Anyone close to an Eddy Groves? (previously known as a Margin Call)

[sam76]

All this doom and gloom has put me close to getting a phone call from Mac Bank.

Luckily I have cash kept in reserve for moments like this.

Anyone else hovering near their buffer?

 

[Lucky_Country]

Re: Margin Call - Anyone teetering on the edge?

Been there done that no big deal just put some more cash in or sell some shares.
I think most have reached a limit on the margin knowing volatile times are with us.

 

[sam76]

Re: Margin Call - Anyone teetering on the edge?

Fair call, LJH.

My first venture in the abyss here

Just as a side note, i hit the "yes" button at the beginning and my vote went to "Margin what?"

Anyone else get that?

 

[ithatheekret]

Re: Margin Call - Anyone teetering on the edge?

That would depend upon ones margin trading strategies , in Forex I only use 40 -45% of leveraged funds at one time , the spare sits there for the just in case I want to go heavy on a easy trade . That way I don't get margin calls as it fits to have a hefty reserve to be able to move on when needed .

Stocks , well I only margin on stocks I already own and are risers , before going in I get rid of losers , then the stocks leverage rating is the measuring stick I use and make sure I don't exceed 30% overall on those accounts . I had one margin call once , had an 1pm call when one stock was down 4.8% , I went in and bought more also having to make arrangements for the funds to go through , but by close it was only 2.3% down and it rose 3.6% the next day . I think luck was on my side then , because it was in Dec. 2001 .

 

[Timmy]

Re: Margin Call - Anyone teetering on the edge?

Ahhhhh, so that's what it means to have an edge....

 

[sam76]

Re: Margin Call - Anyone teetering on the edge?

Must be a few more around at the moment.

 

[ithatheekret]

Re: Margin Call - Anyone teetering on the edge?

I got closer than normal , the Swissie fortunately fixed that , now I have ample . Could have done with more slack last night though .

 

[Nyden]

Re: Margin Call - Anyone teetering on the edge?

Gosh, you guys must have some steel down there to be on margin at the moment! It's painful enough for me to be losing my own money, little alone money I don't have! :

My answer was no, but I was tempted to say margin what

 

[korrupt_1]

Re: Margin Call - Anyone teetering on the edge?

I voted yes... i have been margin called atleast 10 times in the last month or so (2 a week on average)...

I'm always putting in just enough... (cos i'd rather have the funds in my savings than in their trust a/c) then BANG, the market goes down again and I need to pump more in... it's been a way dumping ever since... man, dont know how much more i should take... about 70% of my liquid cash is in margin calls and I'm not sure if I should commit more or just call it quit and get out... originally I only wanted to commit about 50% of my spare cash,... but everytime it goes down, Technical indicators says it's gonna bounce.. but nope... she goes down more!!

argh!!!

Leverage products can be wonderful, but it can sting if not careful!! And I've been stung very nicely indeed!!

 

[grace]

Re: Margin Call - Anyone teetering on the edge?

I don't have a margin loan, nor do I want one. I am sitting on enough losses atm. I am not good enough at investing to have one.

 

[tech/a]

Re: Margin Call - Anyone teetering on the edge?

Technical indicators says it's gonna bounce.. but nope... she goes down more!!

Don't use indicators then.
10 Margin Calls in 2 mths.
No offence but you need to stop the rot!

 

[son of baglimit]

Re: Margin Call - Anyone teetering on the edge?

agree grace - dont know enough to use other peoples money too.

fortunately the writing has been on the wall for 12 months, and all positions (except 1) abandoned nicely during 1st half of 07.

oh the pain if i still held them now.....all profits deteriorating.

 

[tronic72]

Re: Margin Call - Anyone teetering on the edge?

I split my capital in half two weeks ago.

1st half is used for trading CFDs and I've lost about 35% of that capital.

2nd Half I've been using to buy shares when I see bargains. No prizes for guessing which half of my capital is 35% down.

Although I think it's prudent to be extremely cautious at the moment, I do think the AU Market has over reacted to the whole sub-prime issue. I haven't heard a single report from a company OTHER THAN CENTRO that says they will be SEVERELY effected by what's happening in the USA. At least nothing that justifies SPs being slashed the way they have. Some examples are MQG, BNB, AFG, TOL & ABS

I also think the fears investors have regarding the US recession are over the top. I've read many articles stating that the recession may already be active and that the recession, if and when it happens will be moderate and short (approximately 6-12 months).

We are sitting close to the August Lows. Does anyone remember what sparked the August decline?

 

[Bushman]

Re: Margin Call - Anyone teetering on the edge?

I only use my own cash. Was thinking of a margin loan early last year but the August correction showed me the error of my ways.

Leverage is great in a bull market, poor in uncertain times. Believe me in this; I work for Centro!!

Still 80% in gold, natural gas and iron ore. Holding up ok at the moment as I went for companies in transition or with good exploration potential. Lack of depth and news in this market will kill you. Premiums are being whittled away.

Stay solvent and you will trade again. Markets recover (except for the isntance of the Japanese market crash, I know).

Good luck. How many days red - its been 8 in a row? I believe a few more investment banks reports overnight. Why oh why did they not write these loans off in the last quarter.

 

[stockwhizben]

Re: Margin Call - Anyone teetering on the edge?

yea another margin call for me today. got till friday to clear it up. yep margin at the moment is eroding 2 years of profits but then i think and say if i had used my own savings there is absolutely no way i would have got this far anyway so margin has been good to me. Hence my reluctance to let it go. started with zip, up 150k clear in 2 years, now down 80k in 2 months. all the blue chips doing this. I learnt a lesson, when im older no way am i going to have everything in shares - will be overweight property, some shares, some term deposits.

had an amusing chat with the nab manager today when she called. said that i was about the only 1 to answer her calls today. she said people tend to not answer their phones and try and avoid margin calls. also the nab has changed the criteria for how much equity % you need to borrow $x coz upper mgt says the investing landscape has changed. anyway thought it was funny people dont answer their phone

 

[dj_420]

Re: Margin Call - Anyone teetering on the edge?

Wow, I thought most people liquidated around Oct/Nov, I sold almost everything around Oct and have only entered in for short term trades and topping up two long term stocks.

Still got around 80% cash waiting to re-enter market.

 

[stockwhizben]

Re: Margin Call - Anyone teetering on the edge?

awsum timing DJ. i missed this one. i beat the august downturn though. so 1 outta 2 aint bad. i kept thinking santa claus was coming december so hung around. doh

 

[Struzball]

Re: Margin Call - Anyone teetering on the edge?

I voted no, but if the market goes down a further 25% I might change my vote!

I'm sure this won't happen.... but who knows.

 

[Kauri]

Re: Margin Call - Anyone teetering on the edge?

My bookies got the heavies out looking for me...
Giidyup
........Kauri

 

[ithatheekret]

Re: Margin Call - Anyone teetering on the edge?

Following you about sounds dangerous

apart from the sun the suits would have to dodge roos and snakes