This looks like it's going to turn out as a total loss for...

  1. 228 Posts.
    This looks like it's going to turn out as a total loss for you.

    You said if you lose your 10k stake, you'd be in trouble. You almost certainly WILL lose the money, so maybe you should reconsider.

    If you decide to go ahead, obviously margin loan is not the way to go since you stand to lose a lot more than the 10k stake you put up.

    If you want to make 10x, the most plausible way is in buying derivatives. If the stock jumps, you have high leverage. If not, your option will be worthless. In any case you can't lose more than your initial stake. There are many choices -- puts/calls far out of the money. Or options in a mining company on the hope of a drilling bonanza.

    The other way is a "basket case" company. Once the whole market has written them off, the returns can be dramatic if the company actually does manage to survive.

    Anyway, I'll say it once again. It looks like you're about to do your dough, and get carried out with empty pockets.
 
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