Leverage question

I know you’re looking out. Really appreciate you too.

Eh, it’s better to be rich than stupid.

Yes, but the sequence of returns matters. It’s not like you get to randomly roll a die. Once you blow up, it’s gone regardless of how much money you made beforehand. Just make sure to think about it rationally.

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But it’s better to be stupid rich!

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Yes, but it is better to be wealthy than to take unnecessary risks.

If I’m going to become a passive investor, I’m at least going to do it large.

True, but I believe being affluent is superior to foolish. Trading is like a cat sitting on a flyswatter. The flyswatter won’t bother the cat because it is soft and floppy relative to the cat. But, some other stuff could happen and it could be like trading.

You’ve lost me. But at the end of the day, I’ll never get ahead in life if I never take risks.

Ok, so put it like this. To understand daytrading you have to look at the word inself: “Daytrading.” Essentially, it is composed of two separate words - “dayt” and “rading.” What is the meaning of those words? That is an enigma, and that is why so is daytrading.

Did you know we’ve landed on the moon too?


Day trading is a funny game. I feel like the more you understand the markets, the less likely you are to try day trading. The worst combo is a relatively smart and educated person who believes he has an informational advantage and the know-how but in reality is just a sitting duck and just ends up being a liquidity provider.

Before even thinking about day trading, you should be able to answer the question “what skill/information/outlook I possess that the guy next to me doesn’t?” Unless you have a pretty clear cut answer to that question, you’re better off buying a lottery ticket.

Better off getting your leverage via etfs and riding long and strong :joy:

You guys really gotta get in on this. You’re missing out.

You’re with Edward Jones now?

I’m with a Tamp.

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you might be on to something :face_with_raised_eyebrow: :eye:

i dont think you need much skill to make mone off leverage. sometimes you jsut need the right product.
you lever when the cost to borrow is low and fixed. and the potential returns are stable and high.
real estate is an excellent vehicle to lever due to fixed nature of payments with low rates and the general appreciation of properties with the stability of the cash flow.
levering via etfs on the other hand is much more unpredictable. with margin, the costs are high. with futures, the cost is low, but the volatility of returns can also wipe you out.the amount of leverage you apply will be crucial. timing will be much more important as well. more room for error.

How do you think the etfs use leverage… I bet using SSO is safer than real estate leverage under a variety of definitions of risk. But keep rationalizing :joy: