Posted by speakup > 2016-02-23 14:10 | Report Abuse

borrow kau kau from margin account.
when market crash, MARGIN CALL, then we all can buy CHEAP CHEAP! :-)

Posted by Desa20201956 > 2016-02-23 14:13 | Report Abuse

No right way, no wrong way
Every thing is about risk and return.

You are not entitled to criticize another guy just because he trades on margin.

His risk tolerance is higher than yours.

But those who want to be future tycoons, and who doesn't?......you need to take on borrowings, learn to manage the risks.

Posted by 3iii > 2016-02-23 17:16 | Report Abuse

Desa short and to the point. Stock picking is only one part of investing. The other equally important parts are asset allocation and portfolio management.

Posted by JT Yeo > 2016-02-23 18:02 | Report Abuse

1. During market crisis, the correlation of every single stock and asset class goes to 1.
2. If I buy PBB at $80 and Harta at $20, they have negative correlation but boy, the risk is bigger than whale

Posted by PlsGiveBonus > 2016-02-23 18:15 | Report Abuse

Promote everyone use margin account
Later we will see many millionaire bornt in just a few months

Posted by shinado > 2016-02-23 23:08 | Report Abuse

JT Yeo raised valid points. For his point no.2, a more diversed portfolio is needed (i.e. 10 stocks or more). But when point no.1 comes, everything will go down south.

In my opinion, margin call can be used when the following is observed:
1. Your risk tolerance is very high. Many business owners/entrepreneurs share this trait.
2. When market hit rock bottom. So deep down that prices will not go down further. But do you know when will that moment come?

Also, going for margin call when prices are high or when market in general is very bullish amounts to suicide as well. More downside than upside.

Just my 2 cents.