Cụm từ này chỉ đơn giản có nghĩa là bạn không muốn để buộc tất cả các vốn của bạn để bạn không thể có được nó ra mà không có một mất mát lớn. Ví dụ, nếu bạn đầu tư vào trái phiếu 30 năm với tốc độ tương đối thấp, trái phiếu sẽ được giảm theo tỷ giá lên cao. | LEVERAGE AND THE REGULATORY ENVIRONMENT 165 The old saying is more profound than it might seem at first. In essence it means that investors should observe the cycles of the market and resist their emotional reactions investing in a contrary manner. So when most people are fearful it means the market is at or near a bottom and it is time to take the contrary step of buying stock at bargain prices. When most people are optimistic and buying stock as quickly as they can the contrary person begins selling shares recognizing the potential for a sudden turnaround. The idea of leverage usually shows up in rising markets. As prices reach their cyclical top more and more investors want to get in on the treasure hunt so they want to buy as many shares as they can. With their capital resources committed already one alternative is to commit those shares as collateral and borrow money to buy even more shares. Working through a brokerage account this activity buying on margin involves interest payments on the borrowed funds. That is not a problem as long as prices continue rising. In theory leverage makes perfect sense as long as the value of invested capital climbs. The trick is all in timing however. How do you know when the market is topping out The leveraged investor is continually at risk because prices could begin falling at any time. It often happens that significant paper profits evaporate more quickly than they appeared and leveraged capital is lost in an unexpected margin call. Investors attracted to leverage should also recognize the risks of that strategy. The more leverage the higher the risk. We have all seen illustrations of how the use of borrowed money can increase profits exponentially and on paper it all looks and sounds good. But fortunes have been lost in the market when the up trend ends and the down trend begins. Risks are always the greatest at market peaks and those are the times when optimism is most likely to blind investors to the pending change. Of .
