Buying shares for borrowed money can lead to large profits quickly in relation to the capital deposit, but can also result in civil and economic disaster. About half of the capital you invest in shares financed with loans will lose the entire equity value of the shares you bought in half in value.
We recommend not to take out the mortgage
But will strongly emphasize the need for great caution and experience in the stock market to buy shares for borrowed money. In principle, the daily coverage of shares if fixed. Here, of course, it is always possible to get the cheapest possible loan and always have a clear strategy for how the money will be repaid.
When you borrow money for stock purchases, it will be like taking advantage of the so-called multiplier effect and having better equipment on your own to save money by investing. However, you must satisfy several requirements if you are eligible for debt relief. Among other things, you need a long time to try to get rid of your debt. Your debt must not have seemed irresponsible.
Knowledge is required to succeed in equity investments
Therefore, you should strive to stay as up to date as possible about the market. It is above all the companies you own shares in. Learn which events affect the company. Read and preliminary reports. Keep track of what is being reported about the companies and what the newspapers are writing. You can listen to the advice of experts, but always make your own decisions.
It is never wrong to listen to advice, not the stock exchange either. And there are many who give advice on stocks, in newspapers, banks, etc. Some advice is not as good as you discover over time. A large part of all the advice and recommendations is to buy a certain proportion of shares.