43% of retail investors are trading with leverage based on survey

Discussion in 'Wall St. News' started by Bugsy, Sep 10, 2020.

  1. Bugsy

    Bugsy

    https://finance.yahoo.com/news/43-o...e-trading-with-leverage-survey-172744302.html

    This can only end well.
    :banghead: :banghead: :banghead:
     
    Last edited: Sep 10, 2020
    Nobert likes this.
  2. Cuddles

    Cuddles

    can I wrap that into a "credit default swap (CDS)" though?[​IMG]
     
  3. Nobert

    Nobert

    Damn.

    43% doomed before the game begins.

    The best one i heard, was someone asking for a 1:3000 broker.
    Then someone asked for $150 investor... :D

    That's life i guess.
     
    Bugsy likes this.
  4. bone

    bone

    And yet there is a crackpot lawyer trolling the site who wants to sue in order to eliminate the minimum account equity rule for PDT margin accounts.
     
    Bugsy likes this.
  5. maxinger

    maxinger

    And 57% of retail investors are trading with zero leverage?
    That is not a wise move.
    Make the money work harder!
    Make the money work for you!

    Zero leverage doesn't mean lower risk.
    As long as your mind is not in order, nothing works.
     
    Tradex and ElectricSavant like this.
  6. SanMiguel

    SanMiguel

    Depends... maybe they are trading in tax free savings accounts where you can't use leverage.
     
  7. Tradex

    Tradex

    Excellent point. :thumbsup:

    That's what I have been trying to explain for the last 20 years to fellow traders all over the world.
     
  8. Bugsy

    Bugsy

    Not denying this. The problem is the vast majority of people who utilize leverage will not have the discipline to manage their risk. They won't use leverage to 'make money from other people's money'. They will use leverage in order to maximize the amount of money they could potentially make by maxing out any given trade, whether by an all in, a double down, or averaging down, all on a bad trade. And since 90+% will lose the money they are basically gambling with, leveraging has the potential to be catastrophic.

    For professionals, sure, make money work for you through risk management, solid system, solid trades. Most people do not full under this category though.
     
  9. destriero

    destriero


    Worst casting since "Margin Call" save for Bettany. He was excellent.
     
  10. Bugsy

    Bugsy

    How can you not like Christian Bale?

    [​IMG]
     
    #10     Sep 11, 2020