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Re: Margin Lending

I agree with tech/a's explanation.  I rarely trade without margin, however when I first started, I would not exceed 80% of the available credit, now I trade in the buffer zone more times than not (103%).  It is a matter of comfort zone & knowing the rules, I operate with 10 to 15 stocks as ideal, using my maximum risk amounts with each stock.....I sleep at nights.

Marginlending is a great teacher of discipline.  I have never had a margin call with a conventional lender, but I have heaps of times in the past with cfd's, which I don't use anymore.

The nearest I have had to a margin call, & I was in the buffer zone with 3 ML accounts, was the "September 11th 2001" but was able to work my way through it, selling down over a few days, & coming well out on top during October 2001 (still my best month ever)

I think "you do best, what you know best" , whether its installment warrants, or marginlending.  I prefer the latter.....but that is my opinion.

Whichever leveraging you use, you still have to have a consistantly winning strategy, as leveraging magnifies both wins & losses......leveraging does not make you win.