Read? Playing The Game of Leverage (4)
Do you want to become rich in investing?
If you really want to become rich in investing; then you have to do leverages to speed it up. With leverages, investors can make huge amounts of money if they get it right.
For example, let say an investor has $100K and wants to double his money to $200K. Practically by using his own money for investing, it will be very difficult for him to find an investment that will return 100%.
But, if he does 10:1 leverage by borrowing $1M to invest . Thing can be different as it may not be that difficult to find an investment that returns 10+% and grows his investment to $1.1M+. He then returns $1M + interests and made $100K. Now he has doubled his money to $200K.
If he can do few more rounds of 10:1 leverages successfully, he will become rich ......
