And if so, that is the risk "you" take in trading. No wonder so many people fail in trading. They simply do not understand the risk they are taking. If it gets changed on "my" positions, so be it. It is all part of the game. Microcaps are risky to begin with. Using leverage to trade them is not very smart IMO. That is why I do not trade them. Tell me how many of the big players that make millions trade Microcaps. Easy answer, ZERO.
Who are you to tell me how to invest? I use margin in a very complicated way. Capital structure arbitrage, hedging, etc. I can assure you I have done very well. Just because I'm using leverage doesn't mean I'm an idiot.
Agreed 100 percent. We all know there are many ways to skin a cat trading and to say using margin in these stocks "is not smart" doesn't take into account various strategies one can employ trading smaller cap companies.
Kudos to you. Correct me if I am wrong but am I telling you how to invest, NO. I am simply stating my opinion on this matter. If you can't take that for what it is without getting heated, I'm sorry for you. Based on your response here, sounds like you got affected by this change in margin. Adapt or die. It is all part of the game. Understand the risk you are taking before ever taking a trade. Sorry, it is that simple. The ones that cannot accept it are the ones that don't understand it or simply refuse to accept it.
This isn't a fucking game! It's the way I make my living! And yes, I will adapt. Can you not read? I am changing brokers. But it's amazing to me that some of you just say "deal with it". That's really not the point of this thread. Of course I and others will have to deal with it. Thanks captain obvious.
My original post: 09-19-11 05:16 PM Not a big deal IMO. Small cap stocks are risky. They are protecting themselves. I don't think you will see a max exodus from IB because of that. For all you that are twisting my words saying this and that, I am stating my opinion on the matter. Some of you guys obviously got affected by the margin change. Deal with it, it is that simple. Understand your risk on every trade. This will not be the last time the "rules" will change on you. Bunch of freakin whiners.
I suppose you feel the thread about the 1/4 percent transaction tax thread is a bunch of whiners who just don't know how to deal with change. This is not a minor change. It is very significant if you use IB and cannot be "dealt with" if you trade small cap stocks.
And even if you could "deal with it", it's simply impossible to do in 48 hours for some of us. I own a large portfolio that would take 2-3 weeks to liquidate at the earliest. There is no reason they could not have given us more time to implement this completely arbitrary change. In the end, I'm happy I'm leaving. I've given them 10s of thousands of commissions and finance revenue this year alone. If that's not important to them, so be it. I'll find a prime broker who wants me.