Opinion on investors risk themselves borrow money to invest in stock(s)
I am in Generation Y. I never borrow money for investment. This is a very high risk action for somebody who is still new in stock market. The reason behind this is whoever risk themselves by borrowing money from somewhere to invest, the person just follow stock trends or hype, especially those meme stocks.
There will never have ‘happy ending’ on this. If the stock fall, investors would not gain any cents from the market. This will end up with a (huge) debt, eventually. However, if the stock surge, the investor might not satisfy with the amount he/she gain. Let’s say the person is borrowing USD 10,000 and investing all USD 10,000 in share(s) and fortunately the stock(s) surge. Let’s say the gain amount is USD 1,000, and total will be USD 11,000. At least USD 10,000 is just a virtual amount due to this amount need to return it back ultimately. Hence, the actual amount would be USD 1,000 or lesser if deduct interest.
In conclusion, no that satisfaction, no sufficiency, no happy ending.
(Note: This would apply to certain people. Some people might not feel this way)
There will never have ‘happy ending’ on this. If the stock fall, investors would not gain any cents from the market. This will end up with a (huge) debt, eventually. However, if the stock surge, the investor might not satisfy with the amount he/she gain. Let’s say the person is borrowing USD 10,000 and investing all USD 10,000 in share(s) and fortunately the stock(s) surge. Let’s say the gain amount is USD 1,000, and total will be USD 11,000. At least USD 10,000 is just a virtual amount due to this amount need to return it back ultimately. Hence, the actual amount would be USD 1,000 or lesser if deduct interest.
In conclusion, no that satisfaction, no sufficiency, no happy ending.
(Note: This would apply to certain people. Some people might not feel this way)
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