The Dangers of Leveraged Investing/Trading

In my journey of over time, I've made a lot of mistakes, but I've also learned a lot. And one of the most important things I've learned is that leveraged investing is dangerous – in fact, I lost over $100,000 (3 years of my corporate salary at the time) over 18 months doing exactly that.

I know there are a lot of people who think they can get rich quick by investing in stocks, but that's not usually the case. This is most likely due to movies such as Wall Street and The Wolf of Wall Street, which portray the stock market as a place where you can make a fortune overnight. It also doesn't help that there are many unscrupulous spruikers on the Internet nowadays, posing as 'gurus' that can teach you to get rich quick through stocks.

Sure, there are people who have been able to make a lot of money quickly by using leverage, but they're usually not able to do it consistently across different market conditions.

Leveraged stock investing and trading is VERY risky. You can make a lot of money quickly, but you can also lose a lot of money just as quickly. So if you're thinking about getting into the stock market, please learn and be aware of all the risks involved before making an informed decision on your chosen strategy.

This blog series was created to provide an objective view of leveraged investing. I'll be sharing not only the positives of leveraged investing and trading, but also the negatives involved (which most people overlook). My hope is that by the end of this series, you will have a better understanding of what leveraged investing and trading is, the risks involved, and how to potentially avoid some of the common pitfalls.

If you're just starting out in your investment journey, I urge you to take a slow and steady approach. There are no shortcuts to building wealth – it takes time, patience, and most importantly, discipline.

Please feel free to share this blog series with anyone you think might benefit from it.

ENJOYING THIS CONTENT?

CHECK OUT THE REST OF OUR INSIGHTS BLOG!