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MilgaussMan1 · 17 April 2013, 12:48 AM

scary reading the fine print?

crew · 17 April 2013, 01:34 AM

Quote:

Originally Posted by MilgaussMan1

scary reading the fine print?

You're smart to be concerned.
A margin account, IMO, is only for the savviest of investors. That's certainly not me.

77T · 17 April 2013, 01:56 AM

If you must read the fine print, then it is not for you...

Kind of like, "If you have to ask the price, you can't afford it."

Leverage offers advantages, but you must be prepared to lose 3x to 10x of your base capital to play the game - and, by the way, the game is stacked in favor of the pro's who can front-run the shorts and longs...

Ed Rooney · 17 April 2013, 10:32 AM

The system is designed to fleece the retail investors.

joe100 · 17 April 2013, 10:42 AM

My broker offered me a margin account...no thanks

WhatTheDeuce · 17 April 2013, 11:25 AM

I actually have a margin account but I don't really utilize its capabilities. I guess it's good to have the capability if I ever need it.

paverman · 17 April 2013, 02:26 PM

Quote:

Originally Posted by WhatTheDeuce

I actually have a margin account but I don't really utilize its capabilities. I guess it's good to have the capability if I ever need it.

What he said.

malarky_hk · 17 April 2013, 02:46 PM

With current interest rates being so low, it's like free money. Why not use it!

stockae92 · 18 April 2013, 05:35 AM

I am not really the gambling type. Passed.

Jocke · 18 April 2013, 05:48 AM

I have a bargain account, did that count?

Jrsumner · 18 April 2013, 05:49 AM

I used margin last year during the run up but jump out of it since the market is showing some topping action. Be careful using margin now.

Good Luck!

Boothroyd · 18 April 2013, 08:32 AM

It's one thing to have a margin account, it's another to be leveraged to the hilt.

Buy on margin only what one can comfortably afford to lose, in the amount that one has the liquid assets to cover unplanned (and inevitable, it seems) margin calls.

mcorliss · 18 April 2013, 08:45 AM

Quote:

Originally Posted by Ed Rooney

The system is designed to fleece the retail investors.

Actually, that is not true at all. You're sounding a little like Elizabeth Warren and the rest of the Occupy crowd. Margin a very helpful tool at a very reasonable rate, but it's not for everyone.

If you are an experienced investor, then it can be your friend, if you're not, stick to a cash account and mutual funds.

mcorliss · 18 April 2013, 08:55 AM

Quote:

Originally Posted by 77T

If you must read the fine print, then it is not for you...

Kind of like, "If you have to ask the price, you can't afford it."

Leverage offers advantages, but you must be prepared to lose 3x to 10x of your base capital to play the game - and, by the way, the game is stacked in favor of the pro's who can front-run the shorts and longs...

It is virtually impossible to lose 3x-10x your base capital, unless you short a stock at like $10 and it gaps open at like $50 the next morning. If it were same day, you would have a margin call much earlier. There are safeguards in place to avoid 99.99999% of those types of circumstances. Just sayin'

F&Iguy · 19 April 2013, 01:25 PM

Not for me! Just say no

Ed Rooney · 20 April 2013, 11:46 PM

Quote:

Originally Posted by mcorliss

Actually, that is not true at all. You're sounding a little like Elizabeth Warren and the rest of the Occupy crowd. Margin a very helpful tool at a very reasonable rate, but it's not for everyone.

If you are an experienced investor, then it can be your friend, if you're not, stick to a cash account and mutual funds.

No, certainly not one of them. I took Warren Buffet's advice and was out there buying when there was blood in the streets in 2009, but it sure seems like the average shmo on etrade has no chance of getting ahead unless he gets lucky.

As for a margin account, I think only the most experienced, savvy investors should play around there.

landroverking · 23 April 2013, 12:26 PM

Not in the last ten years.

17 April 2013, 12:48 AM	#1
MilgaussMan1 Member Join Date: Nov 2012 Location: Signapore Posts: 196	Anyone on a margin account??? scary reading the fine print?

17 April 2013, 01:56 AM	#3
77T 2024 SubLV41 Pledge Member Join Date: Dec 2010 Real Name: PaulG Location: Georgia Posts: 42,024	If you must read the fine print, then it is not for you... Kind of like, "If you have to ask the price, you can't afford it." Leverage offers advantages, but you must be prepared to lose 3x to 10x of your base capital to play the game - and, by the way, the game is stacked in favor of the pro's who can front-run the shorts and longs... __________________ Does anyone really know what time it is?

17 April 2013, 10:42 AM	#5
joe100 2024 SubLV41 Pledge Member Join Date: Nov 2007 Real Name: Joe Location: New Mexico Watch: Explorer Posts: 12,840	My broker offered me a margin account...no thanks __________________ It's Espresso, not Expresso. Coffee is not a train in Italy. -TRF Member 6982-

17 April 2013, 11:25 AM	#6
WhatTheDeuce "TRF" Member Join Date: Nov 2011 Real Name: Kyung Location: Anywhere? Watch: cha want... Posts: 4,488	I actually have a margin account but I don't really utilize its capabilities. I guess it's good to have the capability if I ever need it. __________________ Instagram: @whatthedeuce_

18 April 2013, 05:35 AM	#9
stockae92 2024 Pledge Member Join Date: Oct 2009 Location: Socal Posts: 4,964	I am not really the gambling type. Passed. __________________ 135 ├┼┼╕ 246 R

17 April 2013, 10:32 AM	#4
Ed Rooney "TRF" Member Join Date: Aug 2007 Location: Annapolis, MD Watch: Sea-Dweller 16600 Posts: 5,081	The system is designed to fleece the retail investors.

17 April 2013, 02:46 PM	#8
malarky_hk "TRF" Member Join Date: Jun 2012 Location: ... Watch: Rolex Posts: 4,466	With current interest rates being so low, it's like free money. Why not use it!

18 April 2013, 05:48 AM	#10
Jocke 2024 SubLV41 Pledge Member Join Date: Apr 2006 Real Name: Jocke Location: Sweden Watch: A dozen of Rolex's Posts: 22,541	I have a bargain account, did that count? __________________ This message is written in perfect swenglish. What is best a custom Rolex or a Rolex that is stuck in custom? Buy a professional camera and you´re a professional photographer, buy a flute and you own a flute.

18 April 2013, 05:49 AM	#11
Jrsumner "TRF" Member Join Date: Mar 2013 Real Name: Jesse Location: Tulsa Watch: GMT-IIc Posts: 12	I used margin last year during the run up but jump out of it since the market is showing some topping action. Be careful using margin now. Good Luck!

18 April 2013, 08:32 AM	#12
Boothroyd 2024 SubLV41 Pledge Member Join Date: May 2011 Real Name: Daniel Location: Minneapolis, MN Watch: Wilsdorf(s) Posts: 10,259	It's one thing to have a margin account, it's another to be leveraged to the hilt. Buy on margin only what one can comfortably afford to lose, in the amount that one has the liquid assets to cover unplanned (and inevitable, it seems) margin calls. __________________ Explorer 214270 MK I/Datejust II Black 116300/Tudor Heritage Black Bay Black 79220N

19 April 2013, 01:25 PM	#15
F&Iguy "TRF" Member Join Date: Sep 2011 Location: WA state Watch: EXP 39mm Posts: 278	Not for me! Just say no

23 April 2013, 12:26 PM	#17
landroverking "TRF" Member Join Date: Dec 2008 Real Name: Jay Location: TEXAS Watch: Daytona Posts: 7,648	Not in the last ten years.

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