of course why not leverage, but it's a personal thing like do you have the income stream to cover the mortgage.. bottom line is it's a one way bet... I just wrote a long one to explain it.
Trading is easy
- Thread starter dozu888
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of course why not leverage, but it's a personal thing like do you have the income stream to cover the mortgage.. bottom line is it's a one way bet... I just wrote a long one to explain it.
2018 was the scariest year since 2008 as there were 2 months (Feb and Dec) with 20%+ drawdowns...with a rally and lull in between (the S&P fully recovered and briefly breached 3000 before Dec.). It taught me some unfortunate lessons about using leverage to buy dips and sell options.
If you are leveraged then unless you got to have some really deep pockets or you can end up shaken being shaken out on a big correction.
I just prefer to trade both ways. Long and short as the market writes it’s story line. Beside from where I sit much more $$$ can be made trading both ways as the market scribbles it’s path than holding and only going in one direction. Hurst writes about the concept in his book. Another benefit. If I am wrong then I am nimble enough to double up or triple up and go in new direction.
I have my first, my second and now max out all my credit cards.
@dozu888 better be right or he has to pay my mortgage and credit card payments. He guaranteed it. 
What does a rocket surgeon do?
That's right. Only those who have the required skills and knowledge about this field, can succeed here. Rest, because of the risk, will gradually have a downfall, for sure.