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Technology Stocks : WAVX Anyone?

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To: SlateColt who wrote (5700)2/26/1999 12:01:00 AM
From: GerryMiles  Read Replies (1) of 11417
 
What if Fred uses his brain and borrows 1-2k shares? Fred still gambles, but it is controlled. Fred knows that he would have time to correct his position in case of a pullback. Fred also knows from experience that WAVX's float is broken and that upward explosive movement is starting to look compelling. Tis crazy to borrow half of your equity on any play. Your theory makes little sense. If you go margin stock B using equity from stock A, and A falters and B stays neutral or falls, you get that same call. If your gut says upward movement, margining WITHIN YOUR MEANS is fine. There is always risk in margining, but if you have the instinct and the guts, it can always be a sweet play:)
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