Is investing on margins a reasonable thing to do assuming you know what you're doing? For eg., RH rate is only 2.5% now

Mar 9, 2021 13 Comments

#personalfinance #investments #margin #robinhood #interestrate #borrow

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TOP 13 Comments
  • New
    zDHT25

    New

    zDHT25
    If you have to ask you probably don't know what you're doing. For God's sake, we had two or three folks that day traded without knowing which lots they were selling.
    Mar 9, 2021 3
    • New
      zDHT25

      New

      zDHT25
      Who said that? Being risk averse is good (I don't trade on margin either). All I meant was, if you have to ask on blind you probably don't know what you're doing and shouldn't trade on margin
      Mar 9, 2021
    • Have to disagree with that logic. I do know what I'm doing and spend quite a bit of time researching moves, not doing mindless ape shit. However, what I need perspective on is the risk vs. reward ratio of margin investment, which I currently do not do.
      Mar 9, 2021
  • Amazon
    kmSQ73

    Go to company page Amazon

    kmSQ73
    NEVER risk more than you can afford to lose. Margin is like crack, you can't do just 'a little', and it'll destroy your account in the end. Successful traders usually tap 2-20% of their account per trade. Plenty of room for failure while "staying in business". Even with years of experience most can't surpass 50/50 win/loss. The key is limiting risk and quickly cutting losses. Margin does the opposite.
    Mar 9, 2021 1
  • When the tide goes out, you can tell who was skinny dipping.
    Mar 9, 2021 0
  • Google
    een

    Go to company page Google

    een
    I use a margin account but rarely use margin. I used to use margin when my account size was tiny (learning to trade) and yoloing all in + margin was still ok because I could repay it in full.

    That being said, anyone here using portfolio margin?
    Mar 9, 2021 3
    • Amazon
      vghnn67ds

      Go to company page Amazon

      vghnn67ds
      I would do portfolio margin unless you can get a good rate. Interactive brokers has good rates but they will close your positions without warning. If you have enough capital like 500k you can get TD to lower your rate a lot. I have looked into it but unless you are able to actively manage you can end up like Melvin and GME really fast. You have to constantly hedge because one really bad day can wipe you out.
      Mar 9, 2021
    • Agreed, it's a constant fuckall world out hberet
      Mar 9, 2021
  • New / R&D
    Psynaptic

    New R&D

    PRE
    Neuralink
    BIO
    Working on Brain Machine Interfaces at Neuralink
    Psynaptic
    If it wasn't, it wouldn't exist as a concept.
    Mar 9, 2021 1