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Strategies & Market Trends : MARGIN - Do's and Don'ts
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To: Oak Tree who wrote (13)9/10/1998 8:45:00 PM
From: freeus   of 35
 
But beware of selling stock to cover margin calls. You are selling a stock that (presumably) you like and expect to go up at a low, and you reduce your ability to borrow. It would be better to sell covered calls, or add cash. Anyway in this crazy market one day you may have a margin call and the next day its off. Unless, as what happened to you, a stock you have became unmarginable.
Be careful of margining with small companies though. I got burned with that. Much safer to margin to buy Msft, Dell, Csco, etc.
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