WSO Elite Modeling Package

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Comments (48)

Feb 2, 2016 - 9:38am

do NOT, I repeat, do NOT do this.

most personal loans require you to agree that you're not buying securities for it, as those loans are regulated under margin laws set by the feds.

why would you ever want to do this? if you're looking for investment experience, do a paper trading account, invest a little bit in a Roth IRA and trade stocks/ETFs, don't take out a loan to do it, you could at best make a few extra percent, at worst ruin your credit for decades.

if you don't have the money to invest without leverage, you shouldn't be in the market, period. there are better ways to make a buck.

Feb 9, 2016 - 11:17pm

NO. Just get a demo account. People will often tell you the best way to learn is if you have your skin in the game. That's horseshit - you need to go through the reading list and learn how to model before seriously trying your hand.

Feb 9, 2016 - 11:18pm

Is taking a loan to invest in stocks a good idea? (Originally Posted: 06/27/2014)

Hello good people. I need advise in regard to the above question. I work for an IB as a trader and recently took out a loan to be repaid at 6% per annum for 5 years. The market return in my stock market was 18.9% last year and I was thinking why not? Its a pretty big loan as its equivalent to 1 and a quarter times my current salary. Thoughts? Advice?

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300+ video lessons across 6 modeling courses taught by elite practitioners at the top investment banks and private equity funds -- Excel Modeling -- Financial Statement Modeling -- M&A Modeling -- LBO Modeling -- DCF and Valuation Modeling -- ALL INCLUDED + 2 Huge Bonuses.

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Feb 9, 2016 - 11:21pm

This may be the dumbest thing I've heard yet on this site if it isn't a troll post.

Array
Feb 9, 2016 - 11:23pm

I think you asking a board of anonymous posters for advice about this decision -- really says it all.

Feb 9, 2016 - 11:24pm

When exacty did you work as a trader? The S&P returned 32.4% in 2013 and 15.8% in 2012. Not exactly rocket science obtaining a large return in those 2 years, so your 18.9% could have ocurred in a flux that may tower over returns in future years. I'm in no way saying that you only make money based off if the markets are up or not, there are derivatives or even just the basic ability to short and a plethorea of other ways, I am saying that I hope you didn't get too into yourself, assume you are god for making about a 20% return in a market upswing, and highly leverage yourself in the hopes of making more.

Feb 9, 2016 - 11:28pm

Took out a mortgage on my house when rates were ~3%, locked that in and threw the $250k in the market a few years ago. This is a good idea if you can get a good rate, but 6% (when the average return is ~6% year) is not smart, especially at all time highs.

Array
Feb 9, 2016 - 11:39pm

I literally don't see a single flaw in this plan. Don't listen to some of these naysayers who are clearly acting jelly. Just make sure to keep us posted on your home run count.

Under my tutelage, you will grow from boys to men. From men into gladiators. And from gladiators into SWANSONS.
  • 2
Feb 9, 2016 - 11:46pm

Flake agreed with you, you must be doing things right.

The answer to your question is 1) network 2) get involved 3) beef up your resume 4) repeat -happypantsmcgee

WSO is not your personal search function.

Feb 9, 2016 - 11:48pm

I suggest you take the loan than fully utilize a margin account from your broker. Only buy leveraged ETFs too. You'll either make a killing or be killed. Seems worth the risk to me...

Buy fear, sell cheer
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