Other Alternatives to Borrowing Money to Start Trading

TimeTeller

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Quote from: Silberman on May 30, 2023, 04:24:54 PM

Quote from: Rockstarguy on May 27, 2023, 12:04:46 AM

Quote from: alastantiger on May 20, 2023, 10:55:56 AM

I am bringing this to the forum because someone asked me this question. I thought I should share and get more insights. According to the individual, while they were considering loaning about $100-$200 (money they know they can pay back within a month) to start their trading, someone advised them against it. Instead, they were told that all they need to do is to compound $10.

Normally taking a loan to trade is not a good idea because of the volatility of the market and it is not even good for beginners to have the habit of taking loan, it is better for them to start with their reserves, a small amount they can afford to lose. A beginner planning to take a loan to invest is only making plans to make money from trading at all cost and it is only greed that will trigger a beginner to take loan to start up trading. Every beginner should stay away from loan for trading, it is not a good start for beginners to pick interest in loan.

Trading has a failure rate of over 90%, such a stat should tell us how difficult it is to get any kind of success on the markets, and to choose to handicap yourself by taking a loan is a mistake almost no newbie can recover, so when taking everything into account the decision is obvious, newbies need to refuse to take any kind of loan when starting their journeys, otherwise by the time they realize the mistake they have made it would be too late for them to correct it, and they will not only lose all of that money but now they will have to spend months or even years to pay back the money they owe.

Also, the good thing about starting small is that as you go thru your trading journey, you will learn new tricks and strategies.
And at the same time, if you lose, it won't be hard on your pocket. The more tricks/strategies/skills you can acquire, the better for your trading journey.
If you want more funds later on, why not sell some of your things that you think you don't need anymore, de-clutter and you will add more cash to your activity.
You can also accept side jobs even small ones, much much better than taking a loan. At least, it is your own hard-earned money no one will chase you afterwards.

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Quote from: Rockstarguy on May 27, 2023, 12:04:46 AM

Quote from: alastantiger on May 20, 2023, 10:55:56 AM

I am bringing this to the forum because someone asked me this question. I thought I should share and get more insights. According to the individual, while they were considering loaning about $100-$200 (money they know they can pay back within a month) to start their trading, someone advised them against it. Instead, they were told that all they need to do is to compound $10.

Normally taking a loan to trade is not a good idea because of the volatility of the market and it is not even good for beginners to have the habit of taking loan, it is better for them to start with their reserves, a small amount they can afford to lose. A beginner planning to take a loan to invest is only making plans to make money from trading at all cost and it is only greed that will trigger a beginner to take loan to start up trading. Every beginner should stay away from loan for trading, it is not a good start for beginners to pick interest in loan.

Trading has a failure rate of over 90%, such a stat should tell us how difficult it is to get any kind of success on the markets, and to choose to handicap yourself by taking a loan is a mistake almost no newbie can recover, so when taking everything into account the decision is obvious, newbies need to refuse to take any kind of loan when starting their journeys, otherwise by the time they realize the mistake they have made it would be too late for them to correct it, and they will not only lose all of that money but now they will have to spend months or even years to pay back the money they owe.

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Quote from: sana54210 on May 28, 2023, 02:01:24 PM

Quote from: doomloop on May 26, 2023, 03:42:30 AM

A newbie should never take a loan or borrow money only to start his trading career because that is a big mistake. Someone who doesn't know anything about trading has never done it, doesn't even know much about the markets and their behaviors, that person will only need to learn the things at first, I wouldn't even recommend investing $10 but training and learning should be done using demo accounts.

One of the most important aspects of trading is patience, someone who doesn't have that can never get successful in trading because when you get into trading, there will be a lot of occasions where you will need to be patient and don't take hasty decisions.

There are so many ways of making money in crypto that I agree with people not starting off with debt, it would not be a smart way considering newbies would not be able to make much money to begin with. Trading is hard, you can work on it a decade and it will be still hard, it's really not that easy to handle.

It means that we are not going to see a lot of newbies making profit and they should not start off with a debt. However, if they end up with something better, like making money based on their work, then they can use that income to just trade. You can make anything from 150 dollars to 500 dollars just from signature alone, that requires you to be here for a while but if you do that, that is monthly money you could invest, a ton of money if you know what you are doing.

Even if you dont really have that IT-related skills which you could really still possibly be able to make some money here on this space on which you could really engage up on some jobs which does really just need up that kind of simple basic ideas or knowledge on which you could easily be able to caught up with. Just like on my case on which i do make money on signature campaign and with some simple tasks online which does pay up crypto on which this is would really be that a significant amount on which you could really be able to start up trading but of course it would really be depending if you are
really that sensible when you are thinking about possible additional income.Yes, its never been good on borrowing for the sake of capital but if you dont really have any choice or option
then its up to you if you could bare up the risks when it comes to borrowing money and its your choice to make, as long you've been aware on your obligations on repaying it back
then its up into your choice whether you should be going on or not.

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Quote from: doomloop on May 26, 2023, 03:42:30 AM

A newbie should never take a loan or borrow money only to start his trading career because that is a big mistake. Someone who doesn't know anything about trading has never done it, doesn't even know much about the markets and their behaviors, that person will only need to learn the things at first, I wouldn't even recommend investing $10 but training and learning should be done using demo accounts.

One of the most important aspects of trading is patience, someone who doesn't have that can never get successful in trading because when you get into trading, there will be a lot of occasions where you will need to be patient and don't take hasty decisions.

There are so many ways of making money in crypto that I agree with people not starting off with debt, it would not be a smart way considering newbies would not be able to make much money to begin with. Trading is hard, you can work on it a decade and it will be still hard, it's really not that easy to handle.

It means that we are not going to see a lot of newbies making profit and they should not start off with a debt. However, if they end up with something better, like making money based on their work, then they can use that income to just trade. You can make anything from 150 dollars to 500 dollars just from signature alone, that requires you to be here for a while but if you do that, that is monthly money you could invest, a ton of money if you know what you are doing.

Rockstarguy

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Quote from: alastantiger on May 20, 2023, 10:55:56 AM

I am bringing this to the forum because someone asked me this question. I thought I should share and get more insights. According to the individual, while they were considering loaning about $100-$200 (money they know they can pay back within a month) to start their trading, someone advised them against it. Instead, they were told that all they need to do is to compound $10.

Normally taking a loan to trade is not a good idea because of the volatility of the market and it is not even good for beginners to have the habit of taking loan, it is better for them to start with their reserves, a small amount they can afford to lose. A beginner planning to take a loan to invest is only making plans to make money from trading at all cost and it is only greed that will trigger a beginner to take loan to start up trading. Every beginner should stay away from loan for trading, it is not a good start for beginners to pick interest in loan.

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Quote from: lalabotax on May 25, 2023, 04:56:28 PM

I wonder why many prople are considering to start borrowing money to invest in cryptocurrency. This is high risk. Do they always think that investing in crypto will always earn much money? It is probably. But what kind of obstacles and ptoblems to meet if using money from the loans to invest. Moreover if we must pay the debt monthly. This will be high risk. It means that we force to invest more than we can afford, doesn't it?

well, that's a natural thing if we look at human nature, which always wants to get lots of profits instantly. However, the OP's case is that the money borrowed can be returned within one month, so it's not too risky if he has another job to repay the loan. it is sometimes done by people who want to immediately take a chance in trading, or people who can't wait to learn and make a lot of money. however, I think the wisest thing is not to need to borrow if he can pay off the loan within one month. he should study the movement of the chart first, before he actually has the money without borrowing.

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Quote from: Falconer on May 25, 2023, 02:15:37 PM

As some users have said, making loans for trading purposes is a high risk as long as they are not experienced traders and experts in their field. In fact, I believe an expert in trading will also be very overwhelmed adjusting his trading strategy when prices don't move in the direction they analyze, so the risk of bad loans plus trading losses will only make the trader's psychology worse.

Without a loan trading budget should also be considered a high risk activity. Price volatility is very erratic because prices can move in both directions unexpectedly. Market trends can change in a short time even in the last 24 hours the price has shown a positive side.

Psychology will indeed get worse when the initial loan becomes a loan that gives a lot of burden. Those professionals may still be able to cope, but if rookies do this kind of thing, they're just trying to get into a big hole and never get back up.
When it is necessary to trade using borrowed money, then the profit target must also be achieved to pay loan installments, this also needs to be done by management to regulate how much money will go into trading. do not enter everything, because it will be very risky to lose.

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Quote from: doomloop on May 26, 2023, 03:42:30 AM

Quote from: LogitechMouse on May 25, 2023, 02:31:17 AM

For newbies?? Are you sure about that?
Do you think that newbies can make their 10$ into 100$? Do you think that they can make their initial capital x10 knowing that they're just newbies.

I'm not saying that newbies have the same experience, but when I was a newbie, I'm very prone to FOMO's, and pump and dumps. It's because I was a newbie at that time, and I don't know anything about technical analysis, or trade base on what are the latest news. I'm pretty sure that newbies can't do that easily, so don't daydream.

Well, trading for 10$ as a newbie is a good way to kickstart your trading journey already, but don't expect to have good results on that one. Most of the time, you will incur losses because of you lacking of experience. Is there any alternatives that I know? Maybe just work harder, earn more money, and use that money to trade. I don't recommend borrowing money just to trade as well unless that loan can be paid within a month or 2.

A newbie should never take a loan or borrow money only to start his trading career because that is a big mistake. Someone who doesn't know anything about trading has never done it, doesn't even know much about the markets and their behaviors, that person will only need to learn the things at first, I wouldn't even recommend investing $10 but training and learning should be done using demo accounts.

One of the most important aspects of trading is patience, someone who doesn't have that can never get successful in trading because when you get into trading, there will be a lot of occasions where you will need to be patient and don't take hasty decisions.

Its never been recommendable even if you aren't a newbie because we do know on what are the imposed risks if we do take a loan? We do know that we do have some responsibility which we do need to be dealing off with and if you are someone who isnt really that financially sustainable or something capable then its better to avoid on getting a loan as much as possible. Unless if you are really that able to repay it on time or simply we do talk about on being a good payor then it wouldnt really be an issue but if not then better not to proceed because you would really be just making yourself that miserable.
This is why as much as possible it would really be that better if we dont really take any loans or whatsoever on starting up on our trading journey because this would really be involving lots of trials and errors
on which it would really be that sensible that using up a loaned money is never been that a good idea.

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Quote from: doomloop on May 26, 2023, 03:42:30 AM

A newbie should never take a loan or borrow money only to start his trading career because that is a big mistake. Someone who doesn't know anything about trading has never done it, doesn't even know much about the markets and their behaviors, that person will only need to learn the things at first, I wouldn't even recommend investing $10 but training and learning should be done using demo accounts.

One of the most important aspects of trading is patience, someone who doesn't have that can never get successful in trading because when you get into trading, there will be a lot of occasions where you will need to be patient and don't take hasty decisions.

Most of the time people do not realize how difficult something is until they try their hands at it, many newbies begin to trade the markets without using a demo account first, this gives them a false idea that trading is incredibly easy, if they instead took the time to trade the markets with a demo account they will soon realize they are in the red most of the time, and this could be an eye opener for them as they will understand that trading is way more difficult and they need to make a huge effort before they get to see any profits.

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Quote from: LogitechMouse on May 25, 2023, 02:31:17 AM

For newbies?? Are you sure about that?
Do you think that newbies can make their 10$ into 100$? Do you think that they can make their initial capital x10 knowing that they're just newbies.

I'm not saying that newbies have the same experience, but when I was a newbie, I'm very prone to FOMO's, and pump and dumps. It's because I was a newbie at that time, and I don't know anything about technical analysis, or trade base on what are the latest news. I'm pretty sure that newbies can't do that easily, so don't daydream.

Well, trading for 10$ as a newbie is a good way to kickstart your trading journey already, but don't expect to have good results on that one. Most of the time, you will incur losses because of you lacking of experience. Is there any alternatives that I know? Maybe just work harder, earn more money, and use that money to trade. I don't recommend borrowing money just to trade as well unless that loan can be paid within a month or 2.

A newbie should never take a loan or borrow money only to start his trading career because that is a big mistake. Someone who doesn't know anything about trading has never done it, doesn't even know much about the markets and their behaviors, that person will only need to learn the things at first, I wouldn't even recommend investing $10 but training and learning should be done using demo accounts.

One of the most important aspects of trading is patience, someone who doesn't have that can never get successful in trading because when you get into trading, there will be a lot of occasions where you will need to be patient and don't take hasty decisions.

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Quote from: lalabotax on May 25, 2023, 04:56:28 PM

I wonder why many prople are considering to start borrowing money to invest in cryptocurrency. This is high risk. Do they always think that investing in crypto will always earn much money? It is probably. But what kind of obstacles and ptoblems to meet if using money from the loans to invest. Moreover if we must pay the debt monthly. This will be high risk. It means that we force to invest more than we can afford, doesn't it?

That's because they think that borrowing money can provide the fastest solution to having money so they can immediately invest in crypto. They did that because some of their friends could make a lot of money investing in crypto, so they thought it was easy.

But if they can think and research in more detail, it will never be easy and they even risk losing if they can't find a coin to invest. They also have to think about how they can return all the loan money every month or later within a certain period.

Hopefully, those who haven't borrowed money can think more about the pros, cons, and risks they will face. And if they have convinced themselves that borrowing money is a path they can take and are ready to take the risk, they can borrow money and start investing in crypto.

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Quote from: alastantiger on May 20, 2023, 10:55:56 AM

I am bringing this to the forum because someone asked me this question. I thought I should share and get more insights. According to the individual, while they were considering loaning about $100-$200 (money they know they can pay back within a month) to start their trading, someone advised them against it. Instead, they were told that all they need to do is to compound $10 instead.

For newbies, compounding a $10 crypto trading investment means reinvesting the profit from your initial $10 capital in the same asset, such as bitcoin, to generate an increase in returns over time. So the $10 may compound over time, and you can get $100 in returns. It requires patience, just as trading does.

This is the best alternative to loaning money to kickstart your trading journey. What are the other alternatives you know?

Borrowing money to begin your journey should never be an option, in a way I understand that someone that is just discovering the market now is excited about the possibility of making money with bitcoin.

But this is not the way to go about this, and there are several reasons for that, to begin with the rate of success for new traders is very low, also this attitude will foment impulsive behavior as you are trying to earn more money than what you could earn under normal circumstances, and finally you will affect your finances which could delay even further your reentry point to this market as you will have to pay the debts in which you incurred.

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Quote from: adaseb on May 20, 2023, 11:59:58 PM

The reason why nobody lends any money to traders is because since they are asking for a loan means they don’t know how to trade. Since they don’t know how to trade they will lose that money and won’t pay you back.

As funny as this sounds, it is accurate because it is humanly expected that when one request a loan to start a trade, it should start making profit after the launch.
Most businesses mostly those involving trade, might take time to mature and start yielding profit. This is however not thought about.
Also there's the case of if the trader has done any business or trade before or has done a similar line of trading before this.

For those who think to take out a loan and start a business or trade is practical, keep in mind the duration to payback, because within this time, so many factors and variables will be at play.

The other alternatives may include one getting a job or part time hustle to save up for a duration.
Could make a formal plan on how to succeed in the trade, incase a likely loaner who might be a friend decides to help.
Ask yourself if you have collateral equivalent incase the loan can't be easily paid back.
Try loan apps or join a group cooperative where the members know themselves and contribute a certain quota to help themselves incase such need arises.

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I wonder why many prople are considering to start borrowing money to invest in cryptocurrency. This is high risk. Do they always think that investing in crypto will always earn much money? It is probably. But what kind of obstacles and ptoblems to meet if using money from the loans to invest. Moreover if we must pay the debt monthly. This will be high risk. It means that we force to invest more than we can afford, doesn't it?

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Quote from: Questat on May 25, 2023, 04:07:39 PM

Quote from: Oshosondy on May 20, 2023, 11:03:47 AM

It is not easy to use $10 to make $100 in trading, even if you gain and include the profit in the next trading or position your opened. One of the disadvantages of this is that once there is loss, it would be more because the profit is included. I see this as a way to greediness and a way to lose.

If you want to trade, you have to gain and set aside your profit, or you can set aside some of your profit which you will not be using for trading.

And even we have patience but can't take it longer as it takes several months, and later on, we still give up trading.

Well, the best thing I see is to wait to have enough capital before starting trading. Because $10 is nothing, what we can buy from that is just shitcoins, maybe $50 is a little bit better. Not that I suggest OP take a loan but I think that is the best option as long as we also have another source of income when in case our trades fail, we are still able to repay it.

We are humans which we do really have that different level of patience on which we could neither do wait up for too long or we would really be just liking to see some immediate result or outcome on a short time.

This is actually according into your own risks management on which if you dont have the money to start up on trading or you wont like for it to be small then you could always opt on taking up a loan but of course you should really be that responsible on repaying back in time if you wont like for possible problems. The difference on using up your own money is that on the time that it would lost, you are the ones who would lost money and there's no responsibility that you would be needing to solve on, unlike when you do take up some loans and if in case you had lost a trade then you would really be still needing
to pay it up or simply there's no exemptions into that.

Questat

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Quote from: Oshosondy on May 20, 2023, 11:03:47 AM

It is not easy to use $10 to make $100 in trading, even if you gain and include the profit in the next trading or position your opened. One of the disadvantages of this is that once there is loss, it would be more because the profit is included. I see this as a way to greediness and a way to lose.

If you want to trade, you have to gain and set aside your profit, or you can set aside some of your profit which you will not be using for trading.

And even we have patience but can't take it longer as it takes several months, and later on, we still give up trading.

Well, the best thing I see is to wait to have enough capital before starting trading. Because $10 is nothing, what we can buy from that is just shitcoins, maybe $50 is a little bit better. Not that I suggest OP take a loan but I think that is the best option as long as we also have another source of income when in case our trades fail, we are still able to repay it.

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Its not easy imagine earn profit consistency every day 10$ or 10% from borrowing money with $100, I don't sure has chance for OP or beginner when using option take borrowing for investing or trading in cryptocurrency. Seems huge expectation with profit 10% every day in cryptocurrency because price of bitcoin not stable and moment drop drastically need longer time for recovering.

I don't sure with your ideas exactly sharing to newbie for borrowing money and investing in Bitcoin, not guarantee in daily day profit and difficult for them how to payback with borrowing money when price drop. Better learn step by step about cryptocurrency investment or want to trade in some altcoin assets before borrowing money with higher risk waiting for how to pay back and has loan interest.

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Quote from: AakZaki on May 25, 2023, 12:14:21 PM

Quote from: Bushdark on May 23, 2023, 05:48:09 PM

Borrowing money just to trade is indeed risky, especially if trading knowledge doesn't really understand and only capitalize on other people's words. Not recommended for borrowing. it is better to trade with the ability of the funds you have. When you have to borrow, you really have to be aware of the bills that will be paid every month and the ongoing interest. if you don't profit from trading, it will be an additional burden and will pay you nothing.

As some users have said, making loans for trading purposes is a high risk as long as they are not experienced traders and experts in their field. In fact, I believe an expert in trading will also be very overwhelmed adjusting his trading strategy when prices don't move in the direction they analyze, so the risk of bad loans plus trading losses will only make the trader's psychology worse.

Without a loan trading budget should also be considered a high risk activity. Price volatility is very erratic because prices can move in both directions unexpectedly. Market trends can change in a short time even in the last 24 hours the price has shown a positive side.

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Quote from: Bushdark on May 23, 2023, 05:48:09 PM

We should never in any way think of borrowing money from people just to satisfy our curiosity of getting into trade when we know that we don't have the fund to sustain usbif we finally lose the money that we are using to trade. Trading is very risky so we should not borrow money from any source and trade since the market so we cam trade when we can try and hustle and make some cash so we can use it to trade the market and make some funds that we can use to to trade bigger in the market without having any problems.

Borrowing money just to trade is indeed risky, especially if trading knowledge doesn't really understand and only capitalize on other people's words. Not recommended for borrowing. it is better to trade with the ability of the funds you have. When you have to borrow, you really have to be aware of the bills that will be paid every month and the ongoing interest. if you don't profit from trading, it will be an additional burden and will pay you nothing.

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Quote from: Cling18 on May 21, 2023, 09:38:06 AM

I agree with the idea of selling your possessions or spending your hard-earned money to raise the necessary funds. It is preferable to utilize only funds that we can afford to lose in order to avoid the consequences of borrowing in the future. It would be preferable to trade without fear of not being able to repay our debt because we could concentrate on our primary purpose.

Yes that's the truth, If you're finding it difficult to get capital, selling your liability is just one solution and you can also sell some assets as sacrifice to get capital to start up. At the end it'll be worth it. You can raise enough profits that you can buy back all you sold to rise that capital. When you use your personal funds as capital you don't get yourself under pressure.

If you lose all the money, you don't have to pay anyone and you learn a lesson form that experience although you'll be very careful because you know what it took you to to raise that capital that you're using now to trade. Borrowing money to trade is a very wrong way to start.

Topic: Other Alternatives to Borrowing Money to Start Trading (Read 542 times)