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Strategies & Market Trends : Rande Is . . . HOME

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To: Rande Is who wrote (19551)	1/27/2000 3:00:00 PM
From: Rande Is	Read Replies (1) of 57584

. . .Clarification. . . My statement about "idiots using margin money to buy breakouts" of high fliers on Monday morning needs clarified. I have been outspoken against margin trading in general. But this was a specific hypothetical reference to buying breakouts of the stocks listed on that post. . .the high fliers that had just seen a blow-off top. Buying here on margin, would have been a dreadful trade. Perhaps I should have stressed that in other ways. An example of how dreadful buying the breakout on margin was this past week. . . . .$10,000 capital placed on PLUG on Monday at open would become roughly $16,000 [or more] with margin borrowing. . . buying 100 shares at $160 per share. . . . TODAY those 100 shares would be worth $10,000. . .and if the party did not sell. . .then they realized a 60% loss in 5 days!! I have a responsibility to everyone here. . .whether you be a good trader or bad. . . experienced or a newbie. . . I will continue to be strict on suggesting traders avoid margin trading. . . but I will try not to use the word "idiot" in reference to those about to get slammed. . . or to anyone. Sorry for the inconvenience. Rande Is

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