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Post by oldman on Nov 14, 2013 6:38:24 GMT 7
Thanks to Zuolun for this link. The video is so good that I have copied this here.
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Post by zuolun on Feb 4, 2014 18:25:08 GMT 7
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Post by zuolun on Mar 6, 2014 16:45:49 GMT 7
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Post by zuolun on Mar 8, 2014 12:12:17 GMT 7
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Post by zuolun on Mar 13, 2014 9:52:18 GMT 7
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Post by zuolun on Mar 14, 2014 11:46:43 GMT 7
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Post by zuolun on Apr 15, 2014 14:52:19 GMT 7
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Post by zuolun on May 30, 2014 8:45:48 GMT 7
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Post by zuolun on Jun 5, 2014 12:18:49 GMT 7
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Post by zuolun on Jun 22, 2014 6:02:17 GMT 7
US Government and Household Debt Record Breaking $60 Trillion — 18 Jun 2014
M'sian household debt for 2013 at RM854 billion — 25 Mar 2014
MAS: Rising household debt in S'pore worrying - 23 Jul 2013
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Post by oldman on Jun 30, 2014 18:05:25 GMT 7
I had a call this afternoon from one of the brokers. She was concerned that I have not been using my margin account for many years now and wanted to know if I like to close it. I told her that I have intentionally kept this account opened as I may use it if the stock market tanks. She was quite surprised by my answer and so I elaborated to her that my strategy for borrowed money is that I will only borrow to buy really cheap stuff, may this be properties or stocks. There is a right time to borrow money and now is certainly not the right time. Now is the time to be in cash and to maintain good credit worthiness. Ideally, one should not have any borrowings of any kind before a crash because it will be much easier to borrow money when you have no borrowings of any kind.  |
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Post by zuolun on Jul 6, 2014 6:40:36 GMT 7
Buying stocks with the highest leverage via CFD at max. financing at 90% may trigger a margin call when price falls below the stop-loss level but the auto-force-selling mechanism prevents further huge losses if there is continual sudden and sharp corrections. I had a call this afternoon from one of the brokers. She was concerned that I have not been using my margin account for many years now and wanted to know if I like to close it. I told her that I have intentionally kept this account opened as I may use it if the stock market tanks. She was quite surprised by my answer and so I elaborated to her that my strategy for borrowed money is that I will only borrow to buy really cheap stuff, may this be properties or stocks. There is a right time to borrow money and now is certainly not the right time. Now is the time to be in cash and to maintain good credit worthiness. Ideally, one should not have any borrowings of any kind before a crash because it will be much easier to borrow money when you have no borrowings of any kind. oldman, Buying stocks with borrowed money via margin account is a double-edged sword; win big, lose also big. ==> 水能载舟，亦能覆舟。Example 1: WilmarIn Aug 2012, my close friend used CFD to long 500 lots Wilmar average @ S$3.30/sh = S$165,000 (max. financing for Wilmar @ 90%). In Feb 2013, he sold all the 500 lots Wilmar average @ S$3.50/sh, made a profit of S$0.20/sh = S$100,000 (excluding commission and other charges). Example 2: CoscoAnother friend loved betting big on Cosco... In Aug 2011, he gambled on a double-bottom reversal and went to long 200 lots Cosco @ S$1.80+ via CFD. Within a couple of days, Cosco collapsed and he was forced to cut loss at > 20% approx. S$80,000 (excluding commission and other charges). This friend used to coach me on TA and he had > 10 years of trading experience in the stock market, then. The W-Shaped on VARD now is similar to the one on Cosco then, it always reminds me of how my friend burned a big hole in his pocket.    VARD — The Elliott Wave Chart PatternBased on the Elliott Wave chart pattern, crucial support @ S$0.78, record low baseline support @ S$0.56; expect VARD to retest the last low @ S$0.76 scored on 22 July 2013 and hit lower low to close the gap between S$0.70 and S$0.675 created on 7 Oct 2011.  |
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Post by oldman on Jul 6, 2014 9:42:50 GMT 7
Zuolun, I fully agree. I seldom use margin but am not against using it when the right opportunity arises at the right time. Now is certainly the wrong time. |
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Post by zuolun on Jul 22, 2014 7:34:42 GMT 7
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Post by zuolun on Jul 26, 2014 11:54:10 GMT 7
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