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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?


To: Think4Yourself who wrote (2845)4/4/2001 4:06:10 PM
From: Warpfactor  Respond to of 23153
 
JQP,

Regarding the margined retail investors getting short squeezed. Some well-timed buys in the right stocks could get you a spring loaded 3-bagger in a week when these people finally give it up or get called.

Warp



To: Think4Yourself who wrote (2845)4/4/2001 4:22:13 PM
From: The Ox  Read Replies (1) | Respond to of 23153
 
I'm a retail investor who still uses margin in my account all the time. In my situation, I usually have only 15% to 20% of my investment money in this account at any moment, with the rest parked in other investments or cash (it's almost all cash at the moment) in different institutions. If someone were to evaluate my retail account, they would think that I'm 'reckless' with the way I play margin, but of course if I ever get a margin call, it's only a matter of transferring funds from one location to another. At the same time, when my retail account gets too profit heavy, I transfer money out of the account into my other locations.

While it may be true that the 'average' retail investor won't get off margin, I have to wonder how many are handling their accounts in a similar manner?



To: Think4Yourself who wrote (2845)4/4/2001 7:03:02 PM
From: Tommaso  Respond to of 23153
 
It doesn't have to be shorts. Just a little selling and a general slackening of interest in buying can drop the prices and set off margin calls that can no longer be met. (As we all know).