Thought of selling off all my shares to cover the investments in margin lending. What do I need to take into consideration?
I have roughly $168,000 invested, where $56,000 of it is my own cash. I have roughly $78,000 from margin lending investments. I know that’s a lot. My current profit is around $33,000 (59%). My total equity is roughly $86,000. All my profits are made within the past three weeks from 20% to 59%. It’s a very diverse portfolio with roughly 42 different stocks. It’s primarily invested in technology, followed by oil, construction, medical, and others.
I’m afraid that I may lose everything on my margin lending investment if there was a crash and my account would be liquidated to pay for the loan. I’m currently in the 22% tax bracket and thinking of accepting the loss to at least save my gains. I can use some losses from some stocks (-$9,000). I get the most I can offer is $3,000 right?
Any insight on this matter will help out a lot. I have never made such gains and especially in such heavy numbers when dealing with margin lending. I need someone who has gone through the same to give me an insight.