comments and a request.
I've been looking at many messages on SI and on Yahoo boards today
and a recurring comment is that margin should be avoided. I
agree to the extent that novice traders should probably avoid
margin. But, for experienced traders or longer term
investors, I think now is a good time to judiciously use margin.
Having said that, I would suggest certain conditions: (1) use it
only for name brand stocks, (2) allow plenty of cushion to be
sure to avoid forced margin calls from downward gapping stocks,
(3) set close stops and/or be quick to bail from losing trades, and, (4) protect your profits.
Now for the request...I have a lot of cash in a longer
term account and am looking at several stocks for 6-12 month holds. The ones I'm considering are CPQ, DELL, EMC, INTC, LLY, MSFT and WMT. Any thoughts on these or suggestions for others? And, no I'm not
considering short term trading with this account. Being a former
academician, I'm not accustomed to working very hard in the
summer <g>
Just my thoughts for use of margin and TIA for long term thoughts.
Tom |
