Source
Most people that are in the markets are quite aware of
the benefits and also the absolute disasters that buying
stocks on margin can cause. In a good and booming
market like we had several months ago, to buy on margin
gave you that extra little leverage and a chance to make
more on your money than before and then paying a small
interest cost.
But in the market crash of the last while, we’ve been
reminded how badly this can work against you. In a market
that falls as much as all of the markets have lately
and included every phase from finance to oil and gas to
mining to you-name-it, leverage works going up and for
the worst, going down. Two items of note here
click here for the whole .pdf report
the benefits and also the absolute disasters that buying
stocks on margin can cause. In a good and booming
market like we had several months ago, to buy on margin
gave you that extra little leverage and a chance to make
more on your money than before and then paying a small
interest cost.
But in the market crash of the last while, we’ve been
reminded how badly this can work against you. In a market
that falls as much as all of the markets have lately
and included every phase from finance to oil and gas to
mining to you-name-it, leverage works going up and for
the worst, going down. Two items of note here
click here for the whole .pdf report