The Pros And Cons On "Adopting" Leveraging Investment
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 downsidesof leveraging management yet? If they have not, they will be in for a rude SHOCK. It is a huge RISK because the monetary returns of their purchased stocks may not be "bullish". Bearing this in mind, they may not even be able to cope with the prospect of a hundred percent return of their loans. How🤣 it is for them to realise the harsh truth of Benjamin Franklin's adage " He that goes a borrowing goes a sorrowing". The plus side of leveraging investment is that it can be potentially very rewarding if an investor is shrewd and lucky enough to have targeted on some portions of "bullish shares".
In conclusion, an investor must weigh carefully his pros and cons before he takes on leveraging investment. One golden rule to remember is, an investor may consider leveraging investment if he has excess food 🍚🍣🍲 on the table and the spare💰💸to lavish on, because this form of trading is just an " extra layer of icing to a cake"for the wealthy.
In conclusion, an investor must weigh carefully his pros and cons before he takes on leveraging investment. One golden rule to remember is, an investor may consider leveraging investment if he has excess food 🍚🍣🍲 on the table and the spare💰💸to lavish on, because this form of trading is just an " extra layer of icing to a cake"for the wealthy.
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Syuee :
Spearhead : Think leverage investment as positive to adopt.
kats_ : golden rule!an investor may consider leveraging investment if he has excess food on the table and spare cash to lavish on, because this form of trading is just an " extra layer of icing to a cake" for the wealthy.
HuatLadyOP kats_: Thanks.
HuatLadyOP Syuee: Thank you.