Sentences with phrase «financial leverage magnifies»

Not exact matches

The use of financial leverage can potentially magnify gains but also leave the trader with devastating losses.

Here's the bottom line: leveraged ETFs are a great tool for using a little bit of money to make a nice profit, but they can also sharply magnify a bad decision that can lead to great financial loss.

When you use financial leverage your mistakes are as just as magnified as your successes, and those mistakes can be big enough to make you a non-investor since you may have no longer have funds to invest.

Therefore, I don't see a real financial threat posed by Livermore's leverage — but, of course, it's prudent to note the impact of any decline in asset values would be accordingly magnified.

Since such use of financial leverage can potentially magnify gains but could also saddle the trader with devastating losses, leverage has the well - deserved reputation of being a double - edged sword.