Margin loans in for rough ride

[wayneL]

Fair enough. Didn't Buffett use OPM? Just a thought.

Great whopping wads of it, he did!!

 

[wayneL]

There was a poster called Fastoy who used to be around in the days of Stockcentral. As far as I know he still posts on TNO.

He's been using margin lending for 20 or so years AT FULL LVR AND OFTEN INTO THE BUFFER, and never had a margin call.

His style is active investor/trend trader. It is much like options. The misconception is of great risk, the reality is different, with the caveat that the trader must have enough knowledge.

Cheers

 

[professor_frink]

There was a poster called Fastoy who used to be around in the days of Stockcentral. As far as I know he still posts on TNO.

He's been using margin lending for 20 or so years AT FULL LVR AND OFTEN INTO THE BUFFER, and never had a margin call.

His style is active investor/trend trader. It is much like options. The misconception is of great risk, the reality is different, with the caveat that the trader must have enough knowledge.

Cheers

That's pretty impressive!

What's TNO?

 

[rozella]

Yes, I remember fastoy from stockcentral & TNO. I had a lot of respect for his style & some of the knowledge I use today came from his influence.

Trading fulltime is much the same as running a business & those that have been in business can appreciate that you should always expect the unexpected. I used to have 7 major bulky retail factory outlets & 2 manufacturing factories spread between VIC, NSW & QLD, & there was never a dull moment....always plenty of dramas. I did this for 28 years.

What is my point of saying this? To demonstrate that I could never have done this without "other peoples money" Over this period I used private borrowings plus bank overdrafts etc.

Financing to purchase stocks to me is more sensible than borrowing to run a business as I can at least see a track record of the companies I want to buy especially with the technology that is available today & if I am wrong I can be out for a minimum fee.

I have only been using marginlending for about 8 years, however, we have had some topsy-turvey events in that period & I am almost always in the buffer zone & have never had a margin call. I feel cheated when I can't use margin.

I agree that some people should never borrow to buy shares & the same people would probably not survive in the business world either.

For me marginlending is a great tool & is part of everyday business. By the way with trading I have a stress free life......margin loans & all.

 

[Realist]

Look I am not totally against Margin lending per se, I have never done it, but will do it in the future with the utmost of care because I understand the advantages. I believe it is fraught with danger, and my first aim when investing is to not lose, and with margin lending that first aim becomes alot more difficult.

Now is not the time for me to do it IMHO.

From what I can ascertain, now is the time to reduce shares and property. Having some money in the bank earning interest is possibly the wisest thing to do.

 

[tech/a]

Other than the few who are born with a silver spoon--IE inherit wealth.

Every seriously wealthy investor/businessman has learnt how to successfully use OPM. It is not something to be afraid of more its is a business tool.

People buy their homes with OPM and have done so and will do so in the forseeadle future.

Few use OPM either in business or investment to the same extent.
Those that do and know how to tap the enormous growth potential OPM can give---soon reap the rewards.

Sure there are risks.

But the greatest risk of all is not taking a calculated risk in the first place..

If you had a business plan be it trading/business/coin collecting/art or whatever and it returned 20%+ year in year out on your investment and you could borrow at 8% why the hell wouldnt you use OPM to duplicate it?


Realist now is not the time to bury ones head in the sand.
Sure cut back on gearing but in times which are less than stellar there will always be out performers in both R/E and Trading.

These are the gems to find and sure gear them to maximise the returns.
Be more selective.
Weed out the underperformers.
Ease into new positions.
Gear into bullishness.

There are many ways of taking advantage of times most FEAR.
This is no time to be cavalier.

Oh If anyone likes a Scotch go buy a bottle of Glenfidich malt liqueur its in a Blue bottle and Ive just been tasting in Edinburgh,the finest smoothest scotch Ive tasted in my 52 years.

Yeh I know the Scotch is very ordinary but try this!!!!!

 

[Bobby]

Other than the few who are born with a silver spoon--IE inherit wealth.

Every seriously wealthy investor/businessman has learnt how to successfully use OPM. It is not something to be afraid of more its is a business tool.

People buy their homes with OPM and have done so and will do so in the forseeadle future.

Few use OPM either in business or investment to the same extent.
Those that do and know how to tap the enormous growth potential OPM can give---soon reap the rewards.

Sure there are risks.

But the greatest risk of all is not taking a calculated risk in the first place..

If you had a business plan be it trading/business/coin collecting/art or whatever and it returned 20%+ year in year out on your investment and you could borrow at 8% why the hell wouldnt you use OPM to duplicate it?

Nice to see you back Tech, OPM (other peoples money) yes what a way to go!

Bob.

 

[tech/a]

Hi Bob Not back in Aust still in UK.

Getting sunburnt!!

 

[money tree]

...you know my thoughts on trading, I don't believe there is much more for me to learn about it

Im puzzled why you keep sticking your nose into discussions in which you know less than nothing, yet you pretend you are an expert and criticise the views of others who do actually know what they are talking about.



why is every 2nd post on this forum made by someone who thinks their uneducated opinion should be drummed into everyone?