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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Daiju Kohno who wrote (8106)10/11/1999 5:28:00 PM
From: John Walliker  Read Replies (1) of 54805
 
DK,

Sure, you can lose everything if you are fully margined on a stock that nosedives to near 0, ...


What you do not say about margin borrowing, compared with holding stock or even options is that you can lose MORE than you have in your account.

This why I have now (mostly) given up using margin and use LEAPS to achieve leverage instead. (Yes, I know its not true GGing.) But the worst case downside is clearly defined and its not a negative number.

John
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