| Quote: | |  | |
| Not a good piece of advice IMHO. If things go south you get a margin call and it's game over.
I'd rather listen to Buffett:
“My partner Charlie Munger says there are only three ways a smart person can go broke: liquor, ladies, and leverage. Now the truth is – the first two he just added because they started with L – it’s leverage.” | |
| | |
I agree that leverage should be avoided, but borrowing at ~2% on IB margin is preferable to 20% on a credit card. And I'm talking about small amounts just to tide you over to the next payday that are unlikely to trigger a margin call.