Margin Lending

[h0max]

Hi all,

Just wondering about your thoughts on Margin Lending.

I am wanting to get a bit more capital to invest with and just wondering about anyone's experience with doing this.

Cheers

 

[natandsal]

I found margin lending very useful in creating more capital to diversify my portfolio. However there is greater risk that one must not loss sleep over. In my own opinion I wouldn't borrow more then about 30-40% of my portfolio value and invest in good solid companies. Also the money borrowed will have interest so obviously you want to outperform that. My current loan is at 9.35% so if I don't do better then that i'm going backwards. Also reseach margin calls and dont get caught by one. Would try and explain but my bed is calling me.

 

[natandsal]

. However there is greater risk that one must not loss sleep over..

What i mean is if borrowing makes you worry don't do it

 

[YELNATS]

My current loan is at 9.35% so if I don't do better then that i'm going backwards.

Personally, I'd never borrow at these rates, you're starting out right behind a massive 8-ball, especially in these volatile markets.

If you have an appetite for risk, stick to risking your own money.

How many thousands got wiped out 2 or 3 years ago in the GFC with big margin loans?