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Strategies & Market Trends : Analysis Class for Beginners

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To: Arthur Tang who wrote (677)12/19/1997 1:27:00 PM
From: Arthur Tang  Read Replies (1) of 1471
 
Evil empire is the greed to invest via margin account.

Temptation is to invest more; when you fell in love with the excitement of equity investments. Nice moves do not happen often, but the stories fly around. Good fortune sometimes comes easy, when the economy is good.

Then you used credit and start a margin account. Margin accounts is why 1929 collapsed. The leverage of 90% of borrowed money, soon disappear with all the assets. Even short term investment with 50% margin account is too much risk of losing the entire amount.

Horror stories often came with margin calls, next morning.
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