I notice a lot of threads talking about margin loans and credit facilities....
I have a suggestion: don't buy on credit and get a free GSL
Here is the rationale:
You use credit facilities (margin loan, LOC, drawdown on house loan...) to buy large caps which have relatively low volatility.....for the sole purpose of increasing the relative volatility.
However, microcaps already have an equivalently high volatility (equivalent to larger comapny, + margin gain).
However, with a micro cap, you will never go negative - at worst you lose the lot. So it is a guaranteed stop loss in a way. Admittedly, I am talking here of the dangers of an 87 style crash. With margin or LOC, you could possibly loose your shirt. With microcaps and no leverage, you can fight another day.
In addition, there are greater chances of price anomalies in the microcap stock universe...
I just wanted to throw this in for discussion of alternative strategies. Obviously tech trader is an example of the advantages of margin on the majors.