Take a Loan to Trade?
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Thread: Take a Loan to Trade?

  1. #1

    Take a Loan to Trade?

    Could it be advisable to take out a loan and use that money to produce risky trading places in the Forex market?

  2. #2
    Quote Originally Posted by ;
    to people who think I'm stupid for taking a loan out. .

    Its only ironic since they over leverage with borrowed cash in FX

    and margin traders do the like


    that was mainly my point but I see my sign earlier at it. . As will this post. . Be lost in the middle eventually

    Sorry your logic is way off.

    Traders dont owe anything to the broker when they blow up. They loose their own cash.

    When you choose financing and trade with it, if you blow that money or not, then you'll need to pay it back in full Interest.

    Regarding your original question, (given you have been earning money)

    Locating an investor that understands this company and its risk, trading his cash would be an ideal situation.

    On the other hand in the event that you only borrow the money from somebody who only wants his cash Interest again after 6 weeks, no matter what you do with the cash. This isn't a ridicules option straight off but its very tricky.

  3. #3
    Quote Originally Posted by ;
    Earning cash is loosing money. Period. Borrowing what you cannot afford to lose is money for mortals that are common.
    1

    This.

    The more variables which make it difficult to take a loss, the more likely you won't reduce a terrible transaction.

  4. #4
    1. Forex market don't need to much money since it has such a higher leverage.So when you've got the confidence?
    2. Debt you can't afford make you feel awful,then it will effect trading and your mood.
    3. You're not handling a company.even a corporation will bankruptcy in case you don't possess a steady earnings.

    So,NEVER.If you don't have cash for transaction,then find a job.

  5. #5
    I've never taken a loan for Forex trading, so I would never recomend you to go for the loan.

  6. #6
    Try borrowing the money from yourself. So what if it take s to put it. You just need $500 to $1,000 (in a mini acct) to prove to yourself that either you can trade well. . .or you can not. If you're able to trade and you are able to keep this up profitably for many months. . .you may draw on enough interest from friends and family to try and get in a larger amount. If you prove to yourself that you simply don't have any idea what you're doing and you've just a new way to lose money. . .at least it was your money. Nobody fails to ask for a payment of the funds, less where is the interest.

    Everyone can make a million on demo. When you put actual money on the line in a trade. . .and it's possible to imagine you're handing your broker $5 at a time. . .and it's disappearing for great...a whole new set of feelings will probably crop up that you never experienced while you're demo trading.

    Certainly something to Consider.

    Best,

    Eric.

  7. #7
    The key (of course ) is whether you can always make more than what you pay the bank in interest/fees. Then the answer is yes if you can. Most businesses use borrowed money. No different here. As soon as you've paid the loan back in its entirety that the cash is yours and you begin building up from there. One thing that I suggest is match the loan cash with your money. If you borrow $10,000 from a bank, include $10,000 of your money to get a total of $20,000. If you lose half stop trading and pay off the bank back it's money from your own half. Fantastic luck.

  8. #8
    To OP:

    NO! Extremely poor idea.
    Unless ur so talented that you're 100% sure you can do it.
    I quess making this treads replies to this already.

  9. #9
    To the first question - if you're a good trader you can exchange a small account up in a time so no need to borrow right?

    Seeing the quoted text below, I believe you're thinking white or black. Slog your guts out 9-5 or be somebody's bitch? No middle earth? No well paid jobs everywhere? If you can add value you will be compensated. However, work harder than others and you need to add more value.

    There's this expression I find very correct. If you pay peanuts, you will get monkeys. If you're not much more useful than a fighter then don't expect to get compensated more than peanuts it's also true the other way around.
    Don't get me wrong. I am not saying you don't deserve to get paid or you're unworthy. I am just trying to clarify there's more than these extremes: 9-5 captivity and being financed by somebody.
    But, it all depends on YOU and you alone. Great luck.
    Quote Originally Posted by ;
    It comes two fold. . file for bankruptcy. . Go find a sugar daddy and also become a little bitch

    otherwise your going to constantly be a 9-5 work your ass off to pay rent till the day daily with no option for starting your own business or getting a new vehicle

  10. #10
    Calling for a dissaster trading is 90% plogy imo if you cant afford to to eliminate the money it's gont be painfull and you probally gonna do dumb things. I readed a study many fail in trading and I was suprised by it it wasnt that most are wrong on management. More of emotions that they proceed ceases when in a loser or adding and before it reversed management they puked. What gave emotionial fruion. And when they they didnt added or take profits way to fast. What made the huge in comparison with the gains. Now I been through same things myself in histoty adding tolosers uncontrolled not cost averaging thats a different thing it's predefinied so I know this but from my expirience in case you trade for example cash you loaned you need to pay intrest etc (pressure). You need to make money so as a human you gonna make dumb mistakes and instead of trading your own method anything you gonna trade you will trade your p/l. If you havent that under control you gonna include fuell to the fire using a loan and it's imo gonna call for a dissaster in trading along with the consicensius when you eliminate the cash after it will be more

    SO IMO A STUPID THING TO DO

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