When investors borrow money, or buy on margin, they’re going for these types of gains. But the strategy is extremely risky because, while it magnifies your gains, it also magnifies losses.

Margin trading can also increase losses. For example, if a stock drops 20%, the investment value falls by $2,000 to $8,000, resulting in a 40% loss of the investor's initial capital. In some cases ...

A margin of safety ... recognizes its worth, only buying that stock when it is heavily discounted creates the potential for larger gains if and when the stock does approach, meet, or exceed ...

Margin trading allows investors to borrow money from a brokerage to increase buying power. While it offers the potential for larger returns, it also increases the risk of losses that can exceed ...