MarginLoan Thread

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>>1729055
Bump

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>>1729063
Come on niggers. You think your so smart. Explain this shit!

>>1729055
What part don't you get?
1) You pay a percentage rate based on how much you borrow, overnight, not intraday.
2) I'm sure there's some difference between institutions, but not much because of competition.
3) I've been using them constantly for years, probably paying around $3K - 5K a year.

>>1729055
Yeah ask your brokerage for a margin account. If they give you one theyll send you a fuck huge package of papers in with all the other prospectus junk they send explaining everything you need to know.

>>1729165
Ok, but I was hoping that biz/ might have some insight thats not in the paperwork.
Do you use margin loans?
Whats the gist of your strategy?
Have you ever gotten burnt and how do you avoid this into the future?

>>1729152
I guess I am uncertain about the potential pitfalls that people who use margin loans might get themselves stuck in.

>I've been using them constantly for years, probably paying around $3K - 5K a year.

Cool. So, have you ever made a net loss in a year? Care to share your experience / strategy? Any lessons on avoiding getting burned?

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>>1729055

>>1729242
>have you ever made a net loss in a year?
Sure. This has to do with overall market performance/strategy though, not having margin.

>Care to share your experience / strategy?
Again, strategy isn't margin specific. Margin is just an extension of your capital. It does, however, make sense to have some experience before you begin using it.

>Any lessons on avoiding getting burned?
The major pitfall is treating it as if its your own, rather than an extension. If prices move against you and you've left no room, you'll get fucked.

>>1729237
You can open proper short positions with a margin for one thing. Puts have their limits. Also use it to leverage sure-bet moon missions or bull runs.

I use leverage and shorts with care and still get burned. Mathmatically speaking its almost always better to short with a put thats like a month out than on margin. For a lot of reasons.

Best use for margin is for leverage but that can fuck you up good too.

I hardly use margin unless its a 100% moon mission on a real stock with institutional or algo trading fueling it. Even then I close my position early with a limit and don't try to ride it too far.

Probably want to read investopedia or something about trading on margin.