You should NEVER borrow money to buy shares! If you are having a margin account, I would suggest that you downgrade it to a cash account. The whole thing about margin account is that they may allow you to buy with only 15% cash, and the broker lends you the rest. So, when the share price drops, they raise the risk and reduce the requirement for equity. For some stocks, they may require 50%-70% ... They issue margin calls and you are closed out as you don't have the cash to deposit in. Some brokers don't even issue margin calls. They just terminate your positions and you lose money.
As long as you play only with your cash, it's very safe with bank shares. Bank shares are boring but the dividend is great and you can sleep. Just don't use a margin trading account! You will ALWAYS OVERPLAY when you get a margin account. It's human nature. We are all greedy.
I think it's a great chance now. I wait for 6 months for this opportunity to. As I sell put options, I will buy WBC at 2.5% - 4.1% discount from the current price. This does not happen often. The last time, I had the chance was when covid struck where I got in around $19 - $20 and made such a kill!
WBC Price at posting:
$23.13 Sentiment: None Disclosure: Held
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