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Strategies & Market Trends : Option Spreads, Credit my Debit

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To: jjs_ynot who wrote (1391)4/19/2000 5:25:00 AM
From: dealmakr   Read Replies (2) of 2317
 
dave,

My guess is that the total margin debt will show a big decline when the new data gets tabulated. I heard of some good size wipeouts from the selloff from private sources, a lot of un-millionaireing if you will. AA was correct in stating that it is the individuals responsibility to manage their own risk to leverage(margin) and not their brokers job. Money management and risk assessment are 2 survival skills that should be on the top of any trader/investors checklist for portfolio protection. I haven't done any spreading in quite a while with the volatility, but did write a lot of short term of CC's on my long equities a few weeks ago along with some short puts this week. Have taken some pain in the longs, but not a time for me to be on margin to push in a downtrending market. Margin is like any other tool for trading and should be used with great prudence after looking over all of the risk/reward ratios. Just like you can use a shovel to turn over the soil in your garden, you can also use that shovel to dig yourself a deep enough hole that you may not be able to get out of.

Good Trading

Dave
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