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To: Cader who wrote (3303)3/4/1998 4:27:00 PM
From: TFF  Read Replies (1) | Respond to of 12617
 
10:1 margin = quick way to go broke... a loss at 50% margin is double, so a 2%loss is a 4% one from capital. At 10% margin, the 2% loss becomes a 20% loss. Scary.



To: Cader who wrote (3303)3/4/1998 4:30:00 PM
From: steve goldman  Read Replies (1) | Respond to of 12617
 
10:1 margin? Anyone who considers this should simply consider going to Jimmy the bookie. He'll give you betterleverage on your cash, you might get a few bones broken, but hey, its 10:1.

10:1, means if you take a position and it gets knocked around 10 bucks, ie. you buy a ten dollar stock and it falls to 9, you are done.
you're not out 10% , you lost 100%.

Tommorrow will be ugly, exactly the kind of day that traders should love.....i say down 100ish at the open... Dell is down 5 after hours...thats not too bad, still up 3ish after todays 8. Coms down 2, nvls down 2.

regards,
Steve@yamner.com