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Haha, what a tease. :p:


if you have a 50% loan, you are basically just adding a multiplier to all your trades/investments.


Hence, your gains are 2x (minus interest/loan), and your losses are 2x (minus interest/loan) - pretty basic stuff.


So the real question is.... is your system going to be profitable? or are you just going to throw money into the market and diversify like crazy?


It seems a case of putting the cart before the horse; once you can prove a profitable system - then you can adapt the leverage to it.

eg, if you system experienced a 20% loss at any given time... then if you leveraged up 5x 80%, you would of gone broke.


you probably think a system can only experience a 50% drawdown, but look at;

FlightCentre $28 -> $4

Suncorp $16 - $4

Babcock&Brown $25 - 0.10c


even Wesfarmers [didnt they release a profit increase?] $40 - $14


Just something to think about,


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