Ed,
Margin....thats the key. Currently, I am on margin which explains my hesitancy. My margin level however is actually very low....in other words, I am trying to be as safe as possible. The amount I have on margin, I could currently cover with a credit card or by transferring some stock from my non-trading account which is zero margin. My strategy is to use at least some margin to try and recoup some losses.....once I actually get something that actually goes up instead of down, my plan is to sell and get 100% off margin.
So, you can see where I am coming from....although I am in no immediate danger of a margin call, should we keep on tanking all the way down to 2000, maybe I could get hit with a call. Buying more on margin, only raises my margin level and lowering my equity level, making it easier to get a call should the market tank, so with this in mind, comes my hesitancy. I know margin should not be used.....I plan on being completely out of margin eventually, but for now, I do not want to sell anything at a loss, and want to actually use margin with discretion to try and recoup some losses.....
Thanks keith |
