<<< But for stocks, it's different. Using the broker's money with interest of course. Have you used stock margin and what is your experience? >>>
To continue our margins discussion, in this case on a major stock account...
1. The last stock I will ever sell is Dell, all else goes first
msft, aol, the whole equities bundle to keep the Dell.
2. I use as much margin as I feel safe with. Which means Dell could drop around $25/sh without a margin call.
3. I actually am never totally happy while in margin, but
that's just paying with a bit of pain for the privelege of making xxxxxx$ not otherwise achievable.
4. I have plenty of other assets around to cover (several times
over) the amount I owe on margin. BUT I don't WANT to sell the Msft, the Yhoo, the AOl, or get a loan or whatever.
5. The matter of deciding how much margin to use is an individuals choice, based upon ones other assets and income,so I can't really help much.But if we are only talking Dell, I would
try to not be in a position of getting a margin call with Dell still above $66, maybe $72 tops.
6. Now you see the limitations here, as I am no help whatever
to someone trying to achieving instant wealth by maxing out a margin account and having to worry when Dell drops $10 sh..
To do that I would buy calls and writeoff a possible loss
at the instant of buying them. Then pray a lot.
(it's hard to write this stuff and still have it decipherable)
Regards
Sig |
