PSA: Remember to NOT take excessive leverage during volatile times
The amount of money traders have borrowed to buy shares, is at $936 billions, up 40% from this time last year.
The scary thing about this is a domino effect, when a few accounts kena margin call and they are force to sell, that can cause the price to fall, which trigger even more margin call, which causes even more forced selling, and it goes on.
I have reduced my leverage to 0 by topping up my account with cash to support all the trades I made using leverage. So trade safe everyone![]()
https://www.barrons.com/articles/margin-debt-risk-stock-market-51638474035?tesla=y
$Tesla(TSLA.US$ $UP Fintech(TIGR.US$ $Futu Holdings Ltd(FUTU.US$ $Palantir(PLTR.US$ $Grab Holdings(GRAB.US$ $DiDi Global (Delisted)(DIDI.US$ $ACM Research(ACMR.US$ $ContextLogic(WISH.US$ $Discovery-A(DISCA.US$ $NIO Inc(NIO.US$
The scary thing about this is a domino effect, when a few accounts kena margin call and they are force to sell, that can cause the price to fall, which trigger even more margin call, which causes even more forced selling, and it goes on.
I have reduced my leverage to 0 by topping up my account with cash to support all the trades I made using leverage. So trade safe everyone
https://www.barrons.com/articles/margin-debt-risk-stock-market-51638474035?tesla=y
$Tesla(TSLA.US$ $UP Fintech(TIGR.US$ $Futu Holdings Ltd(FUTU.US$ $Palantir(PLTR.US$ $Grab Holdings(GRAB.US$ $DiDi Global (Delisted)(DIDI.US$ $ACM Research(ACMR.US$ $ContextLogic(WISH.US$ $Discovery-A(DISCA.US$ $NIO Inc(NIO.US$
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B_in_B : Yes risk mgt. Don't let them have chance to call you top up. Anyway Tiger can bound, even a dead cat can bound. Premkt!?
doctorpot1 OP B_in_B : yup yup![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
trade safe!
Bull Run B_in_B : See u also no confidence liao, many ppl scare this war as Russia got neuclear weapon, ng mi siao siao. Press one button only world war 3.
doctorpot1 OP Bull Run : yea. interesting period. one time good one give us all these problems. high inflation, high unemployment, potential recession, potential stagflation, pandemic that is not ending soon, war, potential world war.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
After all is over, I think those trader that survive will all become super smart trader liao, then the rest that didn't survive will just be broke hahahahaha