I have an ANZ Diversified Margin loan. One must hold a minimum...

I have an ANZ Diversified Margin loan.

One must hold a minimum of 4 approved stocks.

One receives 70% leverage on the approved stocks plus another 40% leverage on many speccies.

Thus leverage is 110%.

It has been awesome for me.

I started an ordinary margin loan 2 years ago and rarely used it. In June last year I held one approved stock, ZFX.

I phoned ANZ and advised I was going to sell ZFX and wished to end my margin loan.

Somehow they conned me into taking up the Diversified Margin loan and the rest is history.

Only got stung for about $25K of my $45K margin loan on AFG, AXQ and ABS.

I sold out of AFG and hopefully AXQ and ABS will recover.

Holds no interest for me anymore.

I was a strange experience.

I would never use my own money to buy blue-chips but was willing to use my margin loan!

Avoid blue chips and go for the multi-bagger.

Buy cheap. Get in at entry level and be patient.