Forum Archive Index - March 2004

["Gavin Treadgold" <gav@rediguana.co.nz>]

Yeah, I've got to agree too. I had a very controlled (read very small %
leveraged) play with margin lending in the during the tech boom to see how
it worked. Didn't lose, but didn't make many gains either. I don't really
think the speculative reward is worth the downside risk of margin lending
for two reasons: -

 1. it increases the amount you can potentially lose
 2. it decreases your reward to cover the margin

What that means is that generally it will reduce the return on your
remaining investments that are not leveaged. Of course this is offset by
greater volume of shares held.

Cheers Gav

> I agree Woody.
> > I am sorry to butt in here But! I gotta say I am dead against
> > borrowing to buy shares.

>       Hello everybody,
>
>       I have been reading all the topics on this forum and I
> must say it is quite informative.
>       What I am trying to find out is, if anybody knows much
> about taking a loan to buy shares, through the bank or any
> other source. And what process does it usually involve.
>       This will be  much appreciated.
>
>       Cheers
>
>



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