A few weeks back leading up to the market bottom, most stocks got 'sold' (or shorted) hard, down to ridiculous levels. I reckon it was a semi-coordinated plan by the sophisticated brokers to trigger as many margin calls as possible prior to the market bottom.
As such, I consider anyone who trades out of a CFD account, or on margin to be numismatically insane.
Do people not realize that some of these 'brokers' have sophisticated systems that know the position, stops, margin and buffers across all their clients on any stock. It is dead easy for these 'brokers' to destroy their clients when their system shows that throwing a few hundred k of shorts at a stock can trigger a massive and even better rolling margin dump which can result in huge profits for the brokerage, it's principles and it's VIP clients.
Yet I still see posters lauding these larcenous organizations and their 'recommendations' when they ought to be expunged from the collective financial conciousness of the modern world.
To take advice from some of these international banks is akin to asking a drug pusher for nutritional advice.
DYOR!
MCW Price at posting:
28.0¢ Sentiment: None Disclosure: Held
