Then one has to have large caps which will be perceived as strong, so one does not need to put in less compared to an equal amount.
Why would you do this when the market falls?
I think of leverage only because the market is trending and has a chance of going up even more, thereby if I take more trades or bigger trades, I will reap benefits sooner than later. But if the market falls, valuations go down, there will be a lot of opportunities valuation-wise, and if we buy, we may have to wait for long period to see any momentum, so the interest paid will be essentially lost.
I am looking at this purely from a shorter term trading perspective, and not from an investing perspective.
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