Posted by john29 > 2013-07-10 00:27 | Report Abuse

yeaahh those who expertice bout this margin acc plz giv advice to us

Posted by kinghu > 2013-07-10 10:07 | Report Abuse

I am using some fund from margin account. I only use it to buy stock that pay a good dividend and must select solid companies. The interest is about BLR - 2% for me, so around 4.6%. Use it to buy some companies that pay 5% and above in dividend. I also use it to buy expensive counters such as Carlsberg, GAB, Bat etc, when the price is right for you, and when time to sell, don't sell all, keep some because the price is average down already. For ex. if you buy MBSB at 2.90 last time , sell 75% of the shrs at 3.13. It is optional how many you decided to keep. Now the average price for remaining shrs are only around 2.30. You dividend payout if 27% like last time 11.73% (2.30) and 9.31% (2.9) before tax. My borrowing is only 25 %. Can slowly accumulate more expensive shares little by little. But remember only buy good and solid companies, not for speculation but for investment. Only buy the one you are comfortable with. I buy only the following. MBSB, Carlsberg, GAB, BAT, Nestle, United Plantation, UMW, Maybank, PBB, LPI, CBIP, F&N, DLady, Panamy. Because I want the companies to be there when I wake up. Some stocks seem expensive but if you can average down the price, the dividend seem pretty good. Margin account fund if use wisely for good leverage, it will provide good return. This is how I use it so far. Hope you can share your idea.

Posted by Wong Ah Hong > 2013-07-11 12:55 | Report Abuse

Thanks for advise ...I also use up my margin a/c ,but not ready understand how to control.some pick up below 5 % dividend and some above 5 %.hope still under controlling.