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Strategies & Market Trends : Investing for the Long Run

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To: tyc:> who wrote (61)10/25/2007 8:01:05 PM
From: tyc:>  Read Replies (1) of 68
 
Blog continued...

Message to myself;

One disadvantage of being fully invested with a trading system is that to buy a stock you have to sell a stock... hence double commissions.

In future, I shall continue to buy my benchmark whenever I sell stock on attaining an intemediate sell point (I don't want to hold cash). However, to buy a stock on its drop to a intermediate buy point, I shall use margin. I shall settle my margin account once a month, with a single sale of my benchmark.

My primary aim is to reduce commissions, however like everyone who trades stocks, I have more confidence in my benchmark than I have in cash anyway, doubly so when I expect a drop in US dollar currency. If I'm right, on balance I should make money by using margin in this manner. We'll see.
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