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In truth, many GenZ investors are using leverage to boost their returns in stocks. Borrowing or taking on debt may seem risky to some but the potential return may be attractive if done strategically. The key question here is, should investors borrow money to invest in the market? There is no straightforward answer to that question. The decision to invest with borrowed money comes down to comparing the cost of borrowing versus the expected investment returns. Borrowing to invest means investors can deploy a considerable sum of capital either all at once or over a period of time. Using leverage has rewarded investors who bought into heavyweight growth stocks with strong fundamentals ...
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GenZ investors should certainly take advantage of their age and their increased ability to take on risk. Applying investing fundamentals early can help lead to a bigger portfolio later.
To avoid gambling, GenZ investors can focus on real solid companies with long-term upside. This could be as simple as buying index funds. Leverage is a double-edged sword. Thus, use it only in moderation, or not at all if you don’t have a huge stomach for risk.
As much as leveraging to invest can bring about potentially higher returns, it can be very risky.
Proceed with caution.
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To avoid gambling, GenZ investors can focus on real solid companies with long-term upside. This could be as simple as buying index funds. Leverage is a double-edged sword. Thus, use it only in moderation, or not at all if you don’t have a huge stomach for risk.
As much as leveraging to invest can bring about potentially higher returns, it can be very risky.
Proceed with caution.
...
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Debt is the causes hyperinflation and is the reason currencies fail. The structure of government has taught its societies the worse money structure possible. In the US it all started because of the Great Depression. It has been downhill ever since giving the people the idea debt is ok because you can just kick the can down the road further. The Generation that runs out of road is going to be in for a big wake up call because it’s going to a time when the most drastic of changes will be experienced. Very few take responsibility for their debt and instead of blaming themselves for bad choices, its society’s fault or the circumstances I was born into. Society has the “Its owed to me” complex when it’s really you’re a freeloader characteristic. You enjoyed the goods or the services so pay for them. Not paying your debt is stealing the most precious thing from someone- their Time. So remember stay away from debt or you may end up on the pole. ...
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The internet generation is having it good. It's a lot easier for the digitally savvy to make money compared to past generations. So, there's little justification for young people to borrow to invest in stocks, unless they are very sure that the ROI will be higher than the debt interest rate. In the case of stocks, it's almost impossible to predict.
The good news is, Gen Z or even Gen Alpha, have a much higher chance of accumulating wealth early. Start putting away part of your part-time job savings into equities.
Do your due diligence and learn how markets function. Reinvest your profits, keep the capital. Scale gradually as your earnings grow. Do not be greedy wanting to make a lot in little time. Have a plan and target for financial independence that will motivate you to be more vigilant and intelligent with your investment.
I'm still learning. Let's learn together, not with debt but with our savings! ...
The good news is, Gen Z or even Gen Alpha, have a much higher chance of accumulating wealth early. Start putting away part of your part-time job savings into equities.
Do your due diligence and learn how markets function. Reinvest your profits, keep the capital. Scale gradually as your earnings grow. Do not be greedy wanting to make a lot in little time. Have a plan and target for financial independence that will motivate you to be more vigilant and intelligent with your investment.
I'm still learning. Let's learn together, not with debt but with our savings! ...
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There are always two sides to a coin when it is being flipped. Likewise, with the principles of leveraging management. Perhaps an investor should abide to three golden rules if he potentially wish to venture into the “leveraging world”:-
1) An investor has to be shrewd and decisive. By being shrewd, he has to possess an analytical mindset to be able to make swift, wise decisions that favours him. Time and tide wait for no man. Hence procrastination is a “No, No” in leverage investment.
2) Borrow cash to invest only when he is absolutely positive that he is capable of a 100 percent return without losing his capital.
3) Bear in mind that leveraging is never a game for the “faint hearted”. By panicking and “crying wolves”, it may inevitably cause him to make an erroneous choice which can hurt him very badly.
In conclusion, with the help of the above three guidelines, an investor may deploy a modest sum of money in leverage investment and watch which side the tossed coin favours....
1) An investor has to be shrewd and decisive. By being shrewd, he has to possess an analytical mindset to be able to make swift, wise decisions that favours him. Time and tide wait for no man. Hence procrastination is a “No, No” in leverage investment.
2) Borrow cash to invest only when he is absolutely positive that he is capable of a 100 percent return without losing his capital.
3) Bear in mind that leveraging is never a game for the “faint hearted”. By panicking and “crying wolves”, it may inevitably cause him to make an erroneous choice which can hurt him very badly.
In conclusion, with the help of the above three guidelines, an investor may deploy a modest sum of money in leverage investment and watch which side the tossed coin favours....
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Investment and speculation are two different things. If you have enough capital and can take risks, then you can try boldly.
Rich people have money, investment is the icing on the cake.
Young people who have no money need to accumulate some principal and have enough knowledge, don’t act recklessly.
More information does not mean greater knowledge or more successful decisions
Today we have more information, but at the same time there are more opportunities to contact wrong information
In Conan Doyle's "Rigert Mystery", Sherlock Holmes said that the most important art of a detective is to distinguish from many clues which are coincidences and which are the key....
Rich people have money, investment is the icing on the cake.
Young people who have no money need to accumulate some principal and have enough knowledge, don’t act recklessly.
More information does not mean greater knowledge or more successful decisions
Today we have more information, but at the same time there are more opportunities to contact wrong information
In Conan Doyle's "Rigert Mystery", Sherlock Holmes said that the most important art of a detective is to distinguish from many clues which are coincidences and which are the key....
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You can borrow money, don't just borrow money, do more research, more theory, and more practice
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Please allow me to spell out the risks and rewards of leveraging investment before an investor decides to " adopt" this methodology in his investment journey. A survey in US showcased that their youths were more in favour of this form of trading. Can it be at this age, this group of people have more guts and zeal to accept the challenges of trading with borrowed capitals? On the other hand have they studied the downsides![]()
of leveraging management yet? If they have not, they wi...
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I heard from a trader once - leverage is neither good or bad, it's just a tool to wield. In the hands of a skilled trader, it's useful but vice versa, it may self-cut if one doesn't know how to use it. I think if one want to use leverage, just have to be careful and prepare comtingencies for the worst case scenario if the market suddenly tanks and you get hit with a margin call, can one cover it so one doesn't end up with all your positions liquidated?
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There are three kinds of money earned by investing, namely: money for time (growth), money for human nature (valuation), and money for cognition (professional)
Investment naturally requires costs. Think about how benefits are greater than costs. $Futu Holdings Ltd(FUTU.US$
Investment naturally requires costs. Think about how benefits are greater than costs. $Futu Holdings Ltd(FUTU.US$
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102089245 : Good advice to consider. Will bear that in mind.
Southern Eagle : Can win big or lose big when using leverage, as mentioned correctly that it's not for everyone.
Jeet Kune Do : Good advice
Syuee : Very insightful sharing.
102109868 : Agree . It depends . Leverage is a double edged sword
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