Live Show: Stock Loans, Copy & Company Coins
Channel: Marc De Mesel
Date: 15/06/2019

Explaining why leverage and margin loan can be very interesting when investing in traditional markets like $TSLA stock. Also why I think Litecoin, Bitcoin BTC and Binance Coin are not good investments, but Bitcoin Cash and Ethereum are.

If u use leverage of say 2, and buy for example double as many TSLA shares as the cash you want to risk, borrowing the extra cash with a margin loan, does not mean you lost it all when it gets cut by 2, because your broker will automatically sell your shares as it goes down and you will not remain invested therefore with double as much. This way you always remain invested with some shares as it goes down, just less than without leverage, but can always lever back up if it goes up again and buy back those shares. As long as you don't close the position it seems you are never risking more than being unleveraged, but you do end making a lot more it it 10 folds.