Who has ever tried to get a bank loan for trading?
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thread: Who has ever tried to get a bank loan for trading?

  1. #1
    Junior Member LeoRashel's Avatar
    3

    Who has ever tried to get a bank loan for trading?

    One of the most typical mistakes of those who begin trading is to do it with little funds (undercapitalized trader), besides not using a trading platform, a good experience on the markets along with also an appropriate money management.

    But after solved these points, there remains the problem of this little bit of funds (undercapitalization)

    To resolve it, an idea would be to ask for a bank loan.

    Has anyone ever done that?

    For those who responded Yes to poll, tell us your experience

  2. #2
    Junior Member LeoRashel's Avatar
    3
    Yes, i have considered OPM, Pamm Account.
    The challenge is that people did not trust the same trader within the long run.
    I attempt to explain: When your equity curve increases, all traders place their money on that trader.
    However, whenever the traders have the drawdown, the traders criticize the trader, take their money and they attempt another trader.
    They failed to considered that the drawdowns are ordinary, and there are intervals with little profit, but traders may not understanding this, then take their money and if they see that the equity curve returns to grow then restore the money on precisely the same trader.
    Doing so did not raise their earnings and make problem to trader.
    Among other things traders start looking for traders using 1000% monthly profit or yearly profit.

  3. #3
    Junior Member robert55's Avatar
    20
    Well the bank doesn't need to understand its for trading... better to gamble with someone else's money.

  4. #4
    Junior Member Afro78's Avatar
    1
    two points: 1/ You're consistently profitable on your trading: undercapitalization isn't an issue since your account will grow 2/ You are not yet profitable: your loan is going to be missing So eliminate borrowing money for trading...
    What if you're undercapitalized rather than consistent in profits but you feel with more funds you could improve the profits?

  5. #5
    quote What if you're undercapitalized rather than consistent in profits however, you really feel with more funds you could enhance the profits?
    What makes you a profitable trader is not your funding but your skills...

  6. #6
    Junior Member kikanovoa's Avatar
    2
    Two points: 1/ You're Always profitable in your trading: undercapitalization isn't a problem since your account will increase 2/ You are Not yet profitable: Your loan Will Probably be lost So Eliminate borrowing money for trading...
    There's a third Choice that if you are Really a profitable trader but the broker Cheated you or bankrupted (like Alpari UK) so you Have lost your Funds and profits, in this case getting a Single makes sense

  7. #7
    Junior Member stefys28's Avatar
    5
    ...I am going to read the rest of this thread (I am aware that it's only young...) a bit later.

    Back at the 90s I made the mistake of telling the bank that I needed the cash for'leveraged investment'. There ensued a to-ing and fro-ing in despatches and discussions, and that which in hindsight were a few dumb-ass questions asked of me by people whom I expected to know what they were referring to;. . .and to be frank my own naivety at the point was to have mentioned the word'leveraged'.

    Finally I said, you would lend me money to take a holiday, why will you not lend to me for some thing that should have at least some residual value in case it goes wrong; if you don't make up your mind within the upcoming few days the chance will pass and I won't wish to take the loan.

    That was the Argentinian currency crisis, and I had been getting into banking stocks. The local manager finally Ok'd the bargain, fortunately not too late, and I made about 80 percent over the subsequent 6 months.

  8. #8
    Junior Member stefys28's Avatar
    5
    Banker: So for what purpose do you prefer to acquire a loan from us. Me: I want to participate in Forex trading utilizing 50:1 leverage in order to gap commerce over the weekend. Banker: (silence) Me: What? Banker: (silent )

  9. #9
    Junior Member Jpf1984's Avatar
    1
    One of the most frequent mistakes of those who start trading is to do it using little capital (undercapitalized trader)
    Many people who began Foreign Exchange trading do not realized it is difficult to be profitable trading a little account. I'm not saying that a satisfactorily funded account will make you profitable but I think that it is a prerequisite to be profitable.

    You don't require a massive account to be profitable but you need an amount to enable you to use specific egies that's not feasible in the event the account is small.

  10. #10
    Junior Member pakttoler's Avatar
    1
    Have you ever learned about good debt and bad debt?
    If you smart enough you can Earn Money out of it

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