Are most of you cautious in your use of margin?

Discussion in 'Trading' started by jackangel, Oct 7, 2008.

  1. Referring to equities primarily.

    Do you rarely, if ever, make use of your overnight margin, but perhaps go in strong during the day on "no-brainer" moves?

    Or, do some of you accept that risk of using margin to hold larger positions on a regular basis?
     
  2. No-brainer moves?
     
  3. JCVR

    JCVR

    i use very little margin overnight, during the day i'll sometimes be close to all in if i am trading very actively and managing a bunch of positions, but i always make sure to scale back so i have plenty of powder dry for the next morning.
     
  4. Let me show you a video which represents the majority of elitetraders. Do you think these guys are responsible with their margin?

    <object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/GrQEKYZFmgE&hl=en&fs=1"></param><param name="allowFullScreen" value="true"></param><embed src="http://www.youtube.com/v/GrQEKYZFmgE&hl=en&fs=1" type="application/x-shockwave-flash" allowfullscreen="true" width="425" height="344"></embed></object>
     
  5. gnome

    gnome

    aka, "Trades I saw with 20-20 hindsight"
     
  6. Cash only for me. Have not used margin in over 10 years...
     
  7. gnome

    gnome

    Whatsa matter? No 100:1? You chicken, or something?
     
  8. When I started, I was like everyone else, the more leverage the better. Over time my portfolio has grown and then some. I don't have the need for margin anymore...
     
  9. if, for whatever reason, you have strong reason(s) to think your market is going to move in a certain direction in a certain time frame, then you may choose to use margin to go in with a strong position.

    forget "no-brainer", replace it with "strong conviction."