very well to give higher Returns than some of the CFD' shares which are 20 times levered . Have a look say at BHP and compare it with some of the mining shares , it does depend on the exact times however BHP could have been a better performer than SMM for example over some of the time . Also there is not the same risk and the problem of possible collapse is not so prevalent in large shares .Many peole deal in small shares because of the high possible profits and sometimes high losses . CFD's do give great possible profits in Excellent shares . For example BHP was say $16.05 on 16/05/05 and on 24/08/05 it was $20.56. A rise of 28% .
    This would have transformed a $5000 investment into $28000+ a profit of $$23,000 . Small shares have to be very good to beat that and then there is the risk and the dealing problem of small volumes at times in small shares.
    Something to think about
    B2
 
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