Should You Trade on Margin?: NO - Financial Freedom, #21

Should you use margin to amplify your investment returns? No. Margin increases the chances of you losing big money, really fast. If you get a hot tip and don't have the cash, don't execute the trade. There are safer ways to increase returns, such as selling covered calls and cash-secured puts. You also can take a loan against your assets to diversify with a business or real estate.  There are many options to create a portfolio of cash-producing assets, just don't follow the hype of using margin.