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Strategies & Market Trends : MARGIN - Do's and Don'ts

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To: Vol who wrote (2)11/14/1997 3:01:00 PM
From: Dale Baker  Read Replies (1) of 35
 
I learned the lesson about not having cash around. I'm building up cash now and holding it for opportunities in the near future instead of staying fully invested and picking up each new interesting company I come across.

Problem is, you need a crystal ball to reconcile market valuations and outlook. Why was QNTM worth 25 a few days ago and 30 today? In fact, it's probably worth a lot more. Deciding whether to buy at 25 with margin is the hard call. You would have made 20% in a few days. On the other hand, if QNTM kept tanking with the rest of the DD sector, you could be facing a margin call.

That's one of the core dilemmas in this issue. No answers yet but I'm open to suggestions.
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