87 Crash...Ah! I'd like to make a comment about gearing.On...

87 Crash...Ah! I'd like to make a comment about gearing.
On the way up these geared millions act like movie stars and Rocket ship captains ...."Onwards and upwards is the cry ..Am I not a clever Guy?"
However on the way down they shrug their shoulders and frown..and panic outwards to the door ...and have nothing where there was Balls before!!!
Very few investors use some of that gearing to build in some protection..it's all geared for a win...Gearing should always be used in a way that covers the borrowers Ass ...but as I said most cases are just driven by greed ..Borrowing for Stock market investment is done by many successful funds ...but all types of borrowing is dangerous ..its not your money Fred!!
Precautions must be taken!!!
Believe it or not lots of money has been lost in options ..selling put options near the top ...now that's the way to get huge premiums in ....and then get a destroyed portfolio!!!
If it's your own money and a great share you can take a 50% write back and hold for the rebound..or average down with your own money and generate even more on the rebound.
Borrowing on Margin is a dangerous activity without a proper risk strategy ..and that risk strategy is not cutting your position in time ..In a crash situation ....you will be very lucky to get out there will be big queues ahead of you bashing at the door and often share prices will open strongly "gapping down " and you've lost before you can get a share out!!!!
Yes I've seen it all...including the crying from grown men!!!
My last bit of advice ...don't gear up ..it's just a fools paradise!!!!
All the Best to All.