Margin facility

[hispy99]

Originally Posted by zainabusman

I hope u have taken out ur gains from Skye given its fall of late.

There is nothing wrong with margin but it is only for the astute investor. If u take a margin at 22% plus at least 3% brokers commission for both buy and sell, it means u must make 25% just to break even.

Another mistake people make is to buy too many stocks. For a margin facility it is best to buy 2 or 3 at most. For example if all u bought with ur margin was Skye bank, u will be in nice shape.

Beware of an over-concentrated portfolio, especially in a country where it is difficult to come across company specific information. Imagine holding 2 stocks equally and one of them being ENRON (believe it or not, ENRON was still rated a BUY by some analysts before the fall). Even Citigroup was rated a BUY when it was trading in the $50s or so just several months ago....now it's trading @ less than $19. All the research in the world might not help you sometimes, so you may be better off hediging your bets so that you may live to fight another day.

I do not like over-concentrated portfolios (yes, great upside, but very high volatility). I would suggest holding at least 4 stocks.

[ntom]

Originally Posted by Michael

Who is your contact person at Fidelity and how canone get in touch

paulinus or philip is the one in charge of margin in f u s l

[zainabusman]

Originally Posted by hispy99

Beware of an over-concentrated portfolio, especially in a country where it is difficult to come across company specific information. Imagine holding 2 stocks equally and one of them being ENRON (believe it or not, ENRON was still rated a BUY by some analysts before the fall). Even Citigroup was rated a BUY when it was trading in the $50s or so just several months ago....now it's trading @ less than $19. All the research in the world might not help you sometimes, so you may be better off hediging your bets so that you may live to fight another day.

I do not like over-concentrated portfolios (yes, great upside, but very high volatility). I would suggest holding at least 4 stocks.

Agree to some extent. But remember this is just for the purpose of trading in and out within a month. If a stop loss of 10% is strictly applied, the damage will be limited. I certainly will not advocate this for holding period over a month.

[emmanuel ewumi]

Originally Posted by billions

Pls why do u think 40% is certain on d 2 stocks....i do not doubt that the hv good fundamentals.

Have a 6 to 12 months target on these stocks,but if you get a 15% gain in the short term take profit and buy back at a lower price.

[solainvest]

Originally Posted by zainabusman

Agree to some extent. But remember this is just for the purpose of trading in and out within a month. If a stop loss of 10% is strictly applied, the damage will be limited. I certainly will not advocate this for holding period over a month.

What if you want to sell and there is no buyer when your stop loss limit has been reached? Your loss can get to 50% or more.

[zainabusman]

Originally Posted by solainvest

What if you want to sell and there is no buyer when your stop loss limit has been reached? Your loss can get to 50% or more.

True. Which is why u should only buy liquid companies and companies u can live with in case u cant exit.

[chokit]

Originally Posted by zainabusman

True. Which is why u should only buy liquid companies and companies u can live with in case u cant exit.

I will say the best solution not to be greedy in what ever you do.Hence a good exit and entry point should be set on these stocks to be able to profit.
Zain,you know how bad i feel over my margin accoun right now,I should have move before now,tood bad.Thanks anyway for your words.

[emmanuel ewumi]

Originally Posted by chokit

I will say the best solution not to be greedy in what ever you do.Hence a good exit and entry point should be set on these stocks to be able to profit.
Zain,you know how bad i feel over my margin accoun right now,I should have move before now,tood bad.Thanks anyway for your words.

Who packaged the facility for you,what stocks did you buy with.lt is always good to buy liquid stocks that are currently selling on discount.

[emmanuel ewumi]

[quote=ntom;26918]

Originally Posted by billions

Do u know of another bank giving margin facilities apart from FBN?

Thx.[/QUOTE FIDELITY BANK WILL GIVE YOU THROUGH FUSL AT ADEOLA HOPEWELL V I AND THEY TERMS IS OKAY

What are the terms of margin facilities given by FUSL.What is the minimum amount they can give,duration and mode of repayment.

[obinnaD]

..does anyone know how a nigerian living abroad can get a margin facility?...it appears fidelity has such but the numbers on the website aren't going through and they haven't responded to any emails either...

[zubychyle]

Originally Posted by obinnaD

..does anyone know how a nigerian living abroad can get a margin facility?...it appears fidelity has such but the numbers on the website aren't going through and they haven't responded to any emails either...

you can call fusl on 014627207, 012710819.
cheers.

[dannynoko]

Originally Posted by zubychyle

you can call fusl on 014627207, 012710819.
cheers.

Zubychyle-

Do you have to have account in operation with FSUL before you could get a facility even though is crazy right now to take one?

ObinnaD- how are you going to process this being that you are staying outside Niger?

[zubychyle]

Originally Posted by dannynoko

Zubychyle-

Do you have to have account in operation with FSUL before you could get a facility even though is crazy right now to take one?

ObinnaD- how are you going to process this being that you are staying outside Niger?

i think that should be the case, but call and make the necessary enquiries.

one can make money even when prices are going down though it's not applicable to our market since we neither short trade on stocks nor trade on indices.
cheers.

[dannynoko]

Originally Posted by zubychyle

i think that should be the case, but call and make the necessary enquiries.

one can make money even when prices are going down though it's not applicable to our market since we neither short trade on stocks nor trade on indices.
cheers.

Alright......maybe I should equally call and see if the number can go thro from my location. Is always difficult to get to this guys from outside the country. Most time you end up picking up tel phone bill for nothing. Thanks though!

[emmanuel ewumi]

Originally Posted by obinnaD

..does anyone know how a nigerian living abroad can get a margin facility?...it appears fidelity has such but the numbers on the website aren't going through and they haven't responded to any emails either...

Dont you think it will be better for you to access loan from your base at a lower rate for you to invest in the Nigerian market.

[XXCASH]

Come do you guys know something we don't. Talking about margin facility at this time sounds like you have the recipe for the return of the bulls
Well best of luck, but i wouldn't go near margin even if i was given at just 10% PA.