Gotta stay fully invested. Ride the hard times and keep ample margin room for the down periods.

For instance, I only use 1/8th of my margin room. Some with higher risk tolerance would say that's a poor move, the market is booming and margin is cheap. To that I would say I still have to sleep at night. I need to live comfortably without worry of a market crash. It also gives me access to margin in the event of a crash since even if the market drops 50% ill still have access to additional margin.

This post was edited by SBD on Mar 11 2021 10:25am

I'm using 100% of my margin right now because I don't have that much in the market and I can cover a margin call out of my checking account.

As the years pass and I get more heavily investment I'll have to pair that down significantly. Once I have 500k in my account there's no way I'll be able to cover a margin call out of my checking or savings lol.

Yeah, exactly and although possible if there's a quick recovery like we saw with the covid dip you could cover with a line of credit but wouldn't want to have to cover a margin call on losing investments with a line of credit if it's a long recovery.

I still keep a line of credit open though. Although if the market tanks to the point where I get called the world has other problems.

This post was edited by SBD on Mar 11 2021 01:33pm

SBD index when?

Its very Canadian. I wouldn't think many Americans would be buying what I hold.

Not individual Americans anyway.

This post was edited by SBD on Mar 11 2021 01:34pm

Red/Red

I didn't think the FED was going to be able to tame our LT rates.

I'm on very little margin, maybe 4% which can be covered with a transfer. I'm really disappointed that I only invested roughly 30% of my cash these past 2-3 weeks.

Ahh well, more cash on the sidelines. I don't think this is the end but I'm usually wrong on timing things, lol.