3 ms·

Trading on margin!? In the most topped out market ever. You do realize that you pay interest on your margin. And when the market drops (the most likely outcom

Trading on margin!? In the most topped out market ever. You do realize that you pay interest on your margin. And when the market drops (the most likely outcome these days), your losses are magnified. W. Buffet recommends that investors not buy on margin. Also... ETFs are newish and rather untested at their current saturation levels. You are blindly buying a stock based on it's capitalization. This defeats the purpose of the market, which is to crowd source the balancing of supply & demand. ETFs create a pyramid scheme out of the market. It will work for a while, but near the top (now) you better get your money out. I think you should read what top hedge fund managers are doing these days. You will be hard pressed to find one that is all in + margin to the overall index fund. Many have significant short positions and a lot of cash. Your blog post is just another link in the pyramid scheme nature of the whole thing. (I can do it.. so can you!)

nodesocket 10y ago
> These days, with computer trading, that 40% drop may happen faster than 100 ms There are circuit breakers that trigger at 7%, 13% and 20% right? Now, I don't know if they are tested against HFT these days, but I would suspect they could rollback trades if needed. Also, there is Rule 48[1] to help. [1] - https://en.wikipedia.org/wiki/Rule_48 https://en.wikipedia.org/wiki/Rule_48
- codecamper 10y ago
  who's computer is faster? The traders or the circuit breaker trigger?
  - nodesocket 10y ago
    Correct me if I am wrong, but since all trades go through the exchanges (circuit breakers), them right? Plus they can rollback trades if needed.
    - codecamper 10y ago
      Hey. I just realized I was maybe too harsh on all this. You are right, investing is better than a savings account. However, be careful these days. Read what other top investors are doing. barrons.com & marketwatch sometimes say what other top investors are doing. Many are keeping some cash. Good to have when the market drops. Many have short positions. The best returns come when you buy after a correction & sell high. ETFs do well when the market is marching upwards. Maybe one more year of that but it can't go on forever. 1.1 to a high power starts to consume everything in the universe.
nodesocket 10y ago
> See you in the welfare line dude. Unlikely dude.
- codecamper 10y ago
  I revised my post.. have a read. What you are doing may seem great.. but it really is not a great idea. I highly suggest you roll back & get off the margin. Put some money into gold perhaps. (IAU) Keep the margin for sure bets if you can find some.
  - nodesocket 10y ago
    Not that it changes my opinion, but I am no longer using any margin (took some profits). My Robinhood post was originally from Nov 17th 2016, but I updated it on Feb 6th 2017.
    - codecamper 10y ago
      Update your blog post then. It's bad advice and could cause others to lose money.
      - nodesocket 10y ago
        Sure no problem, updated. I'm not trying to hide anything. For the record I am bullish and don't think we are doomed and on the verge of a market meltdown. Perhaps a deserved minor correction.

nodesocket 10y ago

> These days, with computer trading, that 40% drop may happen faster than 100 ms There are circuit breakers that trigger at 7%, 13% and 20% right? Now, I don't know if they are tested against HFT these days, but I would suspect they could rollback trades if needed. Also, there is Rule 48[1] to help. [1] - https://en.wikipedia.org/wiki/Rule_48 https://en.wikipedia.org/wiki/Rule_48

codecamper 10y ago
who's computer is faster? The traders or the circuit breaker trigger?
- nodesocket 10y ago
  Correct me if I am wrong, but since all trades go through the exchanges (circuit breakers), them right? Plus they can rollback trades if needed.
  - codecamper 10y ago
    Hey. I just realized I was maybe too harsh on all this. You are right, investing is better than a savings account. However, be careful these days. Read what other top investors are doing. barrons.com & marketwatch sometimes say what other top investors are doing. Many are keeping some cash. Good to have when the market drops. Many have short positions. The best returns come when you buy after a correction & sell high. ETFs do well when the market is marching upwards. Maybe one more year of that but it can't go on forever. 1.1 to a high power starts to consume everything in the universe.

nodesocket 10y ago

> See you in the welfare line dude. Unlikely dude.

codecamper 10y ago
I revised my post.. have a read. What you are doing may seem great.. but it really is not a great idea. I highly suggest you roll back & get off the margin. Put some money into gold perhaps. (IAU) Keep the margin for sure bets if you can find some.
- nodesocket 10y ago
  Not that it changes my opinion, but I am no longer using any margin (took some profits). My Robinhood post was originally from Nov 17th 2016, but I updated it on Feb 6th 2017.
  - codecamper 10y ago
    Update your blog post then. It's bad advice and could cause others to lose money.
    - nodesocket 10y ago
      Sure no problem, updated. I'm not trying to hide anything. For the record I am bullish and don't think we are doomed and on the verge of a market meltdown. Perhaps a deserved minor correction.