I lost 18,000 in credit card debt using margin in the stock market, do I stay in with margin? or take the garunteede loss and switch to safe Investments?

My title is basically my question, seems the only way to climb out of the mess I am in is to use margin to get back up. I don't really know though if I can get back up. I need some real help...

Do you mean you went into debt to the tune of 18K on your credit card as a result of using margin in your trading account? If so, you must either be able to afford that kind of pounding or you are a risk taker par excellence.

Only you can decide if you want to stay with what seems like a losing plan. Margin by itself won't get you out of debt unless you are on the correct side of the market. Margin then lets you  double or triple your play and the rewards are commensurate.

On the other hand, if you are on the wrong side of the market, your losses can be huge. How long can you sustain these types of losses? That is really the only question you have to answer.

Sandalwood, I wasn't entirely sure what was meant either, but my guess would be that your interpretation is what dmcmaster07 meant.

I think you stated the realities quite well.

Sandalwood, I think I know what he meant.I am in the same position as him before. I'm using credit card to finance my margin accounts. When the market is up, I made tonnes of money which is not possible with using only my own money. As you dump in more money into your trading account. it gives you more trading limits which can be used to buy more shares.

However, when the market slumped, you have to pull out your shares fast or else you suffer great loses. Or you can pump in money to meet the margin calls. So here, you can withdraw cash advances from your credit card and dump the money into the margin account.

You will have paper loss sitting in your margin account. Only when you sell the shares at the current depressed prices, will you feel the actual loss. So the 18,000 "losses" on credit card is actually used to meet the shortfalls in the margin account. As he still haven't made any sell, he didn't feel the real loses in money.