SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : The Critical Investing Workshop
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: stockman_scott who wrote (11327)4/6/2000 11:53:00 AM
From: TigerPaw  Read Replies (4) of 35685
 
: Margin Calls
I think there are many people think they have to get rich soon before the bubble bursts. There is still plenty of time left in this great economy. There is really no reason to borrow a lot to get great returns. Margin is a usefull tool in certain situations but it should never be a permanant strategy of one's portfolio.
There is a math proof or trick if you like, called the gambler's falacy, that shows how surprisingly quickly you will lose all of your chips if you consistently bet even if you have a 90 or 99% chance of winning. The margined portion of an account is a gamble, because as stocks go up and down, margin never goes down but only grows as the interest payments pile up. Even if you pick winners nearly all the time the margined portion of your account will tend to zero as the market does it's random walk.
TP
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News