It makes sense to use leverage only if you live in a country where they tax your unrealized gains. Then It wouldn't make any sense to buy&hold and let the compounding do the heavy lifting. In those shitty countries, they force your hand to do risky leveraged trades so the game shifts from buy&hodl to yolo. You either make a life changing money from one lucky bet or you keep wage slaving. That's why people make leveraged bets whenever they are able to because they think one of these days they'll get lucky and hit the jackpot. If they wait, the gov will steal their money from them. Makes sense. If the capital gains taxes are reasonable and they don't tax your unrealized gains then it doesn't make sense to play with leverage unless you are a degenerate gambler. I understand what you are trying to say here, but it makes no sense to get yourself in trouble by using high leverage just because of tax, knowing fully well that you are in charge of your margin, and if you lose everything in the process, the government wouldn't reimburse you for your losses, so too much high leverage makes no sense to me no matter what. It definitely makes more sense to stay away from leverage if you have another way to benefit from the compounding effect. Most people rather prefer to change their tax residency than yoloing their income on leveraged bets. Not everyone has that option though. Some people are stuck in those shitty countries that tax unrealized gains and they have no other choice than to go big or go home. Soon the Netherlands will also join that shitty countries club since they recently passed the law on taxation of unrealized gains. It is becoming hard to follow the steps of good old warren b.
It makes sense to use leverage only if you live in a country where they tax your unrealized gains. Then It wouldn't make any sense to buy&hold and let the compounding do the heavy lifting. In those shitty countries, they force your hand to do risky leveraged trades so the game shifts from buy&hodl to yolo. You either make a life changing money from one lucky bet or you keep wage slaving. That's why people make leveraged bets whenever they are able to because they think one of these days they'll get lucky and hit the jackpot. If they wait, the gov will steal their money from them. Makes sense. If the capital gains taxes are reasonable and they don't tax your unrealized gains then it doesn't make sense to play with leverage unless you are a degenerate gambler. I understand what you are trying to say here, but it makes no sense to get yourself in trouble by using high leverage just because of tax, knowing fully well that you are in charge of your margin, and if you lose everything in the process, the government wouldn't reimburse you for your losses, so too much high leverage makes no sense to me no matter what. It definitely makes more sense to stay away from leverage if you have another way to benefit from the compounding effect. Most people rather prefer to change their tax residency than yoloing their income on leveraged bets. Not everyone has that option though. Some people are stuck in those shitty countries that tax unrealized gains and they have no other choice than to go big or go home. Soon the Netherlands will also join that shitty countries club since they recently passed the law on taxation of unrealized gains. It is becoming hard to follow the steps of good old warren b.

It makes sense to use leverage only if you live in a country where they tax your unrealized gains. Then It wouldn't make any sense to buy&hold and let the compounding do the heavy lifting. In those shitty countries, they force your hand to do risky leveraged trades so the game shifts from buy&hodl to yolo. You either make a life changing money from one lucky bet or you keep wage slaving. That's why people make leveraged bets whenever they are able to because they think one of these days they'll get lucky and hit the jackpot. If they wait, the gov will steal their money from them. Makes sense. If the capital gains taxes are reasonable and they don't tax your unrealized gains then it doesn't make sense to play with leverage unless you are a degenerate gambler. I understand what you are trying to say here, but it makes no sense to get yourself in trouble by using high leverage just because of tax, knowing fully well that you are in charge of your margin, and if you lose everything in the process, the government wouldn't reimburse you for your losses, so too much high leverage makes no sense to me no matter what. It definitely makes more sense to stay away from leverage if you have another way to benefit from the compounding effect. Most people rather prefer to change their tax residency than yoloing their income on leveraged bets. Not everyone has that option though. Some people are stuck in those shitty countries that tax unrealized gains and they have no other choice than to go big or go home. Soon the Netherlands will also join that shitty countries club since they recently passed the law on taxation of unrealized gains. It is becoming hard to follow the steps of good old warren b.

It makes sense to use leverage only if you live in a country where they tax your unrealized gains. Then It wouldn't make any sense to buy&hold and let the compounding do the heavy lifting. In those shitty countries, they force your hand to do risky leveraged trades so the game shifts from buy&hodl to yolo. You either make a life changing money from one lucky bet or you keep wage slaving. That's why people make leveraged bets whenever they are able to because they think one of these days they'll get lucky and hit the jackpot. If they wait, the gov will steal their money from them. Makes sense. If the capital gains taxes are reasonable and they don't tax your unrealized gains then it doesn't make sense to play with leverage unless you are a degenerate gambler. I understand what you are trying to say here, but it makes no sense to get yourself in trouble by using high leverage just because of tax, knowing fully well that you are in charge of your margin, and if you lose everything in the process, the government wouldn't reimburse you for your losses, so too much high leverage makes no sense to me no matter what. It definitely makes more sense to stay away from leverage if you have another way to benefit from the compounding effect. Most people rather prefer to change their tax residency than yoloing their income on leveraged bets. Not everyone has that option though. Some people are stuck in those shitty countries that tax unrealized gains and they have no other choice than to go big or go home. Soon the Netherlands will also join that shitty countries club since they recently passed the law on taxation of unrealized gains. It is becoming hard to follow the steps of good old warren b.