Talk to anyone who has lived to see (and survive) a bear market and allude to “leverage” and “margin.” Now watch them cringe. Trading on margin is a high-risk strategy that has been around for ages, helping seasoned veterans to multiply their profits and enticing rookies to empty their pockets in hopes of profits. While many are quick to draw parallels between margin trading and gambling at the blackjack table with borrowed money, the fact of the matter is that investing with margin is very common among professional money managers of all sizes; however, because it’s so risky, and there are countless horror stories in the news about rogue traders losing fortunes in minutes, merely hearing about it strikes a pessimistic tone among investors [see How To Take Profits And Cut Losses When Trading ETFs]. In reality, margin trading is an advanced concept that warrants a closer look from anyone looking [...] Click here to read the original article on ETFdb.com. Related Posts: Move Over VIX (VXX): A Better Way to Measure Volatility? IPO ETFs (FPX, IPO): A Better Way To Ride The Bull The 10 Worst ETF Trades of All Time What You Need To Know About ETF Liquidity FirstTrust Value Line Dividend Index Fund (FVD) Beating SPY’s 10-Year Return
Talk to anyone who has lived to see (and survive) a bear market and allude to “leverage” and “margin.” Now watch them cringe. Trading on margin is a high-risk strategy that has been around for ages, helping seasoned veterans to multiply their profits and enticing rookies to empty their pockets in hopes of profits. While many are quick to draw parallels between margin trading and gambling at the blackjack table with borrowed money, the fact of the matter is that investing with margin is very common among professional money managers of all sizes; however, because it’s so risky, and there are countless horror stories in the news about rogue traders losing fortunes in minutes, merely hearing about it strikes a pessimistic tone among investors [see How To Take Profits And Cut Losses When Trading ETFs]. In reality, margin trading is an advanced concept that warrants a closer look from anyone looking [...]
Click here to read the original article on ETFdb.com.
Related Posts:
