commsec 40 lvr against mad, page-7

Jeddah,

I should clarify - the LVR I was talking about is actually for a CFD account I have which is inactive. I still buy and hold through this broker but with no leverage whatsoever.

CFD's (which essentially is the same as Margin Lending but with more leverage) can have a nasty bite!!.

I think you'll find most CFD providers will have very high leverage on stock such as MAD. Far too high if you ask me. These highly leveraged instruments (for going long and going short) have destroyed a lot of value in recent years. Throw in the crooks doing the high frequency trading and we have a nice cocktail of things that can send one broke pretty quickly if you're not on your game.

I think the only way I can beat the instos who regularly manipulate stocks to hit stop losses only to mop them up for themselves, is to buy, hold and keep the faith and then sell at a nice profit in the medium to long term. I've tried the other ways, and unless you can watch the screen all day every day, or have a bunch of very strict rules in place, it's easy to get caught out.

Good Luck.