Margin call selling

[jft310]

When investing in small caps stocks one should not use margin. Put your small cap stocks in a seperate account and do not use margin.

Its one thing to use margin in a large cap dividend payng account and another to use margin with small cap stocks.

I have a friend with margn calls starting today who loves margin. Its cheap he says only 1 percent. After the margin clerk sells him out again whats the real cost of that cheap 1

percent margin???

[sydbod]

The temptation is great jft. The main reason I don't do it is because we pay around 8% for the money in Australia.
For shares that are not "Blue Chip" I totally agree "When investing in small caps stocks one should not use margin. Put your small cap stocks in a seperate account and do not use margin."