You need to be able to grasp and analyze what company's share actually have value. You can't assess the value of a single company based on the entire economy at large. This is called throwing the baby out with the bath water.CCHIPSS wrote: ↑Oct 11th, 2018 11:53 am
You are going to use margin during a possible start of a bear market? Are you trying to invest, or are you trying to gamble your life savings away.
We don't know if this is going to be bear. But during every bear market, there are people that use margin and ended up bankrupt, losing their house and all their assets.
If you time it perfectly, then of course you would win big. But it is funny that these are often the same people who yell at others for selling, asking "can you time the market"? Apparently those that sells early cannot time the market, but only those that uses margin to gamble everything away can time the market. (No offense to anyone of course. I am just saying we invest differently.)
I suggest this about investing: Taking a few punches is OK. But never take knockout blows.
This is what happened in 2008. As an example, everything was being sold down even good companies. You're getting too worked up about the market as a whole yet not letting yourself look at individual companies on their merit.
The use of leverage in itself is not risky. Borrowing money is risky if you cannot afford it. Similar to buying a home. Buying a home when home prices go down doesn't make it more risky. You are buying an asset you feel has value at the price you accept. This is the exact same thing people should do with stocks.
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