Honestly, I myself have suffered a margin call before and have nearly gone bankrupt 2 times in my life.
One of it happen in 2004 and the other happens in 2008.
In 2004, I played only 2 stocks, Pantai-wa and Pilecon-wa and I just graduated from University. I have 600 lots of Pilecon-wa at 10 sen and 30 lot of Pantai-wa at 30 sen, with a margin of Rm 30,000. One fine day, Pilecon was suspended. So, i was basically insolvent. What can I do? I can only wait. Right? I prayed and wait for the next bull and at the same time, I roll over any expiring warrant. Thank god, Pantai-wa go up with the merging with Park May or else, I am insolvent. It went up to Rm 1.
In 2008, I was a little bit better in shape, I racked up to RM 140,000 with RM 100,000 margin. Alas, the sub-prime crisis set in. What I make in 10 years, I lose it all in 1 month - September 2009. I tot that BCTech (Semiconductor stock that drops from Rm 1.40 to 10 sen should be safe) and APLI (A take over the target by Stanley Thai should be safe with bird-flu around and he promised a giant leap forward with a panther logo and right issues with free warrants that had been pre-approved by shareholders). Altogether, I got more than half a million in each counter respectively and very highly in debt. Within a month, all come to ashes, APLI delisted and BCTech delisted as well in a short while. So, I was really shattered. I have no way to run and contemplated the inevitable. My only solace is only god and I don't have the luxury to answer any margin call, after the end of the onslaught in December 2009, I am left with RM 40,000, slightly more than the amount I have in 2003 when I just graduate of RM 32,000.
Nevertheless, I know that is due to my lacking knowledge of how the stock market works that cause me to lose. I start to read thousands of books and think and experiments.
"The stock market is the cruelest and meanest game ever created by human" claimed by Jesse Livermore.
So, I make it a priority to be a "student of learning" in the stock market my priority. During those bleak moments, I cried to sleep each night. I believe that in order for me to be good in stock, I must sleep with the stock each night. Likewise, the best chicken breeder knows that he must sleep with the chicken.
But, I make back multitude that amount, when I catch the bull at the horn as bullishness resume.
So, it is okay to lose in a bear. Everyone loses. Pray that a new bull come or what we say a "silver lightning will always come after every thunderstorm" and you will make back 5 to 10 times your initial money due to the multiplier effect of catching the bull at the horn, but you must make sure that you must be willing to learn and improve yourself .
"You cannot break good principles, but you can break yourself going against the good principle." - Jesse Livermore sums it best.
Comments:
A Jewish book on stock-pick in the 1800s always say "Never answer a margin-call, admit your mistakes and close it."
Good Luck! Amigo!
Yours Sincerely,
Dr Lion.
One of it happen in 2004 and the other happens in 2008.
In 2004, I played only 2 stocks, Pantai-wa and Pilecon-wa and I just graduated from University. I have 600 lots of Pilecon-wa at 10 sen and 30 lot of Pantai-wa at 30 sen, with a margin of Rm 30,000. One fine day, Pilecon was suspended. So, i was basically insolvent. What can I do? I can only wait. Right? I prayed and wait for the next bull and at the same time, I roll over any expiring warrant. Thank god, Pantai-wa go up with the merging with Park May or else, I am insolvent. It went up to Rm 1.
In 2008, I was a little bit better in shape, I racked up to RM 140,000 with RM 100,000 margin. Alas, the sub-prime crisis set in. What I make in 10 years, I lose it all in 1 month - September 2009. I tot that BCTech (Semiconductor stock that drops from Rm 1.40 to 10 sen should be safe) and APLI (A take over the target by Stanley Thai should be safe with bird-flu around and he promised a giant leap forward with a panther logo and right issues with free warrants that had been pre-approved by shareholders). Altogether, I got more than half a million in each counter respectively and very highly in debt. Within a month, all come to ashes, APLI delisted and BCTech delisted as well in a short while. So, I was really shattered. I have no way to run and contemplated the inevitable. My only solace is only god and I don't have the luxury to answer any margin call, after the end of the onslaught in December 2009, I am left with RM 40,000, slightly more than the amount I have in 2003 when I just graduate of RM 32,000.
Nevertheless, I know that is due to my lacking knowledge of how the stock market works that cause me to lose. I start to read thousands of books and think and experiments.
"The stock market is the cruelest and meanest game ever created by human" claimed by Jesse Livermore.
So, I make it a priority to be a "student of learning" in the stock market my priority. During those bleak moments, I cried to sleep each night. I believe that in order for me to be good in stock, I must sleep with the stock each night. Likewise, the best chicken breeder knows that he must sleep with the chicken.
But, I make back multitude that amount, when I catch the bull at the horn as bullishness resume.
So, it is okay to lose in a bear. Everyone loses. Pray that a new bull come or what we say a "silver lightning will always come after every thunderstorm" and you will make back 5 to 10 times your initial money due to the multiplier effect of catching the bull at the horn, but you must make sure that you must be willing to learn and improve yourself .
"You cannot break good principles, but you can break yourself going against the good principle." - Jesse Livermore sums it best.
Comments:
A Jewish book on stock-pick in the 1800s always say "Never answer a margin-call, admit your mistakes and close it."
Good Luck! Amigo!
Yours Sincerely,
Dr Lion.
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