The problem with being a pessimist (your proverbial $0.02) is that if you are wrong, you miss out on the gains, and if you are right, it'll be hard to collect.
I'm a pessimist by nature, and I've learned this lesson the hard way. If it really does end badly, your $0.02 might be like the guy who shorted the German stock market right before WWII - there would be nobody with any money to pay off your short, and nowhere to go to collect it anyway.
(This is one reason that short-selling is so hard and there are so few that are good at it.)
That being said, if you're going to bet your $0.02, you might as well lever up because you're probably right. Darn - I just contradicted everything I just said. :)
The problem with being a pessimist (your proverbial $0.02) is that if you are wrong, you miss out on the gains, and if you are right, it'll be hard to collect.
I'm a pessimist by nature, and I've learned this lesson the hard way. If it really does end badly, your $0.02 might be like the guy who shorted the German stock market right before WWII - there would be nobody with any money to pay off your short, and nowhere to go to collect it anyway.
(This is one reason that short-selling is so hard and there are so few that are good at it.)
That being said, if you're going to bet your $0.02, you might as well lever up because you're probably right. Darn - I just contradicted everything I just said. :)