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

[2020hindsight]

Re: Margin Call - Anyone teetering on the edge?

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

How I envy you dj lol
I went back in around Xmas - down about 20-25% since then (eg BHP)

PS I've always thought that "buy on bad news , sell on good"
was somehow around the wrong sequence lol

 

[Kimosabi]

Re: Margin Call - Anyone teetering on the edge?

I got out of everything in the middle of last year and bought gold

 

[grace]

Re: Margin Call - Anyone teetering on the edge?

How I envy you dj lol
I went back in around Xmas - down about 20-25% since then (eg BHP)

PS I've always thought that "buy on bad news , sell on good"
was somehow around the wrong sequence lol

I don't feel so bad now. I missed both corrections. Predicted the mid-year one, but was unavailable to trade at the time. Sounds a good excuse, but that is the truth. Was waiting for Santa too (my broker said he would come.....I said I can see another correction, he said......unlikely.....damn broker). Don't mean to offend brokers.......noone can predict the future.

 

[2020hindsight]

Re: Margin Call - Anyone teetering on the edge?

I don't feel so bad now. I missed both corrections. Predicted the mid-year one, but was unavailable to trade at the time. Sounds a good excuse, but that is the truth. Was waiting for Santa too (my broker said he would come.....I said I can see another correction, he said......unlikely.....damn broker). Don't mean to offend brokers.......noone can predict the future.

grace
and don't you love the way they all know that the "correction we had to have" was imminent - but tell you the day after it happens lol.

By the time they all sing with one voice it's too late .

PS you have to laugh or you'd cry .

 

[tech/a]

Re: Margin Call - Anyone teetering on the edge?

Some one mention BHP?
Some technical stuff.

 

[Buster]

Re: Margin Call - Anyone teetering on the edge?

Not yet..

I'm only around the 40% mark atm so have some way to go before the 'dreaded' call.. the market would need a deadset implosion for that to happen but I have a reasonable cash reserve just in case..

I'm wondereing how much of this 'correction' may be due to some getting caught out and dumping portfolio's.

Perhaps I'm a bit of a mug, but I picked up a couple of stocks today.. Nobody ever accused me of being smart!! I'm looking at building a 'solid' long term portfolio for 'dividend income' to live off in retirement.. hopefully that will occur in a couple of years, really don't want to work til I'm 65.. (another 25 years..) Retch..

Regards,

Buster

 

[vida]

Re: Margin Call - Anyone teetering on the edge?

hmm if most people had liquidated i.e. sold off shareholdings, the market would have crashed in October - what do you mean ? You can't mean that.

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.

 

[numbercruncher]

Re: Margin Call - Anyone teetering on the edge?

Reserve Bank research shows the number of margin calls on highly leverage investors during the September quarter (the most recent for which figures are available) had increased fourfold.

"This really opens up margin calls. When you see a huge sell-off in equities, people have to raise capital and they are selling whatever they can get their hands on," Ms Lee said.

"Gold is being sold down to cover equities.

"The selldowns have been across the board, but half of our market is commodities-based and metal prices have been weaker."

http://www.theaustralian.news.com.au/story/0,25197,23073892-5005200,00.html

 

[Judd]

Re: Margin Call - Anyone teetering on the edge?

A number of people will be receiving margin calls today and possibly over the next few days. Some will, unfortunately, go broke or at a minimum their personal finances will be absolutely hammered. However, it can also emotionally hurt very badly. Having been the situation once, may I suggest that it could help if professional support is sought but at the very least involve your family.

As to the finances, well, over time they can be repaired but heck as long as you can keep a roof over your head, place food on the table, pay day to day bills, your in front. So just aim for that if you can.

 

[numbercruncher]

Re: Margin Call - Anyone teetering on the edge?

yup self feeding forced selling to meet the dreaded loan requirements.

All I hope is people dont start throwing good money after bad money

 

[weird]

Re: Margin Call - Anyone teetering on the edge?

The words of Jesse Livermore -

"When a margin call reaches you, close your account. Never meet a margin call. You are on the wrong side of a market. Why send good money after bad? Keep that good money for another day."

 

[agro]

Re: Margin Call - Anyone teetering on the edge?

yes

i think the reason the market is going down more sharply is because people need to sell up shares in order to get out of MC..

look at BHP going down,, all the smaller ones need to be sold off to stay safe

 

[laurie]

Re: Margin Call - Anyone teetering on the edge?

Just think of the CGT the feds are getting out of peoples losses

cheers laurie

 

[Gundini]

Re: Margin Call - Anyone teetering on the edge?

yes

i think the reason the market is going down more sharply is because people need to sell up shares in order to get out of MC..

look at BHP going down,, all the smaller ones need to be sold off to stay safe

Which gets back to the reason we are in such a finacial mess Globally:

Access to easy CREDIT!

What a wicked web we weave...

 

[Buster]

Re: Margin Call - Anyone teetering on the edge?

Hey ASF'ers

SMH article, mostly fluff, but thought this pertinent..

On Tuesday alone online the brokerage and margin lender CommSec made more than 2100 margin calls, up from a normal day of 30 calls, relating to loans worth $40 million.

http://business.smh.com.au/caught-in-the-crash/20080125-1o7b.html

Ouch..

Buster

 

[Awesomandy]

Re: Margin Call - Anyone teetering on the edge?

Ouch..

And now stocks have gone back up too. Well, at least the good news is that those who didn't leave much of a margin/buffer in their loans have been flushed out, hopefully teaching them a lesson in this type of loans. And to those who are on the edge of a margin call, it's should be a wake up call to them, that leverage should be used very carefully, perhaps even with a touch of conservatism.

 

[laurie]

Re: Margin Call - Anyone teetering on the edge?

Well one would like to think a long term customer would get some slack from the likes of CommSec but no business is business,which is fair enough, but surely there must be a buffer - % to allow for volatility,anyhow I couldn't log in to see my margin summary nor contact them by phone they were in melt down, BUT I'm sure they would find a way to contact me the other factor not mentioned a few companies fell off the approved LVR accepted shares for margin lending and that worries me if you have them as security

cheers laurie

 

[Buster]

Re: Margin Call - Anyone teetering on the edge?

G'Day Laurie,

the other factor not mentioned a few companies fell off the approved LVR accepted shares for margin lending and that worries me if you have them as security

Now that raises some interesting questions, like 'What do they do with your holdings?' for one.. Do they liquidate them immediately?

Certainly and old trick for new players.. I also though the reneging on the 'buffer' was a little ordinary.. I'd tip these points are worthy of being transcribed into the 'lessons learnt in a falling market' thread..

Regards,

Buster

 

[Sean K]

Re: Anyone close to an Eddy Groves?

I thought I'd take the liberty to alter this thread slightly, and coin a new phrase to replace the dreaded 'Margin Call'.

Henceforth, a Margin Call shall be termed an Eddy Groves...

You heard it here first!

 

[sam76]

Re: Anyone close to an Eddy Groves?

Who's Eddy Groves?

(I like my old title better, makes it easier when researching threads)