tag:blogger.com,1999:blog-17478547.post7949919282748059634..comments2024-03-27T20:17:30.597+08:00Comments on Growing your tree of prosperity: Letter to Batch 6 of Early Retirement Masterclass students.Christopher Ng Wai Chunghttp://www.blogger.com/profile/15534057160494859977noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-17478547.post-1644025808513604512019-08-21T11:40:54.580+08:002019-08-21T11:40:54.580+08:00OK thanks ... looks like many ways to skin the cat...OK thanks ... looks like many ways to skin the cat! 😃Unknownhttps://www.blogger.com/profile/02938450718690565242noreply@blogger.comtag:blogger.com,1999:blog-17478547.post-26910337364643011932019-08-21T09:50:29.441+08:002019-08-21T09:50:29.441+08:00Yes, every month, the best practice is to top up a...Yes, every month, the best practice is to top up a little bit of money to set the MAR to above 200%. On months when you get a dividend, there is generally no need to do so.<br /><br />So margin call yourself so that your broker does not need to.Christopher Ng Wai Chunghttps://www.blogger.com/profile/15534057160494859977noreply@blogger.comtag:blogger.com,1999:blog-17478547.post-56389596786839026002019-08-20T16:28:25.025+08:002019-08-20T16:28:25.025+08:00Err I don't understand ... multiplier of 2 is ...Err I don't understand ... multiplier of 2 is already margin ratio of 200%.<br /><br />With self-imposed threshold of 200%, that means a single cent of paper loss will be "margin call" already. I.e. every single dollar & cent of paper loss will require actual dollars & cents of topping up. 🤔<br /><br />Unless the multipliers used for students' portfolios are lower than 2 e.g. 1.3 or 1.4??Unknownhttps://www.blogger.com/profile/02938450718690565242noreply@blogger.comtag:blogger.com,1999:blog-17478547.post-62848043701101593212019-08-19T20:35:09.468+08:002019-08-19T20:35:09.468+08:00Yes, you are right. You need some balls to withsta...Yes, you are right. You need some balls to withstand a 30% loss at a multiplier of 2.<br /><br />All my strategies are expected to lose less than 15% a year when a 3-sigma event occurs. They also generate a dividend cash-flow that can used to support a margin call. My students are taught to treat a dip below a margin account ratio of 200% as margin call and reinforce their account with earned income.<br /><br /><br /><br />Christopher Ng Wai Chunghttps://www.blogger.com/profile/15534057160494859977noreply@blogger.comtag:blogger.com,1999:blog-17478547.post-22283754852363706822019-08-19T08:22:12.093+08:002019-08-19T08:22:12.093+08:00Yup usually the best times to invest are when you ...Yup usually the best times to invest are when you feel worst. :P<br /><br />Another confirmation that reno often don't increase value of homes, especially general typical homes. A simple fresh coat of light neutral colour is best bang for buck, followed by bathroom reno if yours are in yucky condition. :)<br /><br />"equity multiplier of 2" -- isn't that quite high? Likely face margin call if portfolio drops beyond 30%...Unknownhttps://www.blogger.com/profile/02938450718690565242noreply@blogger.com