For many ordinary retail investors, their professional knowledge and resilience are not enough to support leveraged stock trading. In other words, don't compare your hobbies with other people's majors, or ordinary retail investors will lose miserably. Retail investors themselves are at a disadvantage in the capital market, and at the same time they do not have relatively professional investment ability. Even without leverage, many retail investors are still in a state of loss, let alone leveraged stock trading.

I personally don't recommend leveraged stock trading.

For those retail investors who want to get rich overnight through leveraged stock trading, such behavior will not only amplify their investment risks, but also seriously affect their investment mentality. Some people may expect to get rich in a short time. Although their ideas are good, they often make mistakes in actual operation. When a person adds leverage, the probability of a person making mistakes will further increase, and the losses caused by mistakes will be multiplied.

Second, the current way to increase leverage is mainly off-site fund-raising.

Let me just give you an example. If a person has only 50,000 principal, he wants to invest in stocks by adding leverage, and then he wants to get excess returns. Some people will borrow money or credit cards to refinance 50,000 principal. In this way, they will reach the goal of 6,543.8+10,000 principal, which is double leverage. In the case of profitability, leverage will amplify profitability. But in the case of loss, leverage will further amplify your loss.

Third, the professional ability of retail investors is prone to large losses.

As I said above, the discipline and trading ability of ordinary retail investors are not so strong. Even a professional trader, the winning rate of this trader may not be above 50%, let alone ordinary retail investors. Retail investors are risky and need strong discipline. If retail investors buy stocks through leverage, the risk of stock trading will be further increased, and even large losses may occur.