I’ve been weighing the pros and cons of using leverage whether it’s margin trading, HELOCs, or other loans to boost my investments. On one hand, the potential for higher returns is tempting, especially in a strong market. On the other, the risks are obvious: amplified losses, interest costs, and the stress of debt.
For those who’ve gone this route, what’s your experience? Are there specific scenarios where leverage makes sense like low-interest environments or stable cash flow to cover payments? Or is it better to avoid it altogether unless you’re playing with “house money”? Curious to hear how others approach this balancing act.