Summary

Leverage is a double edged sword that must be wielded carefully.

Overextending on leveraged positions can lead to massive portfolio destruction.

Wait for likely turning points and scale in slowly.

Waiting for an uptrend is the easiest and safest way to use leverage,  though has less profit potential, which might be just fine.

Consider risk first, then potential profits when investing.

I will start with the last point first today. I take for granted that people measure their own risk tolerance. As I am reminded over and over the past 25 years, that is not always true.

FOMO - fear of missing out - is very strong in at least half of investors. Remember what I talked about a few months ago with a new acronym, you should have FOGYAK instead - fear of getting your ass kicked. 

Now that we are in a significant stock market correction, and possibly headed into a bear market, we need a strategy for when things turn positive again -as they always do. Here are a few thoughts.

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