No. of Recommendations: 8
A few short months ago(JAN) I was sitting pretty. I had no credit card dept. I only had a car payment and rent. I owned: 200 sh INTC, 100 sh DELL, 200 sh DIS, 100 SH HDI, 100 sh EGRP, 100 sh CCRD. I was about to get engaged. The ring I picked out cost $7500. I had not saved for it and I did not want to wait so I bought it on 90 days same as cash. I had just completed one short term margin trade and made just over $1000. I thought to myself, "if I do this six more times I'll have the ring paid for". Well thanks to some volatility in LU and WCOM I easily made the rest of the money I needed to pay for the ring. But I did it with about 45 days before I had to mail the check to pay off the ring. I kept on trading. In 3 months I made $15K. Free money. Until Mar/Apr when VRTY, XCAR, and PMTC all tanked. I was margined on all three. Not only did I lose everything but I never paid off the credit debt. Now I'm struggling to save money and pay down the dept. With luck you can beat the market in the short term. I thought I had it beat. I thought I was smarter than all the conservative people saying "don't buy stock you can't afford". I will never trade on margin again.
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