Social Icons

Wednesday, August 10, 2011

What I learn so far from margin investing during the August 2011 stock crash

For the past couple days, I notice some technical difficulties with TD Waterhouse trading platform but nothing major. I had written about some of them previously. But tonight, I won’t have to wait until tomorrow morning to access my Balances Data. TD Waterhouse has updated everything and it’s currently 12:51AM Eastern Time on August 10. Way to go TD Waterhouse! Please continue that way. I need you to be working properly. Especially at this time. Don’t make me calculate myself my margin value.

For August 9, 2011:

Non-registered portfolio value: 103 443$
Money used on margin: 40 470.31$
Money left on margin: 16 938.86$

Today data were much more better. At a certain point of the day, my portfolio hit the 103 929.61$ and when it happen, I was very very very happy and of course, when it happen, I post the great news right here on my blog.

I want to believe that the worst is behind, but so far during this correction, I learned that investing on margin can be quite stressful. A usual market volatility is easy to handle. But a stock crash is not. However, I am getting through it so far, but it’s not because I am a good stock picker, it’s a matter of being extra lucky and also because my portfolio is diversifies in all sorts of stocks. If a lesson can be learn from my experience with margin investing well, it will be a “try to avoid” because margin investment is difficult.

At first, I was supposed to use my margin money at an interest rate of 4.25%. I did, but a big part of the margin went on stocks, to satisfy a maybe too in deep taste for adventure. This being said, I do not regret my move and I totally assume what I am in right now. It was my decision to invest on margin, no one else. But I will no longer invest on margin, just on my own money. The lesson learn was good, wasn’t? But this was needed in my case.

Let’s hope for me please that the Maple Group deal for the TMX Group (X) goes through so I can cash in more than 5k and that way, decrease my margin usage. Please.

No comments:


Thank you

Thank you for visiting!
Blogger Templates