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Strategies & Market Trends : The Amateur Traders Corner -- Ignore unavailable to you. Want to Upgrade?

To: Blue On Black who wrote (14316)	9/29/2001 1:23:26 AM
From: Druss	Respond to of 19633

Lee--I got that one too. As someone who makes it a policy to never go out on margin, I can't help but think this is a rather stupid idea. Am I the only one who recalls the posts I saw on the net about people posting they were wiped out? People who had run so far out on margin that when things went awry they were had. Let me see if I can recall all of the terms: 'Buy the dips," "This is just a head fake" (damned if I ever did find out exactly what that meant), "Greenspan knows what he is doing, there won't be a bear (or downturn, or recession, or depression)," "there is so much more room for growth in the economy" the ever popular "This is the next Microsoft, Cisco, or Amgen," "It's the new paradigm," "Fundamentals are an outdated concept," and of course "Close your eyes and buy." All the Best Druss

To: Blue On Black who wrote (14316)	9/29/2001 7:39:23 AM
From: RockyBalboa	Read Replies (1) \| Respond to of 19633

Well. I see that. But you know, this is only Day trading margin. Keep the shares overnight and you incur a fed call. But the US brokers are actually making up. A European online broker allows me to trade stocks long & short, including US stocks with as little as 20% equity, in other terms, 500% buying power. And the best of it is, this is not for daytrading, but I can keep the positions as long as I want.

To: Blue On Black who wrote (14316)	9/29/2001 8:36:53 AM
From: Tom Hua	Read Replies (2) \| Respond to of 19633

Good morning Lee, as Chr. mentioned, the new added buying power rule was intended for daytrading only. I suppose a good portion of daytraders have been wiped out the last 18 months, brokers see significant drop in revenue as a result. The new rule allows them to pick up more business and of course the danger is more daytraders will soon disappear altogether at 4 times the previous pace. Reporting season is upon us. It's no secret that companies will guide down Q4 and repeat the no visibility tone when they report this month. How will the markets react to this? Who knows. In general, I'd think the negative guidance can't help equity and markets will be lower in October. However if there're positive developments in the war against terrorists, earnings warnings will be ignored. If bin laden is caught, the Dow will surge 1000 pts overnight. The only thing I can say with certainty is there'll be lotsa uncertainties in the next 3 weeks. With that in mind, I try to balance my portfolio with longs and shorts. As for Fed cut, for the first time we have a split poll here, another indication of uncertainty. Poll: 3 for 0 bp 6 for 25 bp 6 for 50 bp Regards, Tom