As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Thursday, 8 August 2019

Why I No Need To Open Margin Account To Improve My ROC???



Straight talk answer on margin account!

Those who got enough won't be easily hoodwinked by snake oils...

Its those who have little or not enough capital and have hole-in-the-heart that are more pliable...

Not enough? Just use share-financing or margin account so you can double or triple your capital! 



9 comments:

  1. CW,

    If we don't have to be 100% invested in the markets to enjoy our lifestyle, we can sleep better at night. That's a sign we are diversified enough ;)

    Imagine those who are 200% or 300% invested just to meet the minimum PC requirement...


    Its like buying a car or condo on borderline basis...

    ReplyDelete
    Replies
    1. If we know what is enough. Do we know? Or how many people seriously know?

      Delete
    2. Majority of people use large leverage for gian png reasons. Hahaha! Not to maintain FIRE.

      People who use margin in pure zero-income retirement are (1) in the tiny minority, and (2) only a very small portion of their overall portfolio & using lower leverage, certainly less than 50% e.g. 1.2X to 1.4X

      That's why most rich people will prefer to employ large leverage in rental properties rather than in paper assets --- collateralised, hence cheaper interest, more favourable financing & much lower chance of margin call.

      Delete
    3. Those who still don't believe in season of the Sun will use margin to generate and maintain cash flow either in retirement or FIRE. Hope that Winter never come.

      Delete
  2. We need more leverage to keep the bull charging!!!

    Please!!! More kool aid!!!!

    LOL!!!

    ReplyDelete
  3. i always think or fancy what if U don't use margin for margined accounts, is it allowed?

    Is it advantage or disadvantaged for U?

    Then who decides the margin call?

    Or there is no margin call referee means kaput for U?

    Just think 3 think 4, & talk male chicken only.

    ReplyDelete
    Replies
    1. If you just trade or invest equities only and had adequate capital to meet your investment income level. Why you need margin account?

      Delete
    2. Sorry,

      U misunderstood me

      i mean products like DLC in SGX which i have not come across in those days where i hock the NLB's seat.

      It so much more interesting then options or futures or what have u?

      Delete
  4. Why not allow, got money ma!

    i so 4KS never buy property until i can buy without leverage. (So much wasted get rich quick chances in exchange enjoyed all the peaceful sleeping soundly nights. And easy going days. No regret. Anyone can choose his own way of living)

    If only i know then i dare to buy with as much leverage as allowed in anything one.

    But O. K. one, no need to force to stand behind Big Mac or KFC counters, is already blessings in retirement days.

    Shalom.

    ReplyDelete

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