Topic: If we have great ability, is capital from bank loans safe for us to use trade? - page 6. (Read 1306 times)
February 29, 2020, 08:21:58 AM
Even your friend or you are professional trader or you know many information about trading using money that you borrow to the bank is very risky because we know Bank loan is very restrict and once you did not pay you go to jail instantly for sure and the percentage of interest is high. Just use the money that you have and don't lend to the bank.
February 29, 2020, 06:20:17 AM
I think we don't need to use capital from the bank loans to trade if we can trade with making a nice profit because you will make another risk in the pay that money to the bank. If your friend can make a profit from his trade, then I agree with him to make as much profit as he can and never borrow money from the banks. The risk and insecurity will be the important thing that we need to think about because it is about how we can pay the money, and I think your friend doesn't want to get more risk by the banks.
February 29, 2020, 02:45:20 AM
He found his way and the right place for his future is trading in safe mode, don't blame/ judge him for his decision. I'm not good trader but I think people feel comfortable in safe place than must leave into new place with grey result. For me ( personal opinion ), leaving safe ways and test strategy using big fund is worth to try, if fail at lest he know there's line couldn't pass.
February 28, 2020, 10:30:53 PM
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.
the bank as trading capital, but he refused with the reason too risky and insecure.
Your friend is professional trader, he know his limit and safe place for his strategy. Using bigger fund to get bigger profit from bank loan is not wise decision, there's risk and pressure when he fail, in psychology knowledge we should avoid it. We can say he doesn't like challenge but I'm really sure if he move from his safe zone it will give bad future for his economy. Let him in his position right now and I suggest you learn trading from him, I promise you'll success like him, even better.
February 28, 2020, 10:21:34 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.
Your friend is right. It's wrong and high risk taking out a loan from a bank to trade because any losing trade on his part will cause him to panic. Trading doesn't need panicking and banks don't like excuses once it comes to repaying a loan. No excuses whatsoever. This is where you get to hate the bank. Let him build on his small capital and with constant profits from winning trades it will grow. Then he can take bigger risks and bigger profits. 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.
February 28, 2020, 05:59:02 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
Your buddy does everything right
And anybody in your place should refrain from recommending such things. If he follows your advice through and fails, losing the borrowed funds while still having to pay the debt, you will be to blame, and rightfully so. Apart from that, 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
February 28, 2020, 02:18:58 PM
That guy sounds like a professional trader though, in trading, having a big or small capital does not really matter. When you are good, you are good
The reality is quite different, though
You may be good with a small capital and quite bad with a bigger one. Trading is not so much about technical skills as about having the right mindset. And with bigger capital, the time-tested approaches can be easily disrupted due to psychological factors of never having to deal with a substantially bigger capital before
This is not even the point of discussion as the numerous examples of people who suddenly became rich and then ended up even poorer than they were before speak for themselves. There is no abstract "professional trader", professional everywhere and with any amount of money at their disposal
February 28, 2020, 01:28:02 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.
Your friend is correct in his assessment, even if you are a great trader you should never ask for a loan in order to trade, the reason for this is that even with great skills there will be times in which the market will not cooperate at all and you will incur several losses in a row, it is hard enough to try to make profits in the market without having to pay interest to a bank if you add a handicap like that I can guarantee you that even most of those that obtain profits in the market will be unable to pay their debt with their trading skills alone. 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.
February 28, 2020, 01:27:04 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
Your buddy does everything right
And anybody in your place should refrain from recommending such things. If he follows your advice through and fails, losing the borrowed funds while still having to pay the debt, you will be to blame, and rightfully so. Apart from that, 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
February 28, 2020, 01:04:39 PM
There was already someone who came up with this idea. Same Idea, different terminologies used. That guy sounds like a professional trader though, in trading, having a big or small capital does not really matter. When you are good, you are good. Having a big capital from anywhere but is a lack of skills in trading will make you end up being broke. Remember that thing. But as a trader with character and skills, starting small is never a sad thing. You can always make your small stuff big when you have the skills. Nevertheless, simple but easy to comprehend.
February 28, 2020, 12:29:11 PM
No matter the high skills, experience and self confidence there is always a risk in trading and there is no guarantee of profit.
First rule of any investment so of cryptocurrencies investment too is to invest the extra funds that you don't need and not the funds that you don't have.
Therefor I wouldn't suggest that you use bank loan for trading and investing because there is always a risk that you will don't make enough profit to cover the loan so you might find yourself in problems.
First rule of any investment so of cryptocurrencies investment too is to invest the extra funds that you don't need and not the funds that you don't have.
Therefor I wouldn't suggest that you use bank loan for trading and investing because there is always a risk that you will don't make enough profit to cover the loan so you might find yourself in problems.
February 28, 2020, 12:15:27 PM
If someone can do just like how your friend does then it is not a problem to loan out some cash from the bank but remember that it is still risky even though if someone can make a money from trading. It doesn't mean if you are good at trading you won't fail as a trader, the best advice is to not use any borrowed money to trade or gamble, always minimize the risk of losing money to avoid some troubles if you aren't confident with your trading skills.
February 28, 2020, 09:59:29 AM
How did you not see that it is too risky? I mean it is quite obvious and looking at you right in the face and you deemed him "insecure" instead of yourself too crazy to do something like that? If you are having so much hard time to not even understand why bank loans are not the way you should be trading there are thousands here that can explain to you why it is a bad idea but you probably already know it don't you?
I mean you know what a loan is, you know you will have to pay it back, you know that there is always a chance your friend may end up losing money and not be able to pay the bank back as well, there is no way you don't know any of this you know them but you still want to take that "risk" because you think you may be on the winning side. We all just say "what if you are not".
I mean you know what a loan is, you know you will have to pay it back, you know that there is always a chance your friend may end up losing money and not be able to pay the bank back as well, there is no way you don't know any of this you know them but you still want to take that "risk" because you think you may be on the winning side. We all just say "what if you are not".
February 28, 2020, 09:00:41 AM
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.
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.
If there is a chance to take it by cash then do it.
Do not directly buy bitcoin or any altcoin using banks.
You are just going to mess it up if you want out.
Loan then pay with your profits.
But there is also one thing to consider. Does your friend who is profiting from under $500 can manage large amounts? Have he tried it?
Is there a possibility that now he may lose because of the tension of the bigger amount in stake?
February 28, 2020, 08:20:33 AM
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.
I actually agree into your friends insight towards bank loan on using it on his trading to expand out lot sizes.Its possible but would really be still like a gamble knowing that trading doesnt guaranteed out profits on daily basis which there are times that losses is inevitable but if a certain trader can handle it out on making profits on greater chances then it might be worthy to try it out.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.
In my case if im that good then i might consider on getting a loan but wont really be that big so that it wont be hard to repay.Just get the amount that you can actually pay
even the market wont be good into you.
February 28, 2020, 05:01:48 AM
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.
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.
Even if you have a great ability on tradings still its not a good ground for you to get a loan in bank for capital since we still doesn't know on how the scenario came in the future and if the market will not come to our side for sure you will be left empty handed and broke.
So better trade a amount what you have that you can afford to lose and remember to secure profit always to win on the trade.
February 28, 2020, 04:37:20 AM
This is a risky move but it can be more profitable since your friend already have a good skills in trading. Its ok to have a small capital as long us its not came from any debt, and you cannot force your friend to borrow money because he knows what he is doing. If I do have a great skills in trading, I will use my savings as my capital and no need for me to borrow money and pay the interest.
I wouldn't recommend this for begginers who seeks an opportunity with trading unknowingly, because without any proper knowledge is possibly bringing them to much worst problem. For those who come up with a strong foundation, I guess that's their last option to use banking loans but it should be done with focused trading approach before trading profit will become the source of funds that can be used for family needs and other expenses.
February 28, 2020, 03:40:13 AM
never do that
it doesn't matter if you are the biggest trade in the world or not, but never borrow from the bank to make a trade. Look at the following:
1 - you make a loan at the bank and the bank gives you that loan, but to pay in 3 or 5 years, that means that every month you will have to pay the loan
2 - you start trading, however you will never make a profit every consecutive day without having losses
3 - The market suddenly drops in price, which means that even if you put Stop - Loss you will have some loss
4 - if you get sick you won't be able to trade and that means lost days
5 - there will come a time when you will start to trade under pressure because you have to pay part of the loan at the end of the month, apart from that you will also have other bills to pay
it doesn't matter if you are the biggest trade in the world or not, but never borrow from the bank to make a trade. Look at the following:
1 - you make a loan at the bank and the bank gives you that loan, but to pay in 3 or 5 years, that means that every month you will have to pay the loan
2 - you start trading, however you will never make a profit every consecutive day without having losses
3 - The market suddenly drops in price, which means that even if you put Stop - Loss you will have some loss
4 - if you get sick you won't be able to trade and that means lost days
5 - there will come a time when you will start to trade under pressure because you have to pay part of the loan at the end of the month, apart from that you will also have other bills to pay
February 28, 2020, 03:34:44 AM
It's also like you are doing gambling if you use to trade the funds from loans.
But I know there are a lot of people out there that they are using some loan money but still, the RISK is still there.
Even how good or skillful you are on trading, you can still say that you will win every trades.
Make sure you have backup or plan B if ever your loan will get rekt in trading.
But I know there are a lot of people out there that they are using some loan money but still, the RISK is still there.
Even how good or skillful you are on trading, you can still say that you will win every trades.
Make sure you have backup or plan B if ever your loan will get rekt in trading.
February 28, 2020, 03:18:18 AM
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.
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.
Nobody should be taking loans out to trade with. What happens if he screws up and blows up his account?
Increasing capital and risk by 10x, especially with borrowed money will have a drastic (probably negative) effect on trading psychology. I doubt he would keep performing so well. That's a recipe for emotional trading.
If he wants to try trading with other people's money and taking a cut of their profits, he may be able to open a PAMM account at a crypto CFD broker. Not my area of expertise but I'm pretty sure they're out there.
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