Bye-bye reg T

quote from Maverick74
Anyway, just join a JBO if it's really that big of an issue.

Reg T still a big issue for most. Those JBO can get expensive with their high commish rates.
 
Quote from yip1997:

Too bad that you can't join JBO with your IRA money.

Really shouldn't be actively trading in IRA account, IMO. However, it's very smart to take control of your retirement funds, invest well, etc. vs. using a broker or something.

Good advice from Maverick (whoda thought, LOL) about not maxing out IMO.

FWIW,

Don
 
quote from Maverick74
Silly question. But why are you guys maxing out your leverage anyway?

The obvious answer is to increase rate of return. By:

1. Holding more shares in a potential profitable position.

2. Being able to diversify into other positions.

Nothing some of us traders hate more is having to sell and buy into another "hopefully" better profitable position. The generating of two commissions in order to complete these trades does upset some traders.

So, the additional capital being borrowed by trader will prevent the two commission trade problem and some traders are inclined to chance/risk the margin call.
 
Quote from timcar:

The obvious answer is to increase rate of return. By:

1. Holding more shares in a potential profitable position.

2. Being able to diversify into other positions.

Nothing some of us traders hate more is having to sell and buy into another "hopefully" better profitable position. The generating of two commissions in order to complete these trades does upset some traders.

So, the additional capital being borrowed by trader will prevent the two commission trade problem and some traders are inclined to chance/risk the margin call.

This makes no sense. I asked about leverage, and you responded with more leverage. LOL. Let me say it again, you should not be leveraging your account so you are 100% maxed out or close to it. Why would you let one move blow you out?

No such thing as diversification in a panic. During panics there is 100% correlation. Everything goes down at once, and fast.

And commisions have nothing to do with leverage. Just take my advice and simmer down on the leverage.
 
Back
Top