Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: tekboy who wrote (35330)	11/27/2000 12:33:27 AM
From: Mike Buckley	Read Replies (1) \| Respond to of 54805

tekboy, I'd like to highlight one part of your post. But if I had to pick one real doozy, I'd say it was loading up on too much margin when the market was too richly valued. This meant that when the downturn came I had to do precisely the opposite of what I wanted to be doing (that is, I had to sell rather than buy as all my stocks became cheaper). My reason for highlighting that is with the hope that someone who sees it a second time will take the time to dwell on the importance of the lesson you're trying to teach us. When I see you write that next time around I hope to be in better synch with the cycle, I'd like to add that a market doesn't have to be "richly valued" for margin calls to take place. It can happen in seriously undervalued markets that become even more seriously undervalued. That's why using too much margin at any time is a very risky proposition. I hope we don't have to see another lesson coming from your personal experience about that. Thanks for so frankly sharing your thoughts with us. --Mike Buckley