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Re: Margin Lending

Barbarian

This is what I have done,for 3 yrs with techtrader.

My idea (in the future)was to take a % of equity from each property I have and invest it in a portfolio.I was going to trade 3 different methods.

Techtrader,Stevo's Bollinger Band Weekly method and Rossellas dividend stripping.

Now with the advent of CFD's rather than having to take 30-50% out on a line of credit from a property,I only need 10%.

The other thing I wish to point out is you dont have to and shouldnt leverage yourself to the max (In my veiw).

While I may have $200K equity in a Property I will only use a max(In my case) of 30% of that.So when trading CFD's,I'll only be trading $70K from that Property,costing me $7000 to the provider.You'll need to have a line of credit that will allow you to get to the $70k if all falls in a hole.

Margin calls are a great wake up call in my view.I've never been called.

But if your method of trading has you lose enough to be called and that loss is lower than the maximum initial drawdown of the method your trading---then it needs to be halted trading and reveiwed.

And if you dont know these figures---what are you doing trading leveraged instruments???

To me having your capital locked away in equity while comforting is wasteful.

However if your going to release it you really need to be right on top of the numbers.