If we have great ability, is capital from bank loans safe for us to use trade?

Oilacris

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Quote from: Lorokan on August 18, 2020, 12:53:30 PM

Irrespective of how good a trader you are or your confidence level, borrowing to trade is not safe for your healthiness..
The more you worry about loan interest piling up, the more the pressure you get, which could force you to make the weird trade decisions is desperacy

Exactly and thats why its better to trade on the money that you current had which isnt a loan because you wont really be get pressured about interest or due dates since you know that you do only make use of your own money and if you lost then there are no responsibilities left behind.

Unlike when you do get some loan just for you to trade then you will surely have that pressure behind and as a human its really hard to neglect nor not to think of it.You would be minding that
you should profit so that you can repay on said loan.

In result? You would really be lost in track since you are forcing that each trade should be profitable.

SquallLeonhart

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Quote from: Lorokan on August 18, 2020, 12:53:30 PM

Irrespective of how good a trader you are or your confidence level, borrowing to trade is not safe for your healthiness..

But considering the fact, not all traders are same with respect to their skill set, I believe that for some traders it will be okay to go for loans for trading purposes without getting impact on their health level. But, personally I will not go for loans from my crypto trading because I'm not having any confident to make profits by having extra pressure because of loaned capital. I just want peace of mind so that I can focus on my technical analysis which must be the vital thing for making profits in trading.

Quote from: Lorokan on August 18, 2020, 12:53:30 PM

The more you worry about loan interest piling up, the more the pressure you get, which could force you to make the weird trade decisions is desperacy

This must be true because I have experienced this. Moreover, when we are calculating how much we need to make profits so that we can repay loan, then we will start feeling extra pressure to be dominating us which definitely not letting ourselves to think smart which must be more important thing for making profits.

The Sceptical Chymist

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Quote from: deisik on February 28, 2020, 01:27:04 PM

trading with one's own money is not the same as with the borrowed funds (read, someone else's money), while trading with 500 dollars is not the same as trading with 10x as much

No, it's definitely not the same and I think newbie traders who start off using leverage can and do get themselves into serious trouble by trading (gambling) with other people's money that they're paying interest on. I've never traded on margin and never intend to--and believe me, I understand that your potential profits can be much higher but I don't like the level of risk associated with it, nor do I like borrowing money.

And in general, even though I do think that bitcoin is going to head much higher in the next year or two, I would not recommend that anyone take out a bank loan or even buy it on margin on an exchange. That's just me, though. The crypto world is filled with individuals who have a much higher tolerance for risk than I do, so I wish all of the margin traders--and whoever else borrows money to buy crypto--the best of luck.

Lorokan

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Irrespective of how good a trader you are or your confidence level, borrowing to trade is not safe for your healthiness..
The more you worry about loan interest piling up, the more the pressure you get, which could force you to make the weird trade decisions is desperacy

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Quote from: semobo on May 30, 2020, 09:36:48 AM

When someone is capable of making profits then they should be already having lot of money to continue their trading activity so when someone borrowing money means they are still not yet successful so taking risk with loan money is not advisable.

I believe OP is talking about start-up capital here. It's the first cash you use in investing. If you don't have it how are you going to trade in the first place to prove you know your game? Saving on one's own will depend on if one has a job and engagements that bring in money. Otherwise, one won't be able to fund an account to start trading with. However, I won't advise anyone to get a loan from a bank to trade with. It's risky and can unsettle one once loss sets in.

The cure

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Yes,of course! Not every trader got that ability, then use it to earn more profit.You can borrow from banks, but make it sure that borrow only what you can pay for ,don't borrow much money that would make you hard to return. Much better if you have other source of income like job or any business for you to sustain your loan if ever you fail n your trading.

mersal

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If someone is using loan money for trading then they are forced to make short term profits to pay the monthly due which will make the trading more tough and can ruin your strategies as well so before using this money you need to be careful about your other sources of income, if you don't have any then don't do it.

BobBct

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It's a risk that is hard to accept. If i can give you an advice trade the amount you are comfortable with. Because one essential key in trading is being calm and if you trade raise that capital and worst case scenario you liquidate it. Then you would be buried on debt. Crypto market is so volatile that indicators sometimes is false. So if you plan to raise your capital, Just be careful and know what you are doing.

Tahsin Kabir Kollol

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I don't think it's the right decision to borrow money from a bank and trade in cryptocurrency. People are not above mistakes and no matter how good a trader is, he can make mistakes in business. Trading in cryptocurrency is always very risky even though it is more profitable. If someone is doing a wrong trade, he can lose his maximum asset. For example, those who bought Bitcoin at 20k USD have not reached their desired goal and have lost more than half assets so far. So the best way to make a profit is to trade patiently, not by taking a loan from a bank and trading with very optimism.

bearexin

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Quote from: Renampun on June 05, 2020, 02:06:06 PM

of course safe...
trading is a skill and prediction, you will quickly repay your loan if you have good trading skills, I have never heard of a bank loaner who made his loan be a capital for trading and made a huge profit, but I'm sure it's good to try if you have good trading skills.

No, that's quite risky. Although sometimes we need to do some things so that we can raise enough money to cover up the loan before the deadline comes. But in the case of your friend I really think it's unnecessary. First of all , he or she never requested for it and I believe they are doing fine already and are okay with the money they have, that's why they don't need that loan. Allow them to trade with the little money they have.

No matter how good they are, you can never be so sure, and I don't see anything wrong with the amount he's trading with. If you push him to take a loan from banks, if it doesn't work out tomorrow and they are unable to pay back, you're going to be at the center of it all. So better keep clear.

Mahanton

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Quote from: Renampun on June 05, 2020, 02:06:06 PM

of course safe...
trading is a skill and prediction, you will quickly repay your loan if you have good trading skills, I have never heard of a bank loaner who made his loan be a capital for trading and made a huge profit, but I'm sure it's good to try if you have good trading skills.

Safe? Its never been safe because you cant be sure that you will be on profits constantly same as said above by other members of this forum that theres no sureness if you can make money because this market is always been unpredictable where you wouldnt know on when to pump or when to crash if this is the only way for you to repay debts to bank of your loan then you should think twice.

Quote from: Mehedi72 on June 05, 2020, 01:38:12 PM

If he has good skills in trading, then it's okey to take little loan. But your friend refused your proposal, that was because he still doesn't think himself an expart trader, accident can be happened anytime. so his decision is right.let him practise more to gain more skill

Confidence on your own trading skills isnt bad but going to the point on where you do trust it up too much and taking big loans to fund your trading account then you should accept the risk behind it because once you've
failed then not only losing big amounts of money but you would also face up legal issues when you can able to repay your loan.Its better to borrow to someone (not banks or coops).

Renampun

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of course safe...
trading is a skill and prediction, you will quickly repay your loan if you have good trading skills, I have never heard of a bank loaner who made his loan be a capital for trading and made a huge profit, but I'm sure it's good to try if you have good trading skills.

Mehedi72

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If he has good skills in trading, then it's okey to take little loan. But your friend refused your proposal, that was because he still doesn't think himself an expart trader, accident can be happened anytime. so his decision is right.let him practise more to gain more skill

alquinte

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To be honest, you really need to trust yourself if you are going to take out a loan from a bank.
I wouldn't personally do it, just because if I was to fail I would be in trouble.

However, I'm not a skilled trader at all, if your friend really trusts his skills and know for a fact that he will make a profit, then why not?

Zackgeno96

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Quote from: yupi84crypto on February 27, 2020, 10:19:01 PM

I have a friend who has quite great trading skills, almost every trade he manages to make a profit. But I see he always uses capital
under $ 500.If in my opinion he should use a large capital of at least $ 5,000 to get greater profit. I suggest to him to borrow from
the bank as trading capital, but he refused with the reason too risky and insecure. I want the opinion of you members of this forum,
whether to use capital from bank loans unsecured and risky if used trading by traders who have good skills? even though in my opinion
safe as long as we can make a profit and smoothly repay loan installments to the bank.

As he is a good trader so he can easily make that much money by himself in a month or couple of months and it will not be a constant pressure on him to make money. But if he takes loan from the bank then he would have to give the bank a collateral of much greater value and if he looses or be unlucky in those trades then he have the risk of getting REKT and this is what I think his reason for not taking a loan for trading.
Also I think the same that taking a loan for trading is just the same as taking a loan for gambling where there is always a high probability of you loosing all your money which is pretty bad situation if that money was borrowed.

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Quote from: Wafilian on May 30, 2020, 02:59:15 PM

No matter how good a trader he is! In my opinion, it is not better to pay with a loan from a bank or anywhere, Stock, forex, or crypto trading where you are not 100% safe because technically you are right but many times there are many upheavals in the market due to fundamentals. There is still time, so think carefully about whether investing in a loan is the right decision.

You are on point buddy, a lot of traders do forget the part where veteran traders do advice everyone to trade with either a spare cash or the cash you can afford to lose due to high volatility of trading markets be it crypto, forex or stock. A cash obtain through loan is never a spare cash or a cash anyone can afford to lose so why take loan to start crypto trading? What if the market go against you? I've seen a lot of successful traders who started with literally nothing other than some few airdrops and bounty campaigns. I know airdrop and bounties ain't paying like before again but there still few that turns up once in a while. I against taking loan to start crypto trading

Negotiation

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I think it is safe to trade with loans from banks if we have great ability It will all depend on our business If the business is good then it is better to take loans. By doing business we will be able to repay the loan very easily, there will be no problem and we will earn profit from both sides But if you don't have enough capital and the business is not good then there are many risks in taking a loan. The amount of damage will be higher here.

Wafilian

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No matter how good a trader he is! In my opinion, it is not better to pay with a loan from a bank or anywhere, Stock, forex, or crypto trading where you are not 100% safe because technically you are right but many times there are many upheavals in the market due to fundamentals. There is still time, so think carefully about whether investing in a loan is the right decision.

thesmallgod

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I would take this risk and borrow from bank if I have the collateral and nobody else depend on me. If otherwise, it is very dangerous and do not advise your friend to take the loan because if it backfires, it will not only affect him but also affect others that depend on him for living. Aside this, trading is also about mentality. When he borrow to trade, he might feel very nervous and anxious thereby taking wrong moves. let him continue trading with what he has started with. I am confident he can make up to the amount you intend telling him to borrow

semobo

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When someone is capable of making profits then they should be already having lot of money to continue their trading activity so when someone borrowing money means they are still not yet successful so taking risk with loan money is not advisable.

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