The main reason I was stressed about these dips was the idea of a margin call. I truly believe that no matter how far down in value the assets I own go, that long term they will win. However, with leverage like this, it’s possible they’d dip enough that I get a margin call, and then the exchange would liquidate my assets to pay it and I’d lose either everything plus more, everything, or almost everything.
This morning I sold off enough stock and ETF that I don’t have a margin balance and I disabled margin from my account.
It’s going to be a slow ride down and up or up or down from here, but at least my portfolio value could literally drop 99% without me getting a margin call.
My stress is highly reduced.
Does anyone else have this kind of stress with margin or were you just smarter than me from the start and didn’t overuse it?
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