Why do people think leverage is bad?

Fire at me. This forum’s so boring otherwise. Let’s have a debatable discussion.

It’s their shit in their own head

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Blunt response man, aprreciate it.

I’m a 100% leverage user since beginning. I believe they or anyone can’t handle leveraging because, they don’t know how to fight… pussies…

Not only high leverage but any leverage is dangerous. They can win for 99 days but that one fine morning when bank nifty skyrockets or crashes these leverage traders will lose big. Sometimes the mtm loss may exceed even the initial margin they had put.

Hence please stay away from leverage

When u have full amount buy the stock in cash and sleep peacefully. If still cannot come over trading addiction join a good brokerage firm or prop desk who have profit sharing model.

Remember trading is injurious to financial health

Recently a trader in Erode took his life due to loss in options trading. His name narasimhan.

And that 100th day may well be next week itself seeing below updates

https://www.cnbc.com/2020/10/01/stock-market-futures-open-to-close-news.html

Use it responsibly, you’ll be fine. I’ve lost big but not as big to lose my capital. Always have half the margin aside. I lost and gained the money next day using the same leverage.

Most important, do not carry overnight trades in options using leverage. That alone will erode your capital if there are any unprecedented events

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I have not met a single person who thinks leverage is bad. Where did you get his idea from?

Trading means leverage. So what the debate about?

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Then why everyday , so many institutions/prop firms/banks trade.

Is it not injurious to their financial heath?

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Its not bad, but risk should be calculated. I sometimes have to keep 50 orders pending, i cant keep that much capital in account so i use leverage, but per trade risk is calculated and known no surprises there

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That saying is for retail investors
When franklin fund manager commits mistakes and mismanages debt funds entire amfi goes to rescue.

But with we retail investors it is our hard earned money. Dont lose it by playing dice with saghuni.

No one has ever won playing dice with saguni. Whom we think are the counterparties to our trades?

@ksksat You are so negative in the forums always…

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@Avi_Garg told he wants hot debate in a boring forum. I am just helping him.
Nothing personal.

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But only for retail , why not institutions?

What do you mean goes to rescue? fund managers get their salary. They are regulated by sebi and laws.

So you are saying trading is gambling then? That means hundreds of finanacial institutions all over the world are gambling with OPM?

True the first part. but counterparties are bulls and bears , not retail vs institutions. How you explain illiquid markets where only institutions trade. And even if you consider retail .All the retail money combined will be peanuts compared to institutions.

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@trader_dude AMFI franklin fund manager nexus latest news

https://www.thehindubusinessline.com/markets/stock-markets/amfi-asks-sebi-to-stop-police-probe-against-franklin-templeton-officials/article32734425.ece

So @ksksat

What you are basically saying is that people should not trade or invest in MF?

Is my understanding correct?

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Not that. Big fund houses are backed up with brute power muscle power money power and organizational power. Hence no mistake is costly for them

But we retail investors are puttting our hard earned money and hence must take all precautions

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IIFL dealer and angel sub broker involved in front running . Scrip name equitas holding

Read complete order with network diagram

https://www.sebi.gov.in/enforcement/orders/oct-2020/interim-order-in-the-matter-of-front-running-by-employee-dealer-of-india-infoline-group-and-other-connected-entities-using-mule-accounts_47783.html