I am so agreed with what KC has mentioned in how MF should be prevented, and only those who are really understand how to use it and use it in the prudent way. Especially, if you invest in indexes and future market. The main players are Investment Institutions. Don't be surprise that your position is being monitored and by using the margin they have the chance to cut your position. Hence, the good adviser will ask you to use 2% of the margin and 98% to support the unexpected circumstances. Very good article, hope this can help some young investors and older investors too (Me included). Thanks for the sharing
KC has presented with facts and figures any disagreement should only be confronted with another set of facts and figures. His caution on margin account is presented with good faith.
I am a late comer into i3. I joined at the time when KYY was riding high on LiHen, Homeritz and another stock, probably VS. He made huge gains on these stocks. He must be doing something right. Perhaps he was skillful. Or, perhaps he took too much risk and luck was with him then.
KYY made another killing in Hengyuan. His winning streaks did not go unnoticed.
These were the stocks that I can recall when KYY mafe huge gains.
On the otherhand, KYY has his many losses in stocks too. I recall some here. Jayatiasa was touted as the most undervalued plantation stock at one stage. His involvement with Xingquan did not work out as he perceived despite his visit to its factory in China. His recent involvements with Eversendai and Jaks are still unfolding. The final outcomes are much awaited. Also, the LHDN investigations into his tradings must be unsettling and may provide guidance to others who are full time big traders. Rather intetestingly, not having an income tax return since retirement despite purportedly very wealthy is a surprise when first shared.
There are many valuable investing that can be learned. Thanks for sharing.
Dear all, KC always walks the walk and talks the talk as oppose to General Raider talks the talk but does not walk the walk. If General Raider will to MF his stocks pick long ago he already bankrupt and now walking the street of Petaling selling his backside to pay off his debt Period. Thank you
If u tell people do not use margin for investment bcos u will lose monies, then u may as well tell people don invest at all in klse loh...!!
Bcos like KC says 83% of participants lose monies mah...!! Based on KC arguement it is very irresponsible if kc encourage people even to use cash to invest in klse bcos 83% chance of losing loh...!!
Raider says & think differently, for u to invest, u need to improve your skill to be the 17% of the successful participant loh...!!
If u cannot be one of the 17% the consistent successful participants, for the sake of the financial health of ur family, u better pack ur bags & hang ur investment boots, bcos ur not good enough loh..!!
But if u r one of the 17% successful investors, then margin is a successful tools that will make u much richer than u should be loh...!!
I agreed with KC. I worked in Margin Department in stockbroking firm before. I can confirmed and testify again here that "less than 1% actually make money from MF over a 5 years period or longer" !!! Why risk yourself and let broking house (or investment bank) make the money ? I term of risk-reward ratio, I believer it is better to risk the money in casino than via MF.
Stock market goes up and down. MF is good friend for speculators in uptrend but turns killing enemy when down.Most important when we enter the market,take care not to lose so much and don't expect to get rich overnight. Prudent investors will buy under value stocks with low gearing and hold .Rising tide lift all ships. Investors may make less money than MF speculators if both selling on right time during rising tide but they are contented.When tide is suddenly down investors will keep the shares under their pillows on paper loss but it will be a painful night for MF speculators if they encounter margin call.
Cherry 88 gives a very good advice. Stockraider may make money with MF you may continue doing so.Others can continue to invest by holding stocks within their means. Simple as that.
>>>Sslee Dear all, KC always walks the walk and talks the talk as oppose to General Raider talks the talk but does not walk the walk. If General Raider will to MF his stocks pick long ago he already bankrupt and now walking the street of Petaling selling his backside to pay off his debt Period. Thank you 09/08/2018 08:59<<<
Rubbish loh...what type of pariah stockbroking margin CO this cherry is working where 99% losing loh ??
Some more 5 yrs or longer...reading ah ??
1. Margin lose so long meh ?? 2. Margin holder no cut loss meh ?? 3. 5 yrs how u know the margin account losing meh ?? 4. U can remember what stock they buy or sell ah ??
Very suspicious loh...this cherry is talking loh....it is done just to discredit aspiring margin holder loh...!!
Posted by cherry88 > Aug 9, 2018 09:44 AM | Report Abuse
I agreed with KC. I worked in Margin Department in stockbroking firm before. I can confirmed and testify again here that "less than 1% actually make money from MF over a 5 years period or longer" !!! Why risk yourself and let broking house (or investment bank) make the money ? I term of risk-reward ratio, I believer it is better to risk the money in casino than via MF.
Aspiring Newbies Margin holders...should not be manipulated that 99% of them will lose monies loh...!!
Do not subscribe & manipulated to the point of gambling stand a better odds compare to good steady investment using margin by a reasonable good investor loh...!!
Using margin ur success odds r not that far from cash investor loh...!!
Newbies should start using a small margin as young as possible, b4 it is too late loh.....!!
Margin is a good way to accumulate wealth if only u do it right loh...!1
Last round TA Enterprize force sold Uncle Kyy jaks shares under margin account.
So good. When uncle kyybought he is paying both commissions and interest to TA. When TA force sell uncle kyy shares under margin they make commision again.
WITH UNCLE KYY AND HIS GAMBLING MACAI AROUND TA AND INSAS SURE KAYA LEOW!!!
If raider use margin to buy Hengyuan, raider will be safe & just like KYY and will make a alot of monies, bcos the margin call help kyy to make alot of monies loh...!!
But unfortunately raider no use margin on hengyuan mah...!! Posted by 3iii > Aug 9, 2018 11:19 AM | Report Abuse
Mr. R's target price for Hengyuan is $40.
Hengyuan dropped from 18 to 10. Mr. R: "I sold because the price hit my stop loss level."
Hengyuan rebounded. Mr. R: "I bought and my average cost is $12. I will be dumb dumb holding because this stock is worth $40."
Hengyuan dropped from 14 to 6. Mr. R: "I was lucky. Saved by my margin calls. I escaped with some profits."
Posted by cherry88 > Aug 9, 2018 09:44 AM | Report Abuse
I agreed with KC. I worked in Margin Department in stockbroking firm before. I can confirmed and testify again here that "less than 1% actually make money from MF over a 5 years period or longer" !!! Why risk yourself and let broking house (or investment bank) make the money ? I term of risk-reward ratio, I believer it is better to risk the money in casino than via MF.
Less than 1% making money???
Either u bullshit or 99% of yr clients are damn stupid or very very soil
NOTICE THE CAVEAT OF CERTAIN TIME...LIKE 1997/98...I M SURE DURING THAT TIME CASH HOLDER ALSO LOSE LIKE HELL MAH...!! POSSIBLE 99% LOSE MONIES LOH.....!! IN FACT MARGIN HOLDER HAS THE BENEFIT OF BEING FORCE SELL LOH....!1
BUT HERE THIS CHERRY SAYS FOR 5 YRS WOH....99% LOSE MONIES WOH...THE CHANCE OF CHERRYF LYING TO DISCREDIT MARGIN HOLDERS IS VERY HIGH LOH...!!
Posted by 3iii > Aug 9, 2018 11:36 AM | Report Abuse
>>>>Posted by cherry88 > Aug 9, 2018 09:44 AM | Report Abuse
I agreed with KC. I worked in Margin Department in stockbroking firm before. I can confirmed and testify again here that "less than 1% actually make money from MF over a 5 years period or longer" !!! Why risk yourself and let broking house (or investment bank) make the money ? I term of risk-reward ratio, I believer it is better to risk the money in casino than via MF.
<<<<
I believe you.
My stockbrokers told me the same story.
The MAJORITY lost money.
During certain times, in 1997/98, many lost their pants and retired permanently from the stock market.
its more like gambling.........going to the casino without proper skill in bad enough..... going to the casino without proper skill AND borrowing from the ah loong to play is even worse.........
If statistics says 80% or KC says 83% of stock players are losing, then what the fuck u r in i3 talking about share leh ?? Better fuck off, for your better financial health loh...!!
For margin holder is not too far off from cash players loh...!!
Of course the above figure had been exaggerated based on raider extensive research the probability of success as a stock investors is between 35% to 45% loh....!!
So margin players also around this area loh....!! Raider & Gang success rate is rate using margin is almost 100%, due to superior skill,financial research , risk management & better contact and good business sense loh...!!
Thats why raider, says if u develop ur investment skill your chances skewed towards very high success loh....!!
Thats why raider encourage newbies use margin as soon as possible & quickly improve ur investment skill loh...!!
Posted by Imemyself > Aug 9, 2018 02:50 PM | Report Abuse
Cherry88, you are correct. 80% or more share players lose money, what will be the percentage of players using MF will win money?
Posted by stockraider > Aug 9, 2018 07:56 AM | Report Abuse X
After so much arguement on margin, especially with KC, raider have concluded using margin is neutral, there is no bad or good about it loh....!!
For every 100 arguement the opponent can say bad of margin, there are another positive arguement good about margin loh...!! Why like that leh ??? It is actually for margin there are 2 side of the coin mah....!! One side negative the other positive loh...!!
So margin is just a tool of investment....the key to success still lies mainly to the skill of investor plus a little bit positive of luck loh..!! The main reason why people fail bcos their skill no good mah...!! Just like if u drive car without proper training, very high risk of accident loh...the same applies to margin loh...!!
Why margin the whipping boys leh ?? Human nature loh....to blame anything and everything other than themselves loh....!! So alot of failed investor will claim margin is the cause loh, it is amazing some of this failed people do not use margin at all loh...!!
But why raider say no, it is not due to margin leh ?? In the mkt 75% participants lose monies in the long run...whether use margin or not, why leh ? Why even long run,they lose monies, is it not share investment fundamental in long run advantage meh ?? Ans; Sustained Success in Investment we need deal with overall positive expected value outcome mah....!!
A clear example if u flip coin...Head 50% and Tail 50% mah...!! So the $$$$$ payout if u bet fairly Rm 1....the payout or the loseout is Rm 1 loh....!! Suppose the rule is change to if u bet Rm 1 head, the payout is rm 1.20 head, thus this advantage of HEAD bet, raider called a thereotical positive outcome....which the foundation of investment success...where we invest loh......!!
So a sustainable investment success, must seek potential positive thereotical positive outcome probability, no matter, whether they use cash or margin to invest loh....!!
JUST REPEAT THIS LOH; For every 100 arguement the opponent can say bad of margin, there are another positive arguement good about margin loh...!! Why like that leh ??? It is actually for margin there are 2 side of the coin mah....!! One side negative the other positive loh...!!
WHEN RAIDER HAVE TIME...EASILY RAIDER can refute ALL THE NEGATIVE POINTs THAT KC RAISED ON MARGIN INVESTMENT LOH.....!!
WHY THIS IMPORTANT ?? THE WAY KC TALK LIKE, HE COMPLETELY DO NOT UNDERSTAND....WHY PEOPLE FAILED IN INVESTMENT LOH....!! THERE IS A BIG MISCONCEPTION THAT MARGIN IS EVIL BUT IT IS NOT TRUE LOH....!! Margin is neutral, it is just a tool loh....!!
Margin is neutral lah..just dont let some cunning old shares operator brainwashed n misleaded u to buy his shares at high prices using margin when he wanted to dispose...
Why ordinary people need to invest into stock market with margin? Dont have enough money? I believe if one is capable of making money in stock market, cash account will make you rich.
I mean ordinary people. Not bosses to goreng or to secure controlling stakes. Why need margin account at all?
He is a biggest leverage buyer dealing deravative mah....!!
Posted by 3iii > Aug 9, 2018 03:55 PM | Report Abuse
Warren Buffett: Leverage is also a way to get very poor.
Unquestionably, some people have become very rich through the use of borrowed money. However, that’s also been a way to get very poor. When leverage works, it magnifies your gains. Your spouse thinks you’re clever, and your neighbors get envious. But leverage is addictive. Once having profited from its wonders, very few people retreat to more conservative practices.
And as we all learned in third grade – and some relearned in 2008 – any series of positive numbers, however impressive the numbers may be, evaporates when multiplied by a single zero. History tells us that leverage all too often produces zeroes, even when it is employed by very smart people.
Jonathan keung , well said, there are those who used credit cards to play in the market. These credit card issuers dump cards at you. When they know u can only service the minimum payment per month, they give u more cards.
What the fuck use credit card play mkt the all in cost of financing, is close to 20% pa mah....use lah margin only 5% pa mah...!!
Posted by hollandking > Aug 9, 2018 11:37 AM | Report Abuse
Jonathan keung , well said, there are those who used credit cards to play in the market. So what's the big deal? These credit cards issuer dump cards at you. When they know u can only service the minimum payment per month, they give u more cards.
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