What kind of idiot trades on margin?

I think the best education is learning from some of you saps, personally.

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Using it for derivatives and major risk plays, that’s pretty fricking stupid.

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What? You mean nobody forces you to lever you leverage?

So what is the rule of thumb...never trade on margin what you're not able to replace with cash?

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What kind of idiot trades on margin?

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I guess me. I used to trade on margin all the time. Not any more. It's a tool.

Folks who trade frequently employ margin to avoid a reg t violations of free riding in a cash account.

same kind of idiots who buy expensive cars with loans. Why would anyone buy more car than needed with borrowed money? same goes for houses, vacations, on and on..."I've seen more people fail because of liquor and leverage—leverage being borrowed money. You really don't need leverage in this world much. If you're smart, you're going to make a lot of money without borrowing." warren buffett

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I used to trade on margin all the time.

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same here and I only did it with futures as i am sure you did also.

Borrowing for real estate is better because it normally appreciates in value but not always, as opposed to idiots borrowing for expensive cars which depreciate every single time. Leverage can work but it is risky not only due to the investment itself fluctuating but also factors can change such as loss of income or in the governments case loss of revenue.