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Strategies & Market Trends : Margin Calls - Share The Pain

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To: daffodil who wrote (131)12/12/2000 1:31:34 PM
From: marcos  Read Replies (1) of 158
 
Leverage can act to ensure that when you're right just a little too early you get proven wrong ... it's an empty victory to see your position win out after you've dumped it to cover the margin call during the little capitulation spike that often comes before the best moves ... for this reason i have a firm rule against using margin ... of course i break it all the time, but always with a ready exit strategy and a bit of a tingly feeling ... very very rarely over a weekend or through a period when i'm away from the computer.

Great thread, daffi ... a few nights ago i tripped over the old Discuss y2k Issues thread, kind of nostalgic, i enjoyed your posts over there ... Henry Volguardsen might have an interesting perspective on margin, currency trading works on leverage of 19-to-1 or better .... also back on some thread TLC has an outstanding story of a short squeeze where leverage played a major role in a one-hour wipeout of an account.
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