|
PureBytes Links
Trading Reference Links
|
If you have 2000 eggs or if you have 25,000 eggs and you
put them in one basket, you had better dam well
watch the basket. Howard, since you are still around and
able to trade I must assume you were able to lose
the $45,000 without losing any sleep. Nobody should
play the market with money they cannot afford to
lose. If they do, they will surely lose because their
emotions will defeat them. Ira's comment is why margins
are going up. I have a friend who is on disability. He
scrapped together $2000 to open a margin account with
money he can not afford to lose. The minimum margin has
been $2000 for a long time, this is way overdue.
A fool and his money is soon parted. Unfortunately this
bull market has made people think they can get rich without
working.
Norman E.
Howard Hopkins wrote:
>
> RT's,
>
> In 1987, I 'thought' I was a 23 year old "stock market wizard" (with a small
> inheritance from my mommy). Unlike today's CNBC watcher daytraders, I
> actually had to take time to read about hot stocks in Barron's, Fortune, and
> Forbes! The old saying, "Don't confuse brains with a bull market" orginated
> from from my broker on Black Monday when my $45,000 account went $5,000
> debit on that fateful day back in the fall of '87.
>
> Speaking from experience, I know that it wouldn't have mattered what the
> minimum margin account size was back then. I would have been fully
> margined. If it was $2k I would have had $4k in stock, if it was $25k I
> would have had $50k. If the margin requirement is 50% for everybody I don't
> really see how a $2,000 trader going debit is any worse than a $25,000
> trader going debit (unless of course, your assuming the $25,000 hasn't sunk
> all his eggs in that one basket. Which is probably a pretty naive
> assumption.)
>
> And finally, losing everything back in 87 was the best thing that every
> happened to me. I learned a tremendous amount about myself and what's
> important, my friends, risk management, and trading. Maybe a Black Monday
> is just what a lot of today's CNBC e-traders need in thier lives.
>
> Just some thoughts,
> Howard
>
> >From: Levent Erbora <erbora@xxxxxxxxxxxxx>
> >Reply-To: erbora@xxxxxxxxxxxxx
> >To: <realtraders@xxxxxxxxxxxxxxx>
> >Subject: [RT] SEC New Margin Rule Proposal
> >Date: Tue, 1 Feb 2000 02:24:01 -0500
> >
> >
> >As you may have heard already, NYSE and NASD are proposing to raise the
> >minimum equity requirements to trade equities on margin from the current
> >$2K to $25K for "pattern daytraders" - whatever that means.
> >I found out today that NYSE already filed this proposal with the SEC around
> >Jan 13 - Jan 14,
> >and the public comment period already started and is about to end on Feb.
> >3!
> >Funny how quietly this was done without any announcements or news
> >releases!!!
> >If you are as infuriated as I am about this totally ridiculous and stupid
> >proposal and will be adversely affected as I am sure most of us would be,
> >please consider sending your comments to SEC before the Feb. 3 deadline.
> >All the info, background and procedure is available at
> >
> >http://www.mtrader.com/secupdate.htm
> >
> >Best regards,
> >
> >Levent Erbora
> >
> >PS: I have absolutely no affiliation with mtrader.com whatsoever. I am not
> >even a customer. I am just a private trader trying to make a living
> >daytrading stocks :-)
> >
> >
> >
> >
>
> ______________________________________________________
> Get Your Private, Free Email at http://www.hotmail.com
|