Snorvey wrote:You've just reminded me I set up a dummy HYP on a well known spreadbetting platform back in February this year.
They 'gave' me £10,000 which I spit evenly between 16 companies a form of buy and forget basic HYP criteria. Except I can't remember why I used 16 and not 15.
......And I ballsed it up on the first 'purchase' and bought a position many, many times larger than I intended. By the time I noticed, worked out what was wrong and closed it I was £600 down.
Anyway, the portfolio is currently down by £591 as we speak - so broadly level I guess. 8 winners and 8 losers on the board. Biggest winner = Standard Life Aberdeen...biggest loser = Imperial Brands.
Daily interest seems to be running at around £4.30.
Annual interest is £4.30*365= £1,570 a year or 15.7% on £10,000.
Which is challenge with this strategy. If you are running a safeish portfolio making 4% a year, you need to get the interest rate down to 2% to make money. (And I'm not even sure that works if you are a basic or higher rate tax payer as once you've filled the dividend allowance there's tax to pay and there's the matter of how to off-set the interest payments)