Ive noticed a lack of discussion around margin lend and stock selection on this site.
Im interested in
1.how do others filter their stock selection with a margin account. (Do you take into account stock beta) Does it really make a difference. Or matter ?
2.why do others on the the University of Youtube consider a margin call something horrid. Its a lenders financial position decision, nothing to do with the investors portfolio management, if I want some shares sold and the markets dropping and the brokers going to sell for me then thats fine. (Even better with IB as they allow me to nominate which get sacrificed first).
3.If your absolutely mad (as us marginers are often told we are) and want to determine some bizarre figure that represents a distance from possible margin call to current portfolio position how would you calculate it.
how about the ATR (22 days * 5 times ) of each stock (weighted by portfolio weighting) * numbers of stocks /100 to arrive at a percentage. I would compare that to Maintenance Margin / Excess liquidity and see if this something to get excited about. (Note I rarely give a rats about Liquidation Value -its all about the debt ratios).
Please feel free to advise / tweak / emasculate as you wish to improve the lot of us quiet marginers .
