Kudos for some remarkable feat. You are right. Leverage is key to making big money. It’s also a way to lose lots of money. It’s essentially a gamble with both unlimited downside and upside.
Zerodha recently published a study that said 99% of traders lose money, leverage being the main culprit. I know someone who made lots of money with leverage and lost most of it again due to leverage (by sheer habit of gambling).
So hats off to you for your talent, gift of timing and risk taking. You are among 1 percenter in the market.
Also with that talent you can always find stocks that can give similar returns without risk of leverage. There are plenty of stocks, mostly penny, which invested would have given you better returns without having to wait for a black swan event like covid.
Take Waaree Renewable Energy. Stock was 10 apiece in April 2021. Today it’s 1400. If you put your 3 lakhs in this stock you would have made by now.
Strategy you have highlighted here and below (taking large bets, picking good businesses in hated zone) is nothing new and yours truly and many investors I know follow that. But none of have done what you have been able to achieve.
So congratulations once again and all the best.
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