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To: arthur pritchard who wrote (105304)	2/26/1999 11:35:00 AM
From: T L Comiskey	Respond to of 176387

arthur......OT....have read your post...see you this evening...?...Tim

To: arthur pritchard who wrote (105304)	2/26/1999 11:50:00 AM
From: OLDTRADER	Respond to of 176387

If you decide to use margin I would suggest you keep your margin/equity above 60% at all times or just go ahead and sell the latest batch of shares to meet the rare but should be expected decline.Going to work.Bestwbm

To: arthur pritchard who wrote (105304)	2/26/1999 12:12:00 PM
From: SecularBull	Read Replies (3) \| Respond to of 176387

ON MARGIN: Arthur, I agree with your point that margin, if used properly, can enhance investor returns. I have found that the game has become much more dicey in the past year, as compared to before that. In a perfect world, we would load the boat (60% equity to 40% margin MAX in my mind) on sharp declines in the market, and then sell out of those positions at or near the top. For longer term holdings that appreciate significantly, margin balances can also be maintained over long periods of time. I'd pay 7% for a chance to participate in a 50 to 250+% return over a year or more. Not to mention that margin interest is generally fully deductible. I think were people tend to get into trouble is having too much of their portfolio tied up into unmarginable options contracts. Wild fluctuations in the market can whipsaw these portfolios, leaving the investor with no option but to sell to cover margin. Also, one other mistake that is often made is that as the market rallies, the debt-equity ratio drops, making the investor feel safer in taking on more margin. BAD IDEA after a run-up. Take on additional margin only after drops; and not well into rallies. Rallies as we all know, end in corrections (especially now-a-days). As my portfolio has grown, I've used options less and less as a short term bet, and more as a way to set my entry point into long term investments. That's not to say that I don't gamble here and there, but the risks have increased over the last year. My margin balance is equal to about one third of my equity position, at current market values. My options account for about 15.5% of assets at current market value, but will tend to appreciate much, much more as the market rallies. I would not be surprised to see the options move up to 25+% with a few days of good market activity. Margin is obviously not for everyone. A good equity base and maintaining safe debt-equity ratios is an absolute must. I'm sure much of this is known to you already, but I wanted to go more indepth for those readers who might not understand as much. Regards, LoD