do you use margin

[noob_trad3r]

Do you trade and borrow on margin? I don't like to use margin (my account is a margin account though)

The whole borrowing thing sounds too risky.

 

[number22]

if you are trader, you gotta to use leverage. otherwise, you are just investor.

 

[wartrace]

I guess I am the only "No" vote so far. I only trade options and that gives me "leverage" without debt. I am not comfortable with debt of any kind, even for investment.

 

[TraderZones]

whether or not to use leverage has an awful lot to do with an instrument's beta/volatility as well as whether you trade one instrument/diversigy, your trading time frame (minutes? hours? days? weeks?), and should also depend on the historical drawdowns your system takes (with a lot of fudge factor thrown in).

 

[nazzdack]

Quote from noob_trad3r:
The whole borrowing thing sounds too risky.

1) 7-1.
2) Letting small losses turn into large losses is risky.
3) Don't get too hung up on paying margin interest.