Not to make you feel bad but if you are wondering how margin works on both sides (short/long) that is a good indication of maybe not using it.
When a few of us worked in the markets back before the margin rules were changed, I saw people with 250k accounts WIPED out by using margin. I might suggest getting completely OFF margin and having your broker journal all shares long into cash versus margin.
The regulation rules for shorts works the inverse of longs..same rules exist but the debit spread decreases as the stock goes against you and when that spread goes past certain margin levels you have to add to keep it above those levels.
Also, some stocks have higher maintenance requirements than others, depending on what the broker or the listing exchange thinks it needs to be, depending on float and beta.
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brooklyn,
Not to make you feel bad but if you are wondering how margin works on both sides (short/long) that is a good indication of maybe not using it.
When a few of us worked in the markets back before the margin rules were changed, I saw people with 250k accounts WIPED out by using margin. I might suggest getting completely OFF margin and having your broker journal all shares long into cash versus margin.
The regulation rules for shorts works the inverse of longs..same rules exist but the debit spread decreases as the stock goes against you and when that spread goes past certain margin levels you have to add to keep it above those levels.
Also, some stocks have higher maintenance requirements than others, depending on what the broker or the listing exchange thinks it needs to be, depending on float and beta.
thanks I am using Ameritrade and I listened and sold 2 positions and got off the margin.. looking for some help going forward not for home runs just some singles to get back some losses..
as for the shorts I was just checking that you do have to fund account when position goes against you.
thanks again i know the maintenance requirements
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thanks I am using Ameritrade and I listened and sold 2 positions and got off the margin.. looking for some help going forward not for home runs just some singles to get back some losses..
as for the shorts I was just checking that you do have to fund account when position goes against you.
The disconnect among everything is the result of serious speculation (currencies/commodities) having to be unwound. And yeah, for sure, until that whole "trade" is closed, gold could keep dropping. This all began, I believe, the day before July 4, when all hell broke loose with ags/steels/coals.
I don't know, I have never been a gold bug, but since I am so bearish (and rightly so) on the future, and the way America has just printed money willy nilly to bail out crap, then "eventually," the real gold bugs will send gold back up the charts, and if my bearishness is right, the move will be parabolic, lightning quick and vicious. I want to be on the train for this ride, and I will risk being "early to the party" for this potential upside.
I am looking at getting long some gold futures, that's all.
Brooklyn-
WSC and Mikey are right, going long margin for several days is like trying to kiss a really pissed off rattlesnake. Don't do it, cause there is no way out once called except selling. I can tell you from personal experience that a margin call will make you throw up on the spot. It's like getting put in jail and being caught red-handed doing the crime. I learned to not f--k with margining over days and days, while your position is eroding. When trading, use stops, and NEVER let a "trade" turn in to an investment. If the "trade" goes against you, get out, move on.
Have a good evening, guys. Enjoy the football game.
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KOAJ-
The disconnect among everything is the result of serious speculation (currencies/commodities) having to be unwound. And yeah, for sure, until that whole "trade" is closed, gold could keep dropping. This all began, I believe, the day before July 4, when all hell broke loose with ags/steels/coals.
I don't know, I have never been a gold bug, but since I am so bearish (and rightly so) on the future, and the way America has just printed money willy nilly to bail out crap, then "eventually," the real gold bugs will send gold back up the charts, and if my bearishness is right, the move will be parabolic, lightning quick and vicious. I want to be on the train for this ride, and I will risk being "early to the party" for this potential upside.
I am looking at getting long some gold futures, that's all.
Brooklyn-
WSC and Mikey are right, going long margin for several days is like trying to kiss a really pissed off rattlesnake. Don't do it, cause there is no way out once called except selling. I can tell you from personal experience that a margin call will make you throw up on the spot. It's like getting put in jail and being caught red-handed doing the crime. I learned to not f--k with margining over days and days, while your position is eroding. When trading, use stops, and NEVER let a "trade" turn in to an investment. If the "trade" goes against you, get out, move on.
Have a good evening, guys. Enjoy the football game.
JUST IN CASE you would be interested in gold shortly (I believe anything below 700 is a good value) I would propose to look at gold shares. GDX fund comes to mind. GLD/GDX ratio is the highest in a decade (I use $GOLD:$XAU for this matter). Majority of gold producers are trading at levels not seen since gold was 500-600.
So I think the upside potential of these stocks (indexes) is much greater than that of gold itself.
Cheers, and thank you for your posts. :)
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Dear Mikey!!!
JUST IN CASE you would be interested in gold shortly (I believe anything below 700 is a good value) I would propose to look at gold shares. GDX fund comes to mind. GLD/GDX ratio is the highest in a decade (I use $GOLD:$XAU for this matter). Majority of gold producers are trading at levels not seen since gold was 500-600.
So I think the upside potential of these stocks (indexes) is much greater than that of gold itself.
i had a question about margin. If they charge you 7 % on margin how do
they figure the amount ?? is it 7% of the margin they loan to begin
with ??
say you had 50k and then got a margin account with an additional 50k. would you pay them 7% apr on that 50k ?? hows their interest accumulated ??
also mikey i seen you giving advice for not using margin, why are you against it ? I was thinking of opening a margin account for more leverage but want to make sure im not getting into something that will hurt me.
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i had a question about margin. If they charge you 7 % on margin how do
they figure the amount ?? is it 7% of the margin they loan to begin
with ??
say you had 50k and then got a margin account with an additional 50k. would you pay them 7% apr on that 50k ?? hows their interest accumulated ??
also mikey i seen you giving advice for not using margin, why are you against it ? I was thinking of opening a margin account for more leverage but want to make sure im not getting into something that will hurt me.
I felt a little bad when I logged on and saw silver and gold up a little, I left a few thousand on the table there.. hate to miss the gold rush when it comes..
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I felt a little bad when I logged on and saw silver and gold up a little, I left a few thousand on the table there.. hate to miss the gold rush when it comes..
Mikey you saw how much i was playing on a position, too much to be involved with 15-20 positions, this was what I was asking last week about money management, how much do you think I should start a position with ?
this is the most important thing to know in any form of gambling
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Mikey you saw how much i was playing on a position, too much to be involved with 15-20 positions, this was what I was asking last week about money management, how much do you think I should start a position with ?
this is the most important thing to know in any form of gambling
JAX .....Keep and eye on the 50 day average for FSLR now at 265 and falling. If you can get a jump up to that average then I would say that is a good entry point for the short you wanted
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JAX .....Keep and eye on the 50 day average for FSLR now at 265 and falling. If you can get a jump up to that average then I would say that is a good entry point for the short you wanted
I use the 50 day average to either buy or short a counter move when I think a trend is in place. The reason I am shorting CSX NSC and UNP is because I think the down trend has started and I am getting good news and a counter move to the 50 day average where it is now
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I use the 50 day average to either buy or short a counter move when I think a trend is in place. The reason I am shorting CSX NSC and UNP is because I think the down trend has started and I am getting good news and a counter move to the 50 day average where it is now
The oversold bounces on stocks in downtrends like DIG I will use the 20 day average to sell a long side trade on the DIG which is in a downtrend the 20 day is at 78.90. That is my sell point DIG it???
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The oversold bounces on stocks in downtrends like DIG I will use the 20 day average to sell a long side trade on the DIG which is in a downtrend the 20 day is at 78.90. That is my sell point DIG it???
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