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Strategies & Market Trends : Befriend the Trend Trading -- Ignore unavailable to you. Want to Upgrade?

To: Ken Adams who wrote (6556)	4/16/2000 3:07:00 PM
From: Dr. Stoxx	Read Replies (1) \| Respond to of 39683

Ken, Margin gets debited at the end of each month, along with credit from interest on cash. Most months these tend to cancel each other out. Last year I was debited about $500 in margin fees, but received nearly half that in interest on cash. In addition, the margin debt is tax deductable, so figure on getting some of that back. The interest figure would be higher, but I tend to siphon off uninvested cash into either a bond fund (Northeast Investors) or an IRA mutual fund (Harbor Cap. Appreciation), both of which I strongly recommend. I should add that borrowing on margin doubled my return for 1999. With Datek, a margin enabled account treats every trade as on margin, so long as the stock is marginable. Short positions are only margined with Datek. And if I'm not mistaken, margin debt is charged to the whole position. That's partly why I don't like to hold shorts too long. Hope this helps, TC.