So many great responses here! I am going to read the options link right now. I have been considering getting into options, but have hesitated because I do not understand them enough. I did buy a precious metal mutual fund in March and sold it for a 25%, $2,000 profit 3 weeks ago – just before gold started to go down. I also pay cash for all of my cars:) Buying on the margin is exactly what is going on in the housing market and that is some great insight. A shame that the risk is misunderstood by most people though.