Taking loan to trade is a risky task - page 5.

jossiel

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Quote from: dunfida on September 28, 2021, 06:44:29 PM

Quote from: jossiel on September 28, 2021, 06:06:41 PM

Quote from: zaesvlas on September 28, 2021, 02:22:11 PM

It should be understood that trading is a risk in any case. I think a trader should be ready for this.

Everyone does.

But in this case it's different.

Borrowing for trading isn't an ideal thing because you're taking risk but not with your money. And that is why traders shouldn't do this because of the volatility even if they're that good enough.

Being good enough? then that might do but still not all the times you would really make profit no matter how good you are and it would be better to start off with you own money or capital to trade with rather than on getting some loan and start to trade it.If you could handle the risk then go ahead but if not or you have doubts then better not to do it if you dont like to put yourself in a problem.
Invest on what you can afford to lose.

A lot are good traders but still, they can't be sure with the outcome of their trades that's borrowing despite being good, it's still not recommended.

You trust yourself and experience.

But it's not an advisable thing to do.

beastblock

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Quote from: Rockstarguy on September 22, 2021, 04:24:04 PM

The joy in trading is when the money which is been used to trade is owned by the trader. Normally trading is something that is unpredictable, one can't really know or see the outcome if it will be a big loss, small loss or big win, small win. When money that is been used for trading is owned by the trader if there should be loss he may not too feel about the loss, unlike when the money which was been used for trading is borrowed, in a case whereby the person do not have good source of income.

I know someone who started how to trade about four months ago. He is a beginner in trading, I don't really know how good he is, but to him he may feel he can always make earnings. I think he was so confident in himself, he had to borrow money for trading which he could not make good profit. As a beginner borrowing money to trade is not the best. It is not even advisable to use all the money one has to trade or invest talk much of to borrow to trade.

Never ever take loans for trading. PERIOD

zanezane

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It's not just risky but it's also dumb especially if you're not even a company and you're not good with trading in the first place, unless you're really confident with your skills then go ahead and take a loan, another problem that you might encounter is that the loan might've a really huge interest rate which isn't ideal because you're going to drown in debt if you lose in trading and you're not going to earn a big profit if you win the trading.

Twinscoin2017

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Taking a loan to invest or trade in crypto is risky. But some people do take a loan and still used it as an investment, I think it is still fine to have loan but we need to loan a small amount only an amount that we can afford to paid specially the interest, in my part I don't prefer to take a loan I only invest a small amount and if I will failed then used another small amount and soon I know I will earn, capital is the most important in trading and investing because we cannot do trade or invest without capital the second is learning because if we don't have enough learning about trading and investing we can surely loss.

dunfida

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Quote from: jossiel on September 28, 2021, 06:06:41 PM

Quote from: zaesvlas on September 28, 2021, 02:22:11 PM

It should be understood that trading is a risk in any case. I think a trader should be ready for this.

Everyone does.

But in this case it's different.

Borrowing for trading isn't an ideal thing because you're taking risk but not with your money. And that is why traders shouldn't do this because of the volatility even if they're that good enough.

Being good enough? then that might do but still not all the times you would really make profit no matter how good you are and it would be better to start off with you own money or capital to trade with rather than on getting some loan and start to trade it.If you could handle the risk then go ahead but if not or you have doubts then better not to do it if you dont like to put yourself in a problem.
Invest on what you can afford to lose.

jossiel

hero member

Activity: 2842

Merit: 625

Quote from: zaesvlas on September 28, 2021, 02:22:11 PM

It should be understood that trading is a risk in any case. I think a trader should be ready for this.

Everyone does.

But in this case it's different.

Borrowing for trading isn't an ideal thing because you're taking risk but not with your money. And that is why traders shouldn't do this because of the volatility even if they're that good enough.

isaac_clarke22

sr. member

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Quote from: Slow death on September 26, 2021, 07:13:23 PM

~

This is what I pointed out previously on a similar thread about someone asking if loaning to trade is okay.
The worst is obviously not being able to pay because you did not hit your desired price excluding the fees that you might incur from exchange. I could have done that in my day trade back in the days, but I know it is absolutely unreasonable to do so.

Regardless if it is a friend or family that you are loaning from expecting lax upon the date of making payment after the due, it is still a liability that you need to resolve in the future.

perfect999

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Quote from: pelumi20 on September 27, 2021, 04:14:29 PM

It is not a very smart decision to take a loan or borrow money to trade. You are simply putting yourself in big trouble. Because trading could be unpredictable at times and the result of every single trade is unique, so it is possible to lose all your money. You would also be trading with emotions which is what every trader should avoid.

Loan mean you are not in good financial position so its already not good idea but after taking loan you want to do trading mean double risk just because of this you can check here on this thread mostly peoples feeling its not good idea because this can ruin your life forever or for very long period if you want to do then surely try with some small amount or first try to have some savings then you can jump into this because this crypto market is volatile, and any wrong move can bring you in deep trouble the best thing is just invested which you can afford to lost otherwise just enjoy from sideline is better.

zaesvlas

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It should be understood that trading is a risk in any case. I think a trader should be ready for this.

stomachgrowls

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Quote from: Hypnosis00 on September 28, 2021, 11:32:53 AM

Quote from: pelumi20 on September 27, 2021, 04:14:29 PM

It is not a very smart decision to take a loan or borrow money to trade. You are simply putting yourself in big trouble. Because trading could be unpredictable at times and the result of every single trade is unique, so it is possible to lose all your money. You would also be trading with emotions which is what every trader should avoid.

And we don't have to try it, never as this will be the beginning of our problems.
I can figure out what will happen after this and that will lead to a miserable life especially when we only just rely on trading alone. Maybe if we have some sources of income to cover up the payments, that might not a huge problem but still, it was not a smart idea and I dare not do that instead of waiting the time to have enough funds to start.

We have to think first about the consequences it brings back to us, not being too optimistic as we can't escape such reality.

If you are already aware with the possible consequences or experiences then why would really proceed though? You dont need to experience it for you to believe on because this is indeed a real life kind of scenario on where

taking up some loan just for you to make trades is really a risky kind of decision on where you do really need up to be profitable for you to sustain up yourself and able to repay those loans aside on having some other

source of income and to say that trading was never been an easy kind of investment for you to do so.Always consider out the difficulty of such situation before proceeding in.

Mamun74

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Trading is not an easy way to make always take good profit from trading. When you start trading then you need to proper and Higher skill about trading and also you need to patience and control your emotion.I think it is not smart your decision. Loan money is very risky,i Don't agree with your decision. I think the biggest problem is barrow money.Trading is not gambling site.

Hypnosis00

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Quote from: pelumi20 on September 27, 2021, 04:14:29 PM

It is not a very smart decision to take a loan or borrow money to trade. You are simply putting yourself in big trouble. Because trading could be unpredictable at times and the result of every single trade is unique, so it is possible to lose all your money. You would also be trading with emotions which is what every trader should avoid.

And we don't have to try it, never as this will be the beginning of our problems.
I can figure out what will happen after this and that will lead to a miserable life especially when we only just rely on trading alone. Maybe if we have some sources of income to cover up the payments, that might not a huge problem but still, it was not a smart idea and I dare not do that instead of waiting the time to have enough funds to start.

We have to think first about the consequences it brings back to us, not being too optimistic as we can't escape such reality.

Shasha80

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Quote from: Quidat on September 25, 2021, 04:50:09 PM

Quote from: Shasha80 on September 25, 2021, 04:48:03 PM

Quote from: rahmatullah9305 on September 25, 2021, 03:32:44 PM

~

Borrowing money for trading is not only risky, it can also cause problems. Especially for beginners who do not have the knowledge and
experience of trading, if they trade using borrowed money, it is certain that they will be in debt. Because volatile markets are not easy
to predict, even for traders who have good analytical skills there is no guarantee that predictions are made accurately. Then borrow money
must pay installments, while there is no certainty of profit generated. So my advice if we don't have capital we shouldn't need to force trading,
it's better to collect capital first by working, not by borrowing money.

When do talks about risk then it would be always be accompanied with danger but of course it would really be having some benefits if it turns out to be good but if not then expect the opposite.
Taking some loan for you to make out some crypto investment isnt bad as long you do able to repay those interest in other sources which do basically means that you wont really be
relying on those crypto investment for you to repay then i could say that it is really just fine but if you do make it as a main source then this is where problem begins.

I understand your explanation, it is quite safe if we borrow money to trade in crypto, but we have the income to pay the loan money. But sometimes
if the loan money runs out due to a loss when trading, we become lazy to pay the debt. Indeed, not everyone is like that, but it would be better if
the trading capital we use does not come from borrowed money. But back to each person's decision, if that person dares to take risks and dares to
bear the consequences, it's his right to trade with borrowed money.

GeorgeJohn

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Taking a loan to trade is categorized in two forms which i can classify as positive and negative, the negative aspect of it have a higher point of lost than the positive due to lost, because they is every tendency that a trade may get lost or gain, so therefore the positive aspect is not really sure from my perspective, because before a trade ensure that they will be surplus profit he or she might have study or read the market structure very well before adventuring into it, so the positive aspect is at very risky except its a professional trader who knows the rudiments of trading before taking the a loan for trading investment.

pelumi20

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It is not a very smart decision to take a loan or borrow money to trade. You are simply putting yourself in big trouble. Because trading could be unpredictable at times and the result of every single trade is unique, so it is possible to lose all your money. You would also be trading with emotions which is what every trader should avoid.

ReiMomo

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Just invest as much as you can just from your income. Never go for a loan for trading. Market is volatile and it might move in any direction and we might not able to close off the debt, EMI on time which will put us in trouble. We have plenty of good coins at cheap rates. So go with what you can from your pocket. Never go for loan either from banks, friends or neighbors.

NicNacCoin

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There is a risk in every job in life. If you do not take risks in your life, you will never be successful.If you take a loan in cryptocurrency, you will have a lot of risk, but there is hope to get a lot of profit.We take loans with a leverage of 10x-20x-30x the with 200$ when trading. When there is profit, we get enough profit in a short period of time.And if we lose, our profits vanish in a short time. And especially if you can understand, then there is very little chance of loss.

onecall123

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Quote from: 24Kt on September 27, 2021, 11:15:44 AM

It is better to stick on trading with your own funds. Even if you are a pro, the risk is always there. Unless, you have other resources that you can use in case your trading failed. And put it as a collateral. Otherwise, just be contented on what you have as you can increase that capital if you really know the market.

Undoubtedly! The cryptocurrency market is not a get rich quick scheme. Don't borrow funds for crypto investment at the initial stage, it's too risky. Investing in crypto isn't a good way to raise emergency funds. Crypto is too volatile. How would you handle it if it was down by 50% the month you needed it for emergency expenses? You need to learn how to day trade and invest before taking any bold steps. Borrow money against your cryptocurrency to earn more.

24Kt

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Quote from: Yamifoud on September 27, 2021, 10:54:17 AM

Quote from: tygeade on September 27, 2021, 08:56:06 AM

Yes you are right, borrowing money to trade when you are not sure of the outcome of the trading is very risky. If you’re going to be trading you need your own money to do that, because in a situation whereby you lose that money you will have to start looking for a means to raise the money again and pay back to the person who you borrowed it from.

They don't have the capital to start that is why they decided to make a loan/borrow money but somehow they neglected to think about what will be its returns especially when that their trader isn't successful. Maybe if we are a pro-trader, this was not a big problem but for the beginners, that seems not advisable.
That is better to start the amount that only we have (not from others) and so we have no obligations when we fail. $50, $100, that seems so small but if that only we got, then that is what we have to use. Besides, trading is not all about having a huge capital or not, it is all about knowledge and skills.

It is better to stick on trading with your own funds. Even if you are a pro, the risk is always there. Unless, you have other resources that you can use in case your trading failed. And put it as a collateral. Otherwise, just be contented on what you have as you can increase that capital if you really know the market.

Yamifoud

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Quote from: tygeade on September 27, 2021, 08:56:06 AM

Yes you are right, borrowing money to trade when you are not sure of the outcome of the trading is very risky. If you’re going to be trading you need your own money to do that, because in a situation whereby you lose that money you will have to start looking for a means to raise the money again and pay back to the person who you borrowed it from.

They don't have the capital to start that is why they decided to make a loan/borrow money but somehow they neglected to think about what will be its returns especially when that their trader isn't successful. Maybe if we are a pro-trader, this was not a big problem but for the beginners, that seems not advisable.
That is better to start the amount that only we have (not from others) and so we have no obligations when we fail. $50, $100, that seems so small but if that only we got, then that is what we have to use. Besides, trading is not all about having a huge capital or not, it is all about knowledge and skills.

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