Dax in the Evening

hhiusa · Dec 30, 2015

Oscar Reed said:
No

I know you can leverage, which leads to greater risk. Why not just put up the extra capital instead of leveraging?

Oscar Reed · Dec 30, 2015

hhiusa said:
I know you can leverage, which leads to greater risk. Why not just put up the extra capital instead of leveraging?

Got stung by mf global so won't do that any more

hhiusa · Dec 30, 2015

Oscar Reed said:
Got stung by mf global so won't do that any more

What happened?

Oscar Reed · Dec 30, 2015

hhiusa said:
What happened?

http://asic.gov.au/about-asic/media-centre/find-a-media-release/2011-releases/11-237ad-mf-global/

Got 80 cents in the dollar back.

Funds were held for 2 years plus.

MF were CFD and 100% cash equities,

Are you new to trading.

Oscar Reed · Dec 30, 2015

Last trading day of the year for the DAX.

Should have no problem a run down to 10820/30

Hard to see it breaking 10780 before the close.

Should see heaps of sellers at 10940 area if we go that high.

hhiusa · Dec 30, 2015

Oscar Reed said:
http://asic.gov.au/about-asic/media-centre/find-a-media-release/2011-releases/11-237ad-mf-global/

Got 80 cents in the dollar back.

Funds were held for 2 years plus.

MF were CFD and 100% cash equities,

Are you new to trading.

No. It seems like common sense to me. Why would anyone want the increased risk of leveraging if they had the capital to back it? If they are offering 100:1 leverage so that you can control $10,000 of CFDs for $100, then why not trade $10,000 without the leverage. If you do not have the $10,000 to start with, then you should not be trading with that amount.

It seems pretty clear that leveraging is for people with capital constraints. If you want 100:1 leverage, then just increase your cash flow by 100 fold. It is like buying shares with a credit card. It is not a good idea to trade with money that you do not have.

In regards to your last broker, how does that relate to wanting to use leverage? It sounds like you just choose a bad brokerage firm.

Bummer. I guess the regulations are quite different in Australia. That link was enlightening. Thank you.

hhiusa · Dec 30, 2015

According to ASIC, in Australia, if the brokerage house you do business with is put in external administration due to insolvency, you become an "unsecured creditor". Basically, this means you are $%#!ed if anything happens. In your case Deloitte stepped in as liquidator.

Since you were an "unsecured creditor", you did not have charge of the company's assets. Banks usually require a charge over company assets when they provide a loan, and so are ‘secured creditors’.

ASIC states that it is the responsibility of all Australians to be "financially literate". To that end, they work to increase the country's financial literacy.

tar · Dec 30, 2015

hhiusa said:
No. It seems like common sense to me. Why would anyone want the increased risk of leveraging if they had the capital to back it? If they are offering 100:1 leverage so that you can control $10,000 of CFDs for $100, then why not trade $10,000 without the leverage. If you do not have the $10,000 to start with, then you should not be trading with that amount.

It seems pretty clear that leveraging is for people with capital constraints. If you want 100:1 leverage, then just increase your cash flow by 100 fold. It is like buying shares with a credit card. It is not a good idea to trade with money that you do not have.

How that's different than selling/shorting a stock that you dont own ?

Oscar Reed · Dec 30, 2015

Traded the chart tonight instead of the dollars.

End result was crap, should have taken more trades for a better result.

One trade was manged poorly.

Have some over night trades, no come back tomorrow night.

Might have to hedge Aus/Asia if things turn ****.

hhiusa · Dec 30, 2015

tar said:
How that's different than selling/shorting a stock that you dont own ?

It is not. I never said that I short stock.

tar · Dec 30, 2015

hhiusa said:
It is not. I never said that I short stock.

Ok so you only buy stocks , and according to another thread you dont use stops but rather wait and double down and when it goes your way you close at +1.5% . Is there a word for that ?

hhiusa · Dec 30, 2015

tar said:
Ok so you only buy stocks , and according to another thread you dont use stops but rather wait and double down and when it goes your way you close at +1.5% . Is there a word for that ?

You do not read all that well. I said that I do not use predetermined price stops. I actually do my job of watching the market and apply a little patience. I use time stops but not all the time. I make an executive decision about when to sell.

Yes, I would rather double down. I do not always close at 1.5%. I wait at least unti I make 1%. Sometimes, I wait until I make up to 3%. It is on a per equity basis.

counter_violent · Dec 30, 2015

hhiusa said:
You do not read all that well. I said that I do not use predetermined price stops. I actually do my job of watching the market and apply a little patience. I use time stops but not all the time. I make an executive decision about when to sell.

Yes, I would rather double down. I do not always close at 1.5%. I wait at least unti I make 1%. Sometimes, I wait until I make up to 3%. It is on a per equity basis.

And what happens when you double down and the pain continues? Do you double down again until the pain stops?
Ever thought of playing the other side at the time when pain is occurring, rather than adding to it?

tar · Dec 30, 2015

counter_violent said:
And what happens when you double down and the pain continues? Do you double down again until the pain stops?
Ever thought of playing the other side at the time when pain is occurring, rather than adding to it?

Not to forget thats done in individual stocks = ouch !

counter_violent · Dec 30, 2015

tar said:
Not to forget thats done in individual stocks = ouch !

Yep=bonkers !

hhiusa · Dec 30, 2015

counter_violent said:
And what happens when you double down and the pain continues? Do you double down again until the pain stops?
Ever thought of playing the other side at the time when pain is occurring, rather than adding to it?

Why do you guys keep posting youtube videos instead of words? Use your words!

Yes, I double down again. The market requires patience, which is an uncommon virtue. Stop trying to chase the market and get ahead of it. What is truly "bonkers" is trading with money that you do not have.

“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”
-Buffett

hhiusa said:
Why would anyone want the increased risk of leveraging if they had the capital to back it? If they are offering 100:1 leverage so that you can control $10,000 of CFDs for $100, then why not trade $10,000 without the leverage. If you do not have the $10,000 to start with, then you should not be trading with that amount.

It seems pretty clear that leveraging is for people with capital constraints. If you want 100:1 leverage, then just increase your cash flow by 100 fold. It is like buying shares with a credit card. It is not a good idea to trade with money that you do not have.

Oscar Reed · Dec 30, 2015

Will hedge SP or ASX if required in next 18 hours.

Retrace to 10740/50 looks okay on Monday with the correct lead.

hhiusa · Dec 30, 2015

Oscar Reed said:
Will hedge SP or ASX if required in next 18 hours.

Retrace to 10740/50 looks okay on Monday with the correct lead.

What is your leverage ratio?

Oscar Reed · Dec 30, 2015

hhiusa said:
What is your leverage ratio?

No idea

hhiusa · Dec 30, 2015

Oscar Reed said:
No idea

So you have no idea what your risk is or how much money you are essentially borrowing?

:-0:-0:-0:-0:-0:-0:-0

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