On 24/10/2016 14:16, GB wrote:
On 24/10/2016 14:09, Simon Mason wrote:
On Monday, 24 October 2016 10:29:47 UTC+1, GB wrote:


So, you have in effect

borrowed £5k interest free for 4 years to invest
in BP shares. That's a pretty high risk strategy. High risk = you will
make lots of money some of the time and lose lots other times.

Bought £50000 in BP shares on 14JUN16, sold them for £4.93 today.
£19000 profit + £1000 divis = £20000.

https://pbs.twimg.com/media/CvWDhGUWEAArWYo.jpg


Tremendous. Well done. Nevertheless, the point about free money is not
right, as it ignores the investment risk.




Massive oil company shares are totally under the control of the oil
price and the value of the US dollar.

Weak Dollar = Strong commodities (and oil)
Strong Dollar = Weak commodities (and oil).

Just watching the £/USD FX rate gives you a good idea of
when to buy/sell oily shares.

In Jun 2014 you got £1.70 for a dollar and RDSB share price
was over £26. Good time to sell and move into airline shares.
IAG was about £3 at that time, by Jun 2015, IAG shares were £6
and oil while commodity shares were sliding and hit a low point
in Feb 2016, when you could buy RDSB shares for just over £12
and BP shares just over £3. They were £22 and £5 early in July 16.

Don't forget CGT on your £19,000 profit. £11,000 is tax free but
you will have to pay 10% on the other £8,000, unless your total
income puts you into higher rate tax, when the rate will be 20%.