I am pretty sure Stealth3PD's words of wisdom will age quite well... and the margin proponents on this thread may learn some costly lessons in the future ... statements like "understanding the terms, and to ensure the risk is appropriate" are the key words as to why margin should generally be avoided , recent times have been quite unbelievable in the equities markets and we have not had a "real" recession in over a decade (i don't count 2 month covid as recession) List of recessions in the United States - Wikipedia also the effects of a recession last a lot longer than the official contraction period.
; however , just as quickly as TSLA has exploded in a couple weeks the macro environment can collapse just a quickly without warning , and depending on the type of black swan event the downturn could last years ...
the only terms i need to understand for buy(with cash) and hold are in my control,
buy low , sell high , hold during black swan if nothing changed about the underlying is the way to manage your risk
margin calls are effectively out of your control :
"Just when you might want to buy more TSLA, you are forced to sell due to margin call ,"
not saying you wont make a profit using margin , that depends on a number of factors , I am saying your long term performance is not likely to be anywhere near the investor who buys and holds good quality stocks such as TSLA and of course continually does their homework on the company ...
