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06-06-2013, 12:09 PM
Simply put "leverage" is a double-edge sword. The higher the leverage the sharper the two edges. So many Wall Streets Instituitions used this sword to make them so rich until caught by their own over-leveraging and disappeared forever- The latest was of course the "Sub-Prime-Loan CDO" fiasco. And i believe it will just going to repeat because Wall Street can not exist without high leverage.
i still don't know how to use this sword. i would gladly learn from anyone who has been successful in dodging the unpleasant edge of this sword.
i still don't know how to use this sword. i would gladly learn from anyone who has been successful in dodging the unpleasant edge of this sword.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.