Have you ever used margin funds for stock trading? If you don't understand margin trading, please read the post: Force Sell in the Stock Market. Margin funds and force sell are related to each other. In essence, margin trading is debt funds from securities offices. You need to know that when you use debt funds when trading stocks, it is not wise. Even though the securities office has provided facilities for it. How come?
If you are trading until you are in debt, then that means: First, you have not been able to control yourself. Second, you have not been able to manage your funds for trading. The analogy in everyday life: if you want to buy daily necessities and you get into debt here and there, it means that there is something wrong with the way you manage your funds. Just like in the stock market. If you want to buy shares until you have to go into debt, then that means there is something wrong with your fund planning. Also read: Fund Planning for Stock Trading.
So, my advice if trading is not to go into debt. I myself was in debt and ended up being forced to sell because I was averaging down but using margin trading and the stock price went down again, just in time to repay the debt Read the post: Trader's Emotions: My Experience Gets a Force Sell. So, I couldn't help but swallow a loss at that time. From there, I began to understand that using margin funds was an unwise act. When buying shares, you must have a plan based on the ability of the funds you have, so there is no such thing as debt.
Maybe you want to understand more deeply how the margin trading mechanism is? Perhaps I have discussed this post in depth in the post: Force Sell in the Stock Market. However, you need to know that not all stocks you can use for margin trading. Then, what stocks can be traded using margin funds?
Again, it depends on the policies of each securities company. However, on average, securities companies provide conditions that the shares that you can buy using margin funds are stocks with liquid movements. Stocks such as fried stocks, sleeping stocks are certainly not allowed to use margin funds. The goal: to save customers from losses of course.
But again, I do not recommend you to use debt funds when trading. The use of debt funds shows that you do not have a good fund plan.
