I don’t know if I should call this an experiment or magic
because I am going to demonstrate how to make money out of thin air.
Goal: To make as much money as I can using other people’s money
(OPM) via a credit card.
WARNING: This is an advanced strategy that is considered
risky if you don’t have money to cover the losses. I do not advise people try this, instead feel
free to live vicariously through me.
I pulled $5000 off of a Credit Card through using a balance
transfer check. I was charged a 2% fee
for the transaction however there is no interest accrued for 12 months as long
as the minimum balance is paid each month.
The theory is if I can make more than 2% in interest I keep
all of the profit.
I can’t leave the money in a bank account at 2% because I
would just break even.
I opened a brokerage account specifically for this
experiment. Had I not already had an
account with OptionsXpress I could have earned $100 through their referral
program however that isn’t an option in this scenario so we will have to work a
little harder to make money.
While I don’t like the stock market as an investment it is
the best option to make money for this experiment. Historically
the S&P 500 outperforms most other funds so I have begun the experiment with
one trade for 10 shares of SPY for approximately $141 per share. SPY is a fund that mirrors the performance of
the S&P 500.
I may choose to purchase additional shares, sell out of the
position for a different investment, or trade utilizing margin.
The experiment begins today.
