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Investment tip : never use borrowed money

Submitted by indian on Thu, 2006-07-20 13:36. ::

Basic principle of investing is Invest the money that you can spare. Never invest borrowed money. 90% systems fail to make money in stock markets.

So, if you happened to borrow some moeny and invest same in stocks, but loose, then your problems get compounded.

Stocks don't provide you widfall of money so easily, its a slooooooowwwww process. You need to be informative, educated and also have some luck.

You may just be able to survive with a 5% loss initially, which is good, so don't just expect to start making profits the very first time.

And since there is higher certainity of loosing out, never, i repeat, never use borrowed money to invest in stocks.

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