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Investing on Margin
Posted on 9/22/09 at 4:12 pm
Posted on 9/22/09 at 4:12 pm
Do any of you do this?
We learned about it today in my Investments class. Interesting idea, but seems a little too risky for my tastes.
Looking back to the crash we experienced earlier this year, if there was ever a good time to invest on margin I would imagine that would have been it. Not too huge a threat of the market continuing to completely fail and a very likely chance of the market recovering and growing in the future.
^^ I am sure some of you will disagree with that part of my statement, but nonetheless I am just wondering what the consensus is on this topic.
We learned about it today in my Investments class. Interesting idea, but seems a little too risky for my tastes.
Looking back to the crash we experienced earlier this year, if there was ever a good time to invest on margin I would imagine that would have been it. Not too huge a threat of the market continuing to completely fail and a very likely chance of the market recovering and growing in the future.
^^ I am sure some of you will disagree with that part of my statement, but nonetheless I am just wondering what the consensus is on this topic.
6
Posted on 9/22/09 at 4:22 pm to lynxcat
I don't do this anymore. It requires too much attention and I didn't want to be dead by the time I'm 40 from all the stress.
Go for it!
Go for it!
Posted on 9/22/09 at 4:26 pm to LSUBanker
quote:
I don't do this anymore. It requires too much attention and I didn't want to be dead by the time I'm 40 from all the stress.
Couldn't you just put in a stop-loss order if you are too scared of losing all your $$?
Posted on 9/22/09 at 4:35 pm to lynxcat
People were opening up margin accounts like it was going out of style as the market marched to its high and then got crushed obviously especially with margin calls coming forcing sale of assets
Point is don't invest (educated gamble) with money you don't have
Point is don't invest (educated gamble) with money you don't have
This post was edited on 9/22/09 at 4:36 pm
Posted on 9/22/09 at 5:00 pm to lynxcat
quote:
Investing on Margin
For professionals only.
The only exception would be arbitrage options trading, which I would assume you would be a professional to have to be in any way.
Posted on 9/22/09 at 5:03 pm to ManiaTiger
quote:
People were opening up margin accounts like it was going out of style
At least they were right about one thing.
Posted on 9/22/09 at 5:03 pm to lynxcat
not if I can help it. I lose enough money by myself, thank you very much.
Posted on 9/22/09 at 5:04 pm to lynxcat
I use my margin account to buy every now and then but it's usually for just a day or two.
If you had been on this board in early March you would not be making a statement like this:
If you had been on this board in early March you would not be making a statement like this:
quote:The consensus on this board, at least from the regular posters, was that the market was going to go to "zero" or near to it. When I posted a thread in February that the time to go "all in" in the market was before the end of March, I was told to F.O. by more than one poster. And one wrote, "there won't be a stock market by the end of March."
Looking back to the crash we experienced earlier this year, if there was ever a good time to invest on margin I would imagine that would have been it. Not too huge a threat of the market continuing to completely fail
Posted on 9/22/09 at 5:09 pm to LSURussian
quote:Link? I searched for this phrase and found bupkus.
And one wrote, "there won't be a stock market by the end of March."
Posted on 9/22/09 at 5:14 pm to Cold Cous Cous
Posted on 9/22/09 at 5:17 pm to LSURussian
The other verbatim quote was "It was a joke.. kinda."
Posted on 9/22/09 at 5:22 pm to LSURussian
Buffet's greatest quote
Posted on 9/22/09 at 8:56 pm to ManiaTiger
quote:
Point is don't invest (educated gamble) with money you don't have
Agreed.
So here rises another question...could you instead have a stop-loss order 'higher' than the margin call price to somewhat 'hedge' your losses?
I feel like I have a decent understanding of investing of margins considering today was the first day I had ever even heard about them, but I just want to see how much I actually have my head wrapped them.
----------
THF, the class has been good so far. It has moved a little slow but it is at least throwing some new concepts at me.
This post was edited on 9/22/09 at 8:57 pm
Posted on 9/22/09 at 8:58 pm to LSURussian
quote:
When I posted a thread in February that the time to go "all in" in the market was before the end of March, I was told to F.O. by more than one poster.
I called the bottom at 6,500 on another board and predicted a bounce back to 10,000. I really based it on pretty shotty info and opinions of people I respected, but I have basically been finance god on that board ever since.
People talk about my mystical posts like the rantards talk about Heung Soro. What they don't know is that I quit posting on there because I was so red hot that people had started to take my word as gospel and were going to be real mad when I started to be wrong again.
I've been thinking about doing a pump and dump, but my morals keep holding me back.
Posted on 9/22/09 at 9:11 pm to Cold Cous Cous
quote:Key word = 'kinda'....
The other verbatim quote was "It was a joke.. kinda."
Posted on 9/22/09 at 9:11 pm to ManiaTiger
quote:
Buffet's greatest quote
Posted on 9/22/09 at 9:28 pm to LSURussian
So is now a time to be fearful since I'm starting to feel greedy? I'm seriously considering margin in a few weeks. Loading up, looks like I can buy an amount equal to my account value so 100% more gains, 100% more losses.... I live dangerously
Posted on 9/22/09 at 9:32 pm to wizard of smart
quote:Maybe you're just saying it differently but, by law, stocks can only be bought on 50% margin, not 100%. You put up a dollar and you can borrow a dollar to go with it to buy a stock. Is that what you're saying?
Loading up, looks like I can buy an amount equal to my account value so 100% more gains,
quote:Yes.
So is now a time to be fearful since I'm starting to feel greedy?
Posted on 9/22/09 at 9:37 pm to wizard of smart
I would just look into options, but I haven't kept up with the options market in a while, so I can't tell you how suitable they are these days. I stopped caring when the VIX was through the roof.
Posted on 9/22/09 at 9:42 pm to TheHiddenFlask
Vol has come down tremendously (I'm sure you know that, I'm just sayin), options are a steal compared to what they were even 3 months ago.
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