"Even if your borrowings are small and your positions aren't immediately threatened by the plunging market, your mind may well become rattled by scary headlines and breathless commentary. And an unsettled mind will not make good decisions." - Warren Buffet
Read? 12 Years of Christmas and Two Lessons in Investing.
CW8888:
From his own personal experience in 2008/2009; you don't have to be in high leverage to feel threatened; your immediate fear of near term liquidity needs and unsettled mind will not make good decisions too.
BUT, the Truth... Market can turn faster than our self-denial
The moment we have accepted the truth and overcome our self-denial. It is often too late. Big negative returns are locked once we have liquidated our investment at market low or near market low
In Jan 2009, Uncle8888 finally realised the liquidity for expenses issue and accepted the "truth" that the daily bombardment of Great Depression 2.0 news might be real ......