Posting this here as anywhere else online they'll shout 'Diversify! TSLA shouldn't be more than 5% of your portfolio! Sell! Bubble!'. With that out the way, a 100% TSLA portfolio with a Reg-T margin account has worked out fine (obviously with some risk). Because of recent action, I'm up enough that it'd take an insane (but not unprecedented with TSLA) move to lose all the gains, and an even worse one to get wiped out.
So if I were on the cusp of having access to a portfolio margin account, I just wanted to confirm that there is little benefit to such an account if you're not diversified. Has this been your experience? Sure, you can get 6:1 leverage and a lot of buying power with portfolio margin, with a large array of different holdings and options strategies.
But if I'm only interested in long TSLA stock, the margin would likely fall (close if not exactly) to 2:1 on most brokerages, correct? Because of the lack of diversification / "insane concentration" of a TSLA only portfolio?
Obviously I would not even want to be 6:1 in TSLA, because the volatility would surely be hell before any success. But I could see the benefit of a ~40% requirement vs. the usual 50%.
So if I were on the cusp of having access to a portfolio margin account, I just wanted to confirm that there is little benefit to such an account if you're not diversified. Has this been your experience? Sure, you can get 6:1 leverage and a lot of buying power with portfolio margin, with a large array of different holdings and options strategies.
But if I'm only interested in long TSLA stock, the margin would likely fall (close if not exactly) to 2:1 on most brokerages, correct? Because of the lack of diversification / "insane concentration" of a TSLA only portfolio?
Obviously I would not even want to be 6:1 in TSLA, because the volatility would surely be hell before any success. But I could see the benefit of a ~40% requirement vs. the usual 50%.
