Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: SecularBull who wrote (105325)	2/26/1999 12:20:00 PM
From: Ashley Campbell	Respond to of 176387

> 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< LOD - Very good points about the use of margin. I got myself into trouble a few times using margin, until I became more disciplined. Now when I buy stocks on margin for a trading position, I put in a limit sell order at the price I'd be happy at. So when the stock goes up, I sell before I get caught in the euphoria of the rally. Occasionally, if the stock is showing really great momentum, I might move the sell price up a little - but I'm out the minute it looks like its run out of steam. I've had a few positions sold away a little prematurely using this method. But at least I've pocketed a nice profit to use during the next down turn. Just my 2 cents. I'm usually 40 to 50% on margin...a level I'm comfortable with. cheers, -ac

To: SecularBull who wrote (105325)	2/26/1999 1:11:00 PM
From: Sig	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.>>> Well put post, LOD. I hear you talkin. I have been for two years oriented to adding more Dell shares to my collection and have for one year used margin to do that. So it was difficult to picture selling Dell to clear up margin but in hindsight I should have sold a few K shrs near the peak or when it started to back down. Got to have a bit of luck also, to sell before the ( unexpected) 12 point drop off. I am running about 35% margin/over equity even after the recent 30% share drop. Its not critical is but not comfortable and I do have to keep an eye on it . The biggest pain is that it limits my fun stock plays. Thanks for your comments- I like your ideas on handling margin and will just lighten up by selling some shares (sob), someday, sometime. About the time that Drew sells some GTW, I guess. Regards Sig