Fed Raises Discount Rate by Quarter-Point to 0.75% (Update3)

[웃 910]

So you're holding positions overnight, and over weekends. Had any margin calls yet? You will, I assure you.

Good luck dude. I seriously hope you have a Plan B. You're going to need one.

You can only get a margin call if you spend more money than what is in the account. I'm not that stupid.

But, if you have a diversified portfolio a margin call won't do anything because all you do is sell some of your stocks until you are not on borrowed money. You can't get a margin call if you are not trading on borrowed money (trading with more money than is in the account)....

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Where idiots screw up is when they go all in 1 stock or 2 and then get a margin call (I've done this before when I was a noob)...

Example with $10,000 account

Buy $20,000 of stock ABC @ $10/share (2,000 shares)

In this example Trader Dumb ####### bought 1,000 shares @ $10/share with his own money.

And Trader Dumb ####### bought the other 1,000 shares @ $10/share on borrowed money (LOAN)

Stock ABC sinks down to $5/share.....

Now the 2,000 shares Trader Dumb ####### bought for $20,000 are now only worth $10,000.

Unfortunately, Trader Dumb ####### has a $10,000 loan that he still has to pay back (see bold)!!!

So Trader Dumb ####### sells all his 2,000 shares @ $5/share for $10,000....But he still has to pay his broker the $10,000 loan

Trader Dumb ####### is now wiped out. His account is worth $0.

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[웃 910]

BTW Scandal, what are you doing posting on the GOOG Yahoo Finance board???

Here is a complex analysis of GOOG

You may need to know a few common systems analyst terms to follow, I apologize in advance.

If you look at the DFD for the customer CRUD you notice a Quintic Polynomial as the original growth extrapolation variance derivative. Obviously this was collinear at the begining and now is more a function of an n-dimensional Nonsingular matrix.

The current price trend will now become more of a tangeant line toward a multiplicative property of equality based on the markets mean value based on Rolle's Thereom. There is no difinative of a GCF or GLB to sustain a comparative balance Gaussian elimination, or even A Gauss-Jordan elimination, however there is Echelon form af a matrix that suggest the divergent directrices of a hyperbola suggest one absolute trend will ensue.

Bottom line, given enough time, GOOG will go up and down, but ultimately trend higher.

I hope this clears things up a bit.

LINK

Edited February 19, 2010 by Lord Infamous

[scandal 951]

BTW Scandal, what are you doing posting on the GOOG Yahoo Finance board???

Your honor, I plead not guilty.

(Actually, I know guys in our research department who talk just like that....)

[mawilson 2,133]

An individual trader sitting at home or in a bucket shop looking at his eSignal charts simply hasn't got a chance to compete against an organized firm that has developed proprietary algorithms and is continuously backtesting those models against mounds of historical data. That same individual trader has no chance against the firm who has colocated their models at the exchanges on super low-latency connections. And he has no chance to get in and out of a trade when he's competing against firms that are able to profit from very rapid trading on penny-wide spreads.

1) They are playing different games

2) Not all strategies are latency-sensitive