LogFAQs > #951006707

red sox 777 posted...

With 50% Margin, 30% Maintenance Requirement (assuming that you have suddenly declined to the % loss point, and enough stocks are liquidated to bring you back within the 30% margin maintenance requirement):

% Loss | % Gain Needed to Recover
10% | 11%
15% | 18%
20% | 25%
25% | 33%
30% | 50%
35% | 100%
40% | 200%
45% | 500%
50% | Infiniti

Oof yeah, who needs that stress in their life. I'm with Cole here, I would only ever use substantial margin on blue chip stocks if they crash and get silly cheap again. And even then, not until the recovery has already started, because you're never going to perfectly buy the dip.

With the Fed pumping the market and the vaccines being distributed, who knows if we ever get a real crash like last time. I'm optimistic that we will so I can buy cheap, but who knows! Would crypto or Tesla imploding drag the whole market down for a while? I'm not sure. More likely scenario is some event we don't see coming. Some strain of Covid being worse than ever before or something. And it would probably just be a flash crash, so I'd ride it out if I was holding anything and average down.

I am getting somewhat paranoid that some of my under the radar stocks aren't as immune to a market crash as I thought they were after this last week though. Maybe only AVCT has true invulnerability.

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- Blur -
Welcome to your Divinity.