How People Go Broke With Leverage

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  • Опубликовано: 28 авг 2024
  • Do you know what financial leverage is and how it works? Find out in our video.
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    In this Alux.com video we will be answering the following questions:
    What is financial leverage example?
    What is a good financial leverage?
    Why financial leverage is important?
    What are types of financial leverage?
    How does financial leverage work?
    Why does financial leverage differ between industries?
    How do you analyze financial leverage?
    Is higher or lower financial leverage better?
    What does high low financial leverage indicate?
    Is financial leverage good or bad?
    How can financial leverage be improved?
    When a company increases its degree of financial leverage?
    How can financial leverage be reduced?
    What is financial leverage VS operating leverage?
    What does low leverage mean?
    What do you mean by leveraging?
    How much leverage is in the stock market?
    How does leverage affect profit?
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Комментарии • 204

  • @bryanpascual3543
    @bryanpascual3543 2 года назад +29

    Don’t fall for get rich quick scheme. Building wealth takes discipline, persistence, and hard work. Also, self education is a big leverage.

    • @CarTastic-fv6eo
      @CarTastic-fv6eo 3 месяца назад

      I agree, also you have much more peace of mind if you only risk your money.

  • @isaacdube7650
    @isaacdube7650 2 года назад +26

    If you’re reading this , don’t worry we’ll make it future Billionaires 💸 !

    • @wandiswa4685
      @wandiswa4685 2 года назад +1

      🇿🇦 Dube elimthente

    • @mo81506
      @mo81506 2 года назад

      The journey towards building our beautiful country starts with us my brother💪🇿🇦

    • @isaacdube7650
      @isaacdube7650 2 года назад

      @@mo81506 from 🇧🇼 but same sentiments ! The whole African continent

  • @vergilmontiero2558
    @vergilmontiero2558 2 года назад +34

    It's something that's so simple that we take it for granted sometimes, but this video reminded me of it. Leverage isn't all sunshines and rainbows, bad things can happen. It pays to have a financial education.

  • @leonardwonderman3854
    @leonardwonderman3854 2 года назад +145

    Putting our time and effort in activities and investments that will yield a profitable return in the future is what we should be aiming for.

    • @kelvinl.3875
      @kelvinl.3875 2 года назад

      Very true

    • @kelvinl.3875
      @kelvinl.3875 2 года назад +1

      A great work demands a great sacrifice and who is not capable of a great sacrifice is not capable of a great work

    • @benildabituin1531
      @benildabituin1531 2 года назад

      Speaking of investment, I have been finding a tough time deciding between mutual funds, real estate, and crypto investment, anyone with ideas to help me with?

    • @colegaligger7072
      @colegaligger7072 2 года назад

      @@benildabituin1531 I'm into real estate investing.

    • @colegaligger7072
      @colegaligger7072 2 года назад +1

      Real estate investing lets people grow their net worth by amassing more and more properties. Its a good long term investment idea due to appreciation.

  • @siddhagupta4605
    @siddhagupta4605 2 года назад +25

    Ah yes, hanging out with my fellow billionaires, you're in the right place.

  • @ethanetwirelessvpn8180
    @ethanetwirelessvpn8180 2 года назад +30

    Lol 😂 normally I come here to learn how not to go broke 👀 the title...

  • @thecount_1957
    @thecount_1957 2 года назад +24

    "Leverage is a double edged-sword"~ A Wise Man.

  • @motivationbaychannel6891
    @motivationbaychannel6891 2 года назад +30

    To the person reading this, please do not let your current reality stop you from getting what you want. Remember we are only at the bottom because we are looking for a way to get back up. Implant positive self-image inside you and I promise you will one day get what you want.
    Cheers.
    When you give up, that's when it begins.

    • @FayeKu
      @FayeKu Год назад

      no, friend, the situation now is only "cyclical" due to the continuous injection of new money into the economy. Bankruptcy is a structural defect of our current money system. A universal basic income would help fix the money system.

  • @clararamirez8195
    @clararamirez8195 2 года назад +3

    Matthew 16:26
    For what is a man profited, if he shall gain the whole world, and lose his own soul? or what shall a man give in exchange for his soul?
    Matthew 19:23
    Then said Jesus unto his disciples, Verily I say unto you, That a rich man shall hardly enter into the kingdom of heaven.
    Matthew 6:19-21
    Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal: But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal: For where your treasure is, there will your heart be also.

  • @dcDOC19
    @dcDOC19 2 года назад +12

    A wise man once said: "Investing in the stock market should be like watching paint dry. If you want excitement, take $800 and fly to Vegas."
    That's my guiding principle with the stock market.

    • @jayc4715
      @jayc4715 2 года назад +1

      That was before shitcoins and meme stocks

    • @dougprobert5378
      @dougprobert5378 2 года назад

      @@jayc4715 I agree with you.

  • @muchiribantu3226
    @muchiribantu3226 2 года назад +5

    Three L's to poverty: ladies, liquor and leverage.
    ~Warren Buffet.

  • @affluence_arena
    @affluence_arena 2 года назад +4

    Thank you for this reminder!
    Building wealth is a gradual process.

  • @wpetersen1081
    @wpetersen1081 2 года назад +8

    Her Canadian Accent is Strong!! 💪

  • @NathalieLazo
    @NathalieLazo 2 года назад +6

    Phenomenal person reading this, surround yourself with people who are better and wealthier! Keeps you humble, teachable, and hungry. You become those with whom you surround yourself with! Birds of a feather flock together! You got this! 🌟
    I believe in you! Love - Nat ❤️

  • @elonmusk5411
    @elonmusk5411 2 года назад +10

    I come here to just avoid this Stupid Mistake 👍👍👍
    Thank you very much Alux
    I'll be Trillionaire Soon 🔥🔥🔥🙏🙏

  • @Spladoinkal
    @Spladoinkal 2 года назад +5

    Ok I don't understand the mindset behind using leverage when you have $20 billion already. You can make $1.6 billion a year on compound interest (on average) just by putting it into an index fund!

    • @katisop5991
      @katisop5991 2 года назад +1

      its probably similar to making first million, instead of the satisfaction you always pictured what you get it the opposite in great multiples.

  • @jamesmartin2648
    @jamesmartin2648 2 года назад +2

    I know am not suppose to post this here but the Crypto market is gradually moving towards something big and the price surge over the past few months is just the beginning of greater things to come. Trade well on demo but I think the real market is a bit difficult. You got any advice for someone that is fresh to crypto, Don't know where to start..

    • @brettdarcy2747
      @brettdarcy2747 2 года назад

      Starting early is the best way of getting ahead to build wealth, investing remains a priority. The stock market has plenty of opportunities to earn a decent payouts, with the right skills and proper understanding of how the market works.

  • @thomaswhite2609
    @thomaswhite2609 2 года назад +11

    Here is the best moment to use leverage : NEVER.
    If you don't understand why, stay away from exchanges, markets and casinos.
    You've been warned.

  • @tracydavis148
    @tracydavis148 2 года назад +3

    Poorly Leveraging is Always BAD , however , Wisdom with Skill , Gifts and Talents with Discipline , & Consistency with Divine Favor at the Root ? Makes for a Wonderful Way to Advance a Goal or a Dream , that Blesses Generations and Nations ! 💯🙏🏾 #In #The #Process

  • @PkFoodx
    @PkFoodx 2 года назад +1

    I am supporting you from Pakistan

  • @TruckingwithJReddick
    @TruckingwithJReddick 2 года назад +2

    You've got to be careful in these investing streets!!!!!

  • @Ranter-yi9zq
    @Ranter-yi9zq 2 года назад +2

    Some of us know who lost it all. His name is Wojack.

  • @0Lu.Lu0
    @0Lu.Lu0 2 года назад

    No offense taken, but I do not like when people tell me something is “difficult” or “complicated” or “confusing”, especially “extremely”: 1) I got too much Aries in my chart to let someone tell me how I will interpret or process the information mentally or emotionally; 2) there comes a time in every person’s life, given it all just is wtf it is, that we must decide what is our INDIVIDUAL definition of “wealthy”, pick a “Freedom Number” and GET TO IT-how difficult or whatever someone else found it all to be has no bearing upon, and is no reflection of MY intellectual capability let alone capacity. “Hard”, “Difficult”, “Complicated”, etc. all of that, ultimately, is IRRELEVANT, you either gon study the shit or you’re not. Go on git mean wit it, cuz there WILL BE a fresh batch of billionaires in the next 5 years, and, whether we like it or not, the top sets the metric for those not all the way up there (the NON-INDIVIDUAL part of your “Freedom Number”).
    “…..You wanna be rich or what? You wanna die broke or live it up?”-Friendly Reminder, Young M.A.

  • @kwamebushman606
    @kwamebushman606 2 года назад +9

    Yeah I don't touch leverage and I don't touch margin, easiest way to get WRECKT 🤣

    • @Spladoinkal
      @Spladoinkal 2 года назад

      Leverage can definitely help increase wealth, for instance getting a home loan for a rental property, but you need to REALLY know what you're getting into before you use it (I realize the video was mostly talking about the stock market but I'm making an example).

    • @kwamebushman606
      @kwamebushman606 2 года назад

      @@Spladoinkal DON'T touch leverage/margin... you'll get wrecked

    • @Spladoinkal
      @Spladoinkal 2 года назад +1

      @@kwamebushman606 If everyone that touched leverage got wrecked, there'd be maybe 10% of the billionaires there are now. The only way you could become a billionaire is to pass on wealth from generation to generation until you've built up billions. Even if you came out with a world-class patent or something, you'd still need a loan to actually get the product on the market. See, leverage is everywhere, you just have to be smart about it: Not use too much leverage at once and make sure you are only using it in the right situations.

  • @katisop5991
    @katisop5991 2 года назад +2

    It could be worthwhile putting up with Math and Statistics before investing with leverage. It takes the guesswork out of optimised risk and leveraging. Going broke can always be prevented.

  • @lesegogavin7828
    @lesegogavin7828 2 года назад +1

    Honestly as a CFD trader, many people get into the financial market without understanding anything about the market. If you want to be a passive investor and hold a stock for a long time then it is better to buy the stock when the company or a security just listed on the market . You are guaranteed that you will make money .

  • @kopopdop
    @kopopdop 2 года назад +3

    Seeing this going 10x in a shit coin

  • @kingech_B15
    @kingech_B15 2 года назад +2

    Teaching gambling?

  • @abor3edcod5
    @abor3edcod5 2 года назад +3

    me watching this video while using full leverage on stocks 0-0

  • @robertdaws9995
    @robertdaws9995 2 года назад +2

    My worst investment word" leverage "

    • @mariavictoriasalita5273
      @mariavictoriasalita5273 2 года назад

      Are lever and leverage two different things or the same? Finances is quite confusing for me.

  • @MiamiMichelleable
    @MiamiMichelleable 2 года назад +2

    We can really learn from others mistakes.

  • @sicelomkhwanazi
    @sicelomkhwanazi 2 года назад +2

    Happy new year AluX ❤️❤️

  • @samb23692
    @samb23692 2 года назад +3

    This is the first time Alux criticized bitcoin. 😂

    • @user-cn7ys9bc2u
      @user-cn7ys9bc2u 2 года назад +1

      Perhaps alux has lost much money in investing Bitcoin.

    • @alux
      @alux  2 года назад +2

      Has nothing to do with bitcoin, we're still invested and investing.
      It has to do with people going 20x YOLO with their life savings because leverage is a thing.

  • @colinchandler6516
    @colinchandler6516 2 года назад +1

    thank you

  • @naeem9795
    @naeem9795 2 года назад +14

    There are three ways to go broke: 'liquor, ladies and leverage🤔🤔

    • @Edsel0201
      @Edsel0201 2 года назад +4

      Not needed to mention the fourth: GAMBLING!

    • @jayc4715
      @jayc4715 2 года назад +1

      And heroin

  • @elhar3761
    @elhar3761 2 года назад +2

    The banks just get their money back from the gov. no risk for banks 🤷‍♂️

  • @Simplup
    @Simplup 2 года назад +1

    Physics 101!

  • @Colby_00
    @Colby_00 2 года назад +2

    That’s why you buy gold first and then back your loan with the gold.

    • @ritasjourney
      @ritasjourney 2 года назад

      How much gold do you need in order to back your loan?

    • @Colby_00
      @Colby_00 2 года назад

      @@ritasjourney at least an ounce, but that’s pretty low

    • @jayc4715
      @jayc4715 2 года назад

      This didnt work..i took my gold cuban link and told my bank what you said..they said gtfo

    • @Colby_00
      @Colby_00 2 года назад

      @@jayc4715 shitty chain

    • @jayc4715
      @jayc4715 2 года назад

      @@Colby_00 nah its legit.. 180 grams 14k

  • @rethinkrich
    @rethinkrich 2 года назад +2

    Leverage is a two-edged sword!!

  • @KyrstOak
    @KyrstOak 2 года назад

    5:56 Why put sound effects here? It doesn't add anything to the video.

  • @Brownie8986
    @Brownie8986 2 года назад +1

    I'm sorry but if anybody is dumb enough to take out a second mortgage or bet their entire house value on one single crypto asset you're insane. This is a HYHR investment portfolio product, not the damn liquor store scratchoff or Vegas penny slots machine. Smdh. 🙄 And then have the audacity to blame Wall Street for YOUR greed.

  • @auro1986
    @auro1986 2 года назад +1

    archimedes was telling about lever in physics alux understood it as leverage and pulled not only a lever but everyone down to poverty

  • @ubongjoshua7186
    @ubongjoshua7186 2 года назад +7

    Leverage is a two edged sword😂😂

  • @superbaobao6830
    @superbaobao6830 2 года назад +1

    Leverage is good for 99.9% chance losing money plus debt

  • @ryugurena3327
    @ryugurena3327 2 года назад

    So are you saying that taking out a cash advance on my credit card, depositing it into my trading account, activating margin and going all in on 0dte options is a bad idea?

  • @nufrepusgnirbi
    @nufrepusgnirbi 2 года назад +1

    with 500 dollars i used 5x leverage for couple of tech stocks during a bull market one tanked and hit the stop loss made a couple of bucks. did it for learning experience. did it again lost it. haha

  • @AcesizOfficial
    @AcesizOfficial 2 года назад

    🙌🏽🙌🏽🙌🏽

  • @andre-nunes
    @andre-nunes 2 года назад +1

    Lots of scammers in the comments section. RUclips needs to do better.

  • @SharingFists
    @SharingFists 2 года назад +1

    Stop loss

  • @hugh009
    @hugh009 2 года назад +3

    Very informative especially info on derivatives which I had not understood. My Mom's investment club did very well and helped pay for my education with Coke, IBM, Comcast etc.

  • @MrRoyck10
    @MrRoyck10 2 года назад

    This over simplistic use of leverage can bite hard, borrowing money to invest to reduce risk of your own money is not sound for low level investors , at the higher end by professional investors this can work well with risk assessed and mitigated. Study the basics before borrowing money, understand your risk appetite, this is something that nobody can teach you as an investor, if you can’t afford to lose it then don’t invest as the market will go up and down according to historical data.

  • @deananderson7877
    @deananderson7877 2 года назад

    50% I’m in where do I sign?😀

  • @faisalrashid7794
    @faisalrashid7794 2 года назад

    If u are given two choices in life which one will you choose
    1 Poor and young
    2 rich and old

    • @ritasjourney
      @ritasjourney 2 года назад +2

      Poor and young, knowing what I know now

  • @williamrogers4917
    @williamrogers4917 2 года назад

    A simple version would be to use a credit card to buy goods. Then sell those goods at a higher price and use that to pay off the card. It is best to have some money store to pay off the card in case you don't sell enough.

  • @dudeshahs4282
    @dudeshahs4282 2 года назад

    Can you do a full video on depreciation with taxes

  • @julijakeit
    @julijakeit 2 года назад +1

    Greed is the biggest motivator and the worst adviser.

  • @UCjbfttZaGiVq3DF7wPO
    @UCjbfttZaGiVq3DF7wPO 2 года назад

    You could have talked about margin calls.

  • @caiusKeys
    @caiusKeys 2 года назад

    More interested on how to make a mil with leverage!

  • @user-cn7ys9bc2u
    @user-cn7ys9bc2u 2 года назад

    Could anyone tell me whether crypto is still worth to invest?

  • @andrewthompas9531
    @andrewthompas9531 2 года назад

    Im on path to leverage credit and cash. Small investments at a time! Took time to learn. 1k to 5k at a time play it safe and major opportunities will pop up will doing that. Good luck everyone!!!

  • @wanjirukarago9308
    @wanjirukarago9308 2 года назад

    Its normal once in awhile as long as you will stay in that situation for long.

  • @obiclark1027
    @obiclark1027 2 года назад

    Leveling up is the Leverage#Aluxer

  • @Artisticchaos
    @Artisticchaos 2 года назад +1

    Bruhhhhhh.....goinggggg brokee..

  • @jjwien8593
    @jjwien8593 2 года назад

    LunaChow will dwarf Shiba!

  • @KINGSTARFF69
    @KINGSTARFF69 2 года назад

    Don’t use leverage in crypto if you are new and don’t use high leverage
    Personal experience

  • @williamd7161
    @williamd7161 2 года назад

    In finance a lever often leads to disasters.

  • @jonathanbrotto7278
    @jonathanbrotto7278 2 года назад

    Longer the lever more points where it can break.

  • @nyaladzimajaha4293
    @nyaladzimajaha4293 2 года назад +1

    Let’s Go!! Here before 1K views.😂

  • @Manuel-gu9ls
    @Manuel-gu9ls 2 года назад

    Well people had a misuse it like incorrect use of tools 🛠

  • @raghavendrayadav5593
    @raghavendrayadav5593 2 года назад

    Give me a lever long enough and a fulcrum on which to place it, and I shall move the world 💯

  • @JSFGuy
    @JSFGuy 2 года назад

    Play..🎬

  • @vinceatumac
    @vinceatumac 2 года назад

    I prefer Ethereum than Bitcoin thu.

  • @ephraimudarbeiii5417
    @ephraimudarbeiii5417 2 года назад

    Wow, i am in the midst of borrowing from my 401k and credit card to invest in crypto lol too bad the market is rallying again before i can go in at cheaper prices yesterday

  • @surazsr4833
    @surazsr4833 2 года назад

    Yo!

  • @AnimojiGuy
    @AnimojiGuy 2 года назад

    #teamALUX

  • @jairunet
    @jairunet 2 года назад +2

    Everything was making total sense until the bitcoin loss? I am sure it's not just me, but I started investing in bitcoin back in Jan 2021, and although the price has been pretty volatile 20,000 USD to 69,000 USD then back to 43,000 USD today Jan 2022 it is super clear that there is no loss here, even with the price drop I am still in green. Alux needs to double check your analysis on this one.

    • @beccaashley-m.9949
      @beccaashley-m.9949 2 года назад +4

      Maybe someone used leverage to purchase bitcoin at the highest price and sold at a lower price...thereby losing?

  • @kartiersupremewhite330
    @kartiersupremewhite330 2 года назад

    Basically don’t gamble what you can’t afford to loose.

  • @colinchandler6516
    @colinchandler6516 2 года назад

    great video

  • @arjmobile5010
    @arjmobile5010 2 года назад

    TALK WITHOUT GAP UN HUMAN TALK LIKE MACHINE TALK CHANGE THE SPEAKER

  • @idfalnhouse
    @idfalnhouse 2 года назад

    Wow

  • @mohameduwaismohamedmirza7286
    @mohameduwaismohamedmirza7286 2 года назад

    👌👍🌞

  • @bb21again.67
    @bb21again.67 4 месяца назад

    Do a video on lucky people who invented in start-ups and won big.

  • @hfall667
    @hfall667 2 года назад

    Next video: How to Use Other People’s Money/How to Use Leverage

  • @SosaiOyama
    @SosaiOyama 2 года назад

    Leverage(Big Data) == “a good time”

  • @Opochtli
    @Opochtli 2 года назад

    SUP GUYS LOVE YOU GUYS HOPE YALL ARE WELL

  • @lesegogavin7828
    @lesegogavin7828 2 года назад

    That guy you used whom build a portfolio of 20 billion, honestly that guy was doing something of which he didn't know . It is just that this guy's have a lot of money and they hide behind such money and act as if they are experts but in reality they know nothing.

  • @TheresTyrannyAfoot
    @TheresTyrannyAfoot 2 года назад

    Lol....well I got Hella rich so....stop holding it and learn how to set stop losses....not that hard

  • @CMOVlogs
    @CMOVlogs 2 года назад +1

    Leverage is like a loaded gun, you can either hit the bullseye and score big or wind up tuning it up to your head to blow your brains out! lol

  • @hleniwefuneka7402
    @hleniwefuneka7402 Год назад

    It the beginning for me 🤣🤣🤣by the way you have a beautiful voice dear

  • @anandgupta44200
    @anandgupta44200 2 года назад

    Last year I clicked all Alux videos, and hoping of not clicking all videos this year!!!!!!!!!!

  • @fayyazi61
    @fayyazi61 2 года назад

    You must've definitely got funded about using library now using leverage in a real state is different than using leverage in the stock market here what's happens when you buy a stock you're using leverage it goes down some reason you get greedy you want to use more leverage is like a rat poison you just can't stop do you want to use more labor do you want to use more love you what happens then you lose everything and you can lose everything and go down to zero

  • @jackduane5555
    @jackduane5555 2 года назад

    "drived" 😅

  • @akhilsahuodishachhatisgarh3694
    @akhilsahuodishachhatisgarh3694 2 года назад

    🧡🤍💚🥰 from Akhil 👍🙏🇮🇳.

  • @goodbudz4259
    @goodbudz4259 2 года назад

    No extras at the end whaaa😂

  • @iamuniverse3154
    @iamuniverse3154 2 года назад

    Nice

  • @ToddDunning
    @ToddDunning 4 дня назад

    Clickbait AI garbage

  • @marcsensei7645
    @marcsensei7645 2 года назад

    1

  • @vixtorious
    @vixtorious 2 года назад

    First comment 🥰

  • @surazsr4833
    @surazsr4833 2 года назад

    I’m the first viewer!

  • @dominate101
    @dominate101 2 года назад

    First