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Non-Tech : Datek Brokerage $9.95 a trade -- Ignore unavailable to you. Want to Upgrade?

To: Herc who wrote (13220)	9/30/1999 2:24:00 PM
From: Jim S	Read Replies (2) \| Respond to of 16892

I don't use margin because it limits the patience often required to make money, and it costs money. Good for you, Herc. I suppose that should be a good reason to make sure NOBODY can use margin. If you don't use it, I guess that's a good reason for Datek to limit everybody else's use of margin. jim

To: Herc who wrote (13220)	9/30/1999 11:45:00 PM
From: MStonek	Respond to of 16892

<< ... I don't use margin because ... it costs money.>> I'm perplexed by this statement. Unless you live in a cabin that you built yourself eating your own fruits and vegetables, you yourself consume items that cost money. Obviously, there's nothing wrong with that, as long as you're getting something that's worth what you're paying. I trade on margin. Why? Simple arithmetics. I pay 7-7.5% to borrow money to be able to invest it in something that has returned 10-12% historically, and much more in the last decade. It makes sense to me. The worst enemy of trading on margin are the margin calls, which will make you have to sell usually at the worst time. To avoid that, I watch my buying power to make sure I'm not even close to getting called. Regarding shorting, it has me very annoyed. I have about 10 stocks, which I shorted back in April. Now, 6 of those stocks cannot be shorted, even though some of them have a very small short interest. Even a stock like KLAC, well known and not very volatile (and with a relatively small current short interest), cannot be shorted. Doesn't make much sense. Michael.