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If you got 10k for investment nw, how are u gg....
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cheongwee
Elite |
13-Apr-2009 17:57
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Come to think of it 10k is little, but to me way back 1980..it was alot...and i lost some 20k over in 1980 and again in OTC Malaysian stock in 1997. some 60k..it is painful..u cannot eat or sleep properly...after Dr M declared all my OTC stock illegal...i sold at hugh losses. I am not laughing at other, but really, in reality, i have yet to met a guy who got rich by speculating in stock...all my friend are rich because they own businesses...and honestly i make more from my hardware business than stock..over the years... This stock investement to me is somehow like drinking or smoking to some ppl...or buying toto or 4D..to other ppl.. I suggest u refrain from using margin..i think u only buy blues..and i sincerely regret that i call u to trade on margin...because u may lose big also...and i will be the cause of your losses.. Just buy blues , i believe there will be a lower low, but u can cost ave also...my recommendation...Semdmarine..Noble, Olam, SPH... No property for now, i believe properties will go lower next yrs.....good luck. |
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Laulan
Master |
13-Apr-2009 10:54
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Agree. Cut your losses quickly without a second thought because losses should not be allowed to linger on. I learnt my lessons already.
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jeremyow
Senior |
13-Apr-2009 10:31
Yells: "Passionate business investor" |
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It ultimately depends on the movement of stock price. If one is longing a stock and the stock price goes up, one earns potentially more on margin. If one is shorting a stock and the short price goes down, one earns potentially more on margin too. However, when the price moves opposite direction to one's intitial prediction and persist in that wrong direction for a period of time, then the effects of margin can also work against the investor. Therefore, the investor still has to exercise caution to know when to cut loss. Being right most of the time is good. However, if one drastic wrong happens, it can erase the original gains of an investor when playing on margin. It still pays to be very careful and rational whether one is on margin or not when investing in stocks. | ||||
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Livermore
Master |
12-Apr-2009 12:09
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Let's say you have $30k in margin and you only borrowed $10k and bought Keppeland at $1.20. So the price dropped to $1. Nothing happens to you. Now it is about $1.62 so you have made about $4k and interest at $54 a month. It took Keppeland just less than a month to move from $1 to now about $1.62.
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Livermore
Master |
12-Apr-2009 09:31
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General rule of thumb for me if you just start off with margin with no backup profit, don't go up to more than 2/3 leverage. Let's say you have $30k, don't buy up to more than $60k. The remaining $30k acts as your buffer. You can even be more conservative and just go up to $40k. So you borrow only $10k (translates to only $650 interest in 1 year; $54 a month at 6.5% interest p a).
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jeremyow
Senior |
12-Apr-2009 00:15
Yells: "Passionate business investor" |
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Totally agree with cheongwee.......Margin is a double-edged sword......It can result in a potentially higher returns for a small amount of capital, but it can also potentially result in large losses........The importance is strict cutting loss discipline when things go wrong so as to prevent losses from snowballing.......I believe excellent traders are people who do not bring in emotions to trading, but do things technically and rationally, following trading indicators. They are not greedy and impatient, but they thrive on rational and good trading principles. Margins may serve these excellent traders well as they may most likely also be rational to the amount of margin to take on........... "When the right tool gets into the hands of an excellent master, it can make wonderful products. However, when the right tool gets into the hands of a lousy master, it creates disasters...." |
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cheongwee
Elite |
11-Apr-2009 23:36
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Actually, margin is good, if u use properly......then how are u going to make more with just 10K??? The real problem is not margin or whatever...but rather that one does not have a cut loss rule....and held on till losses become heavy to recover. CUT YOUR LOSSES EARLY, BE MECHANICAL NOT EMOTIONAL...this is what i have learned. |
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bola_no1
Senior |
11-Apr-2009 22:55
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Ya we can discussed here |
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jackjames
Elite |
11-Apr-2009 22:21
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you can show it here too.
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Livermore
Master |
11-Apr-2009 21:23
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Some may have a misguided view about margin. I even pressed calculator or show step by step through concrete calculation to my friends it is not risky if used properly but unfortunately some still don't believe.
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iPunter
Supreme |
11-Apr-2009 20:59
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Playing margin is not itself an evil... because it is in reality a godsend and good facility. The real evil is betting big, margined or not...
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cheongwee
Elite |
11-Apr-2009 13:32
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I half agree...but if you dont make use of this rally..to make big by using margin then you got to wait a long time for this type of rally to come again... I am assuming the 10k is the $ u can afford to lsoe... But if you follow cut lose if necessary, i dont see u losing in this rally...personnally up some 35 to 40%.. I am also asumming u are a seasoned guy in the market.. But if you are new and like to go long...then do it in late 2010...i believe there is a chance for you to buy cheaper then...becos if u buy nw u are likely to lose your $ as u let emotion and inexperience takeover...
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bola_no1
Senior |
11-Apr-2009 11:34
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Life's a gamble bro | ||||
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jackjames
Elite |
11-Apr-2009 10:37
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2 lots of bukit sembawang, and 5 lots of ParkwaylifeReits. | ||||
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wongmx6
Veteran |
10-Apr-2009 21:28
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Playing Margin is not much different from gambling 3 dices at Genting. "Big or Small". |
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iPunter
Supreme |
10-Apr-2009 21:25
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But stocks can move either way... when will people ever learn?... 
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Laulan
Master |
10-Apr-2009 19:13
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I will buy 2 lots OCBC at 5.40 to 5.50 without intending to pick up, but sell at T+2. or around 6.00 per share. Don't wait for the last day to contra. Play a few rounds and can see gains 15 to 20 percent. | ||||
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cheongwee
Elite |
10-Apr-2009 15:19
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JMO...make use of this fool rally to profit,use margin,....forget abt long..i still believe we see a new lower low...that is the time to buy big time and long....do that in late 2010 or mid 2011. | ||||
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Livermore
Master |
10-Apr-2009 11:57
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Just 30k alone can make a lot with margin. With 10k, not impossible to make a lot. Don't diversify and might just focus on 1 stock with 10k | ||||
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bola_no1
Senior |
10-Apr-2009 11:56
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10k.... many options.. u need decide u want long or volatile ones.. | ||||
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