How to make money out of the current stock market chaos?

[PAH]

I'm sure there are some experts on here who are rubbing their hands knowing that however low the FTSE etc falls, it's bound to go back up again, so how about some tips on how to cash in?

Is spread betting still legal? With the FTSE dropping 5% a day then rising the next day, isn't this prime time for making a killing if you guess which way it's going each day? Say bet £100/point. Not really looked into it that much (as if you'd guess), but it seems an attractive proposition for the real gamblers out there.

The lower risk option is to drip cash into an index tracker once we're sure it's on it's way up and not down.

[SantaClaus]

sell, sell and sell again

[Andy2]

You would be lucky to preserve the existing cash

[AlfredJPruffock]

Momma used to say - Never catch a falling knive

[ChimpMaster]

I'm sure there are some experts on here who are rubbing their hands knowing that however low the FTSE etc falls, it's bound to go back up again, so how about some tips on how to cash in?

Is spread betting still legal? With the FTSE dropping 5% a day then rising the next day, isn't this prime time for making a killing if you guess which way it's going each day? Say bet £100/point. Not really looked into it that much (as if you'd guess), but it seems an attractive proposition for the real gamblers out there.

The lower risk option is to drip cash into an index tracker once we're sure it's on it's way up and not down.

Spread betting was never illegal. Gains are tax-free but losses cannot be used to offset gains made elsewhere.

You go make money going or long on indices (FTSE, DOW etc) or on individual stocks. To trade with a Spread Bet firm, you need to put in money to fund the trade. A £100pp bet (as you say above) would need £5000 to be sitting in your spread bet account (i.e Notional Trade Requirement = £50). You could very easily lose that £5k or more if you get the bet wrong and don't know when to stop out.

You'll find that all the part-time traders present on CUK won't be posting much these days because they're too busy playing the markets ... so ..... see ya!

[KentPhilip]

Say bet £100/point.

So you put your position on. Then we get a "bond market dislocation"

This causes the FTSE to fall by 40% to 2500 - a loss of 1500 points. So at £100/point you lose £150K.

Rocking!

But that is a worse case scenario.

[Peoplesoft bloke]

So you put your position on. Then we get a "bond market dislocation"

This causes the FTSE to fall by 40% to 2500 - a loss of 1500 points. So at £100/point you lose £150K.

Rocking!

But that is a worse case scenario.

Er doesn't it depend on whether the bet was for it to fall or rise? - could be £150k up

[Moscow Mule]

So you put your position on. Then we get a "bond market dislocation"

This causes the FTSE to fall by 40% to 2500 - a loss of 1500 points. So at £100/point you lose £150K.

Rocking!

But that is a worse case scenario.

If you've got £100 a point on the FTSE, you need to be watching it like a hawk these days...

[PAH]

Seems to me there have been some pretty straight dives or rises over the course of a day recently. e.g. FTSE currently down another 300 points (or 8%) today, with a few rises in between, but still a predictable downward trend over the course of the day.

I wish I had time to get clued up. I'm sure there are people making a killing if they have the spare cash to throw at it and not worry too much if they make the odd bad decision. Just like those that got the banks in this state in the first place!

Where's AtW? He makes it all sound so simple.

[PM-Junkie]

How to make money out of the current stock market chaos?

How about by having a sweep on which of the manic depressives here are going to top themselves first?