Replies to post #336661 on SPDR S&P 500 (SPY)

[Schneidku40]

But at the same time Robinhood getting sued now from the family of that trader who killed himself last year when he misunderstood his margin account. They’re saying “why did they let him take so much margin?” So what are they supposed to do? They’re getting sued for allowing margin and getting sued for not allowing margin.

[kahlua]

Yeah margin is a wonderful tool but many many investors do not respect it properly. In a mania it’s free money all around and almost every trade goes well. I am far more gun-shy than most with margin having been schooled many times by its shadow side but I do use it lately when risk reward setups are there, either on long or short side. I do understand some of the brokers tightening things down lately..it’s a bit nutty out there. As I said it reminds me a lot of 1999, the momentum and the next winner makes the lather rinse repeat cycle rather addictive until, of course, the music stops. I like CLVR a lot. I did not buy the latest dip. Ive got enough warrants already.