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Greed can lead to downfall

baseerahmed

I keep telling u i hate to do long post.I like to see amd listen.

U have to organise something in spore during august so we can talk over cup of coffee.

i do not drink.

 

We Asians are brought up with the thinking that borrowing money is a bad thing. One must spend within what one has . OPM and not OPM .Use only personal money and not other people's money. Hence the fear and the taboo of taking a loan. " what if cannot repay huh , then how ? " Remember Shylock ?

I had an American visitor who told me that when he was about 10 years old he had asked his father money to buy himself a bicycle. His father took him in his car to the local town bank and introduced him to the bank manager. He was asked by his father to ask the manager for the loan and that he got the money for his bicyle.That was his very first loan from the bank , he said. I do not know if he was kidding but such is the upbringing in the west.

About the term Margin in the stock market , it gets connected with the leverage. U might win big but you might also lose big. For lack of proper education on the subject , the thinking is : its better to be safe than sorry.

For the benefit of many in here, I think it would be great if geojam would drop some postings on the subject.

 

 

livermore

My email is

geojam2@optusnet.com.au

get in touch when time gets nearer.

 

Sure! Let me know. One day I can introduce you to a stock guru I know from one of the company result briefing I attended:)  

 

livermore

hope i have time in spore, to meet up with u, during august to exchange some finer points of margin lending.

 

Hi Geojam,

Thanks for sharing!

Hi Singaporegal,

No problem:)

 

 

 

livermore

Let u in on this secret.

When i was invited to join the venture capitalist club in australia,all the members i spoke to have loan of some sort---be it margin or something else.

 So what does it say.

 

Hi Livermore,

Thanks for sharing!

 

In shares, mindsets are sometimes very hard to change. Experience affect people differently. 

 

livermore

Thank U very much.I am honoured.

I like to post more on margin lending,to spread the gospel,so to say,but i do not like writing long post as i am not good at expressing myself.And it also put myself to sleep.

To me,action speaks louder than words.

Cheers.thanks again.

 

oops forgot to mention the one I admire most is you, Geojam! 

 

You are the one I admire most here as you made it big in stock market. When 10 people say something is not good and 1 person say it is ok, it does not necessarily mean that odd person is wrong. So maybe when so many people make up something to be bad, it may be in-built into their minds. They don't even wish to calculate and convince themselves something perceived to be bad might not be as bad as they think.

 

When margin trade done in the right way and at the right time, the interest (for 1 year) from the loan one takes, is paid up in 1 - 2 weeks or even less. After that you just ride on profit.

 

livermore

agree with u.

Also,the documentation to get a housing loan from the bank is volumous,But with margin loan it is so simple.I can draw down few hundred K in quick time.

Normally,ppl react very shockingly when u tell them margin loan.Do not know why.

As u can see, i started using in 1994.Then i have to use my only house as security to get loan.Many a time,i play with house on the line.

But it is all history now and i got through it nice and cool.

I still have the margin loan facilities in place,just that i am more of a maintainer of wealth now than a builder of wealth when i was younger.

Cheers and have a nice evening.

 

During 2003, my broker asked me if I wish to open a margin account. He just said it is "double edge sword". I just went into it without much thought *ha*. One thing good about margin is I don't need to write cheque and also have more room to play. Don't need to crack my head which share to choose 

 

livermore

Out of curiosity,when did u find out about margin lending and start using it?

I discover it in around 1992/3,and start playing it big from 1994.

 

I shall read the Art of Investment later. I read business times Mon to Sat so I saw the article:).

 

I wish to try to find the book "The Intelligent Investor" by Benjamin Graham:).

 

 

 

livermore

yes........i heard my name mentioned.

yes,we are the champion.

have u read the article in today's business times on 'art of value investing'?

 

I shake hands with Geojam. We have similar styles:)

 

I think everyone school of thoughts has their merits. Perhaps some are good a looking at charts and trends, and thus they will find support to breakout using TA. On the other hand, I think some are quite adept in reading into financial fundamentals, as well as analsying the qualitative aspects of companies. At the end of the day, we all make money is the best, be it short-term trading, or long-term investing strategy! Cheers!

 

hahaha...

In this regard I can "hold hands" with Singaporegal.

Although I am frequently wrong in my TA signals, I still prefer it than thinking of fundamentals ...

ie good or bad fundamental, my decisions are purely chart-based.