short ban on german stocks, page-69

  1. 1,154 Posts.
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    Hi Rebel

    "Going long you are using youown money (or margin) to buy stock"

    Hedge funds don't use their money either.

    I think there is a contradiction in what you are saying. The very reason for prices crashing due to margin calls is because many long traders borrow money to trade.

    Don't use margin loans and shorters will have a lot less to aim at.

    A long trader/investor who never used a margin loan could be quite justifiably moralizing against irresponsible long margin-borrower traders (I would guess this is a massive proportion of all retail traders) who behave in a fiscally irresponsible way, and due to their risky borrowings, end up diminishing the value of shares including those held by more financially responsible investors.

    I really cannot see how you can see any trading strategy as morally inferior or superior.

 
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