Help! Beginner with a margin loan out of control!

[upandup]

Hi everyone. This is my first post.

I have been following the market for a few years and decided, after a some research to get involved.

For some stupid reason, I deposited my saved $20k in to a margin loan offset account with anz.

I used that money as security to buy 1500 BHP shares at $37 a few months ago.

This was the only stock I purchased.

As you guys know its now trading around $32 meaning I have lost around 10k in value.

My question is should I:
1. Sell and go to cash
2. Sell and buy other stocks
3. Hold
4. Buy more to lower average purchase price.

I don't need the money and am investing for the long term. I'm still saving around $500 per week.

Any advice would be great...

Thanks

 

[tech/a]

Re: Help! Beginner with a margin loan out of control.

Hi everyone. This is my first post.

I have been following the market for a few years and decided, after a some research to get involved.

For some stupid reason, I deposited my saved $20k in to a margin loan offset account with anz.

I used that money as security to buy 1500 BHP shares at $37 a few months ago.

This was the only stock I purchased.

As you guys know its now trading around $32 meaning I have lost around 10k in value.

My question is should I:
1. Sell and go to cash
2. Sell and buy other stocks
3. Hold
4. Buy more to lower average purchase price.

I don't need the money and am investing for the long term. I'm still saving around $500 per week.

Any advice would be great...

Thanks

The stupid reason was anticipated profit accelerated by leverage.

Weakness in the AUD will help exports.
The chart looks like crap.

So you've received a margin call?

Go learn about risk and how to mitigate it.

 

[So_Cynical]

Re: Help! Beginner with a margin loan out of control.

or

5. don't play with money i cant afford to lose in the first place.





Sorry i couldn't help myself...anyway your asking for specific financial advise and that's a no no.

 

[prawn_86]

Re: Help! Beginner with a margin loan out of control.

Please note that due to AFSL laws members here are not legally allowed to give advice relating to your specific situation. As such i have to close this thread.

If you use the search function and find the BHP threads there should various members throughts on that company