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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Don Green who wrote (89266)	4/29/2004 12:29:25 PM
From: im a survivor	Read Replies (1) \| Respond to of 93625

<<You are making too much about Margin. It is a key part of trading in the market. It is also know as leverage which makes the market tick. There is nothing wrong with margin as long as it is used with caution. >> Oh believe me, I am well aware margin is an integral part of the markets and probably more people use margin to one degree or another, then dont.........but, most are not "cautious" as you said.....greed takes over.......I have no problem using margin when I feel the time is right, and I would only use margin assuming I had the money someplace else to cover it.....If I have $500k sitting there, I am not going to worry about using $25k margin for a trade...but, too many max themselves out and it can get very ugly.....Margin is great in a bull market, but tough in a "who knows whats going to happen" market, as we have now.....when you use margin for a buy, you have to be extra careful.....you have your comission on the buy, the interest on the margin borrowed, the commission on the sell and then the taxes paid on any gains...With margin, you cannot be patient...if it goes against you, you must bail and take your losses or they can really mount up...on the flip side, in a very bullish market you can do well as very nice gains can be made...I know LOTS that made a killing in 03 using a good chunk of margin....and they lost most of those gains since 04 started.....No biggie...like I said, to each his own...I have used margin in the past and will again in the future I am sure, but never will I use it to the degree where I have to worry about getting a margin call........