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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Darth Trader who wrote (16080)	1/1/1998 10:28:00 AM
From: Logain Ablar	Respond to of 50167

Darth & Thread: Happy New Year everyone. Good point but one must always weigh the risk with the reward and an investment versus a gamble (always a fine line and easy to see in hindsight). I personally have a problem with seeing all of the risk in an investment <gg>. Tim

To: Darth Trader who wrote (16080)	1/1/1998 11:17:00 PM
From: Investor2	Read Replies (1) \| Respond to of 50167

RE: Borrowing money from a credit card to buy stock. "Not even to become a professional trader? People borrow money all the time to start a business. It's called risk <ggg>" No, not even to becom a "professional trader." Most credit card interest rates are in excess of 15%. I think the average is 18%. Considering that the average cost of margin is much, much lower than 18%, I doubt very seriously if any "professional traders" use credit card debt to fund their trading account. How much return are you expecting to get on your investments? If you average 24%, which is highly unlikely, then you will be realizing a net positive gain of 6%. Why put money at risk to earn 6%, when you can just buy T-bonds, garanteed by the U.S. government, which will pay 6%? In my opinion, anyone who borrows money from a credit card to buy stock is a fool. Best wishes, I2