Using too much leverage is almost always fatal because of the path an asset takes to get to a certain price. If you don't know their path day to day, you will get your margin call and you will be wiped out. It's this whole idea of shortum volatility being converted into longtom risk. And it's one of those things that just seems, i mean, all you need is arithmetic here. You don't even have to get above arithmetic to be able to figure this one out.
As Chamath Palihapitiya put it back in April 2021, 10-K Diver is “one of the best fintwit accounts on Twitter.” 10-K Diver loves breaking down complex financial topics and helping people understand them via engaging Twitter threads. You can follow 10-K Diver on Twitter at https://twitter.com/10kdiver and read all his threads at https://10kdiver.com/twitter-threads/ Show Notes:
- Curating aggressively
- Is there a long term plan?
- Reasoning from the first principles
- Volatility tax
- Do markets have a memory?
- Financial Independence, Retire Early (FIRE)
- Mental models for investing
- Premeditating
- Jim’s GIF game
- Is it a Lindy or a turkey?
- The ‘Money Concepts’ show
- Benefits and pitfalls of leverage
- What’s next for the 10-K diver?
Books Mentioned:
- Reminiscences of a Stock Operator; by Edwin Lefèvre
- Happy; by Derren Brown