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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: John Walliker who wrote (8113)	10/11/1999 7:01:00 PM
From: Daiju Kohno	Respond to of 54805

John, margin use is definitely more risky than investing without it. I make no attempt to say otherwise. However, the extra risk of having -$$$ rather than 0$$$ is to me, a small risk. Frankly, if my portfolio drops to 0, I don't care whether I'll be in the negative or not. So, IF the market tanks, and IF one loses everything, then yes, it is better that the investor didn't use margin, otherwise he'd be negative right now. However, imo, that is a small risk compared to the large upside potential. I believe that LEAPs, from what little I understand, may be a less risky way of leveraging one's money. However, to be honest, I just can't seem to firmly grasp all that options/LEAPs strategies. It is for that reason that I stick to simple, old-fashioned margin. :) Thanks for your contribution. Daiju