Taking loan to trade is a risky task - page 9.

jaberwock

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Quote from: sumant on September 23, 2021, 08:44:57 AM

Yes I will say forever don't take loan for trading. You can take loans for studies or any business. Trading is very risky method to earn money, in risky business I don't like to invest loans money because this trading can be a total loss game or when market comes down then loan money criteria will always be on your mind and you can not come out of this situation very easily for me I will not take loan for trading
I will use my own money.

Why do we tell people to not take a loan to trade? Is it because it is a loss for sure, or is it because they would have hard time paying it back? Let me tell you the main reason, if you take a loan and if your repayment depends on crypto going up, then you will end up losing a lot of money and maybe not even be able to pay your loan back which means they may get to take your stuff away, and there are many financial results of it.

However if you have 10k dollars income, and save 2k per month, and you decide to take a loan that requires you to pay 1k per month back, then is it still bad? Even if crypto goes to zero, you get to still repay it back. In that case, is it still bad? I do not think so.

Jasad

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= jasad =

Maybe when bitcoin up and take loan then happen like today will get much profit because bitcoin and altcoin price dump, but not guarantee with bitcoin and altcoin always dump. Better looking for other payment not using cryptocurrency for taking loan, when price pump you need to pay more than your money loan and added few as fees loan more than 5% until 10%.

Renampun

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Quote from: Rockstarguy on September 22, 2021, 03:24:04 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.

Borrowing money to trade is a coercive act...

I've also done something like this before, I borrowed several thousand dollars to trade with full confidence that I would make a profit but the reality is that I ended up in debt and all my capital ran out. If you are a newbie, borrowing money for trading is not recommended.

Cling18

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Quote from: livingfree on September 22, 2021, 03:28:17 PM

It is not advisable for someone to borrow money. It is like borrowing money to gamble. If you're just going to put that at risk without any guaranteed return.

Please, don't do that and don't use others' money for it.

Because there is no guarantee.

Borrowing or loaning just to have something to trade wouldn't be a smart idea. As for me, if a person wants to invest, then he needs to earn and save first so he would have enough funds to trade using his own money. Cryptocurrency is volatile and trading is like gambling where there's no assurance of a good profit so you could possibly lose your funds.

geegaw

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Quote from: sarmrakib on September 23, 2021, 08:20:37 AM

Quote from: Johnyz on September 22, 2021, 05:59:32 PM

Borrow money if its sure profit but in trading, there’s no guarantee on this so its really risky but if you are ready for it, then why not as long as you can still pay that money you can really borrow. Its like putting up a business where mostly borrow funds from the banks, and they are paying it you just have to know the strategy in trading, and always do your best.

It is always risky to borrow money for trading .We just take it when we can do a guaranteed work where a sure profit will be return .Invest on trading by borrowing money it will never feel you safe .You can lose your money on trading then you will fall on a huge trouble .So i never wanna suggest someone to borrow money for trading .You can increase your skill and earn from that if it is not much it will be increase certainly after a period then learn properly before entering on trading .Remember trading is always risky you can loose your capital here .

Guaranteed is just an absolute formula that exists in legends, you can look at the facts about banks, they are professionals for lending services and their clients are all owners of corporations, these owners always take on projects with no guarantees, they take risks but they can admit it and they have grounds for compensating. Investing from the start has been the ladder of failure, despair and golden heels of success, pumping a little more capital is just a little more intense feeling, but success also makes it more seismic.

irsykes

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Quote from: Rockstarguy on September 22, 2021, 03:24:04 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.

Not only risky thing, but i think people who do loan is too confident that they will always gain profit in trading. Being confident is good, but too confident can be boomerang which will hit us anytime we made mistake. I have seen someone who do that too, also beginner trader too because i never seen him involved in crypto then he made profit at first time and think if he use larger capital he will gain more. And everyone must be already know what happened next.

hugeblack

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You mentioned trading in general, but for example, some types of trading, for example buying and selling gold, may not achieve large losses, but it will not achieve gains, and therefore you will not be able to pay the interest on the debt if there are interests.

Trading in high-risk assets, especially bitcoin, is very dangerous and the possibility of losses is the highest, and therefore it should not, in any case, be from debt or money you need at the present time.

You can trade in the surplus funds that you do not currently need.

sumant

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Yes I will say forever don't take loan for trading. You can take loans for studies or any business. Trading is very risky method to earn money, in risky business I don't like to invest loans money because this trading can be a total loss game or when market comes down then loan money criteria will always be on your mind and you can not come out of this situation very easily for me I will not take loan for trading
I will use my own money.

sarmrakib

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Quote from: Johnyz on September 22, 2021, 05:59:32 PM

Borrow money if its sure profit but in trading, there’s no guarantee on this so its really risky but if you are ready for it, then why not as long as you can still pay that money you can really borrow. Its like putting up a business where mostly borrow funds from the banks, and they are paying it you just have to know the strategy in trading, and always do your best.

It is always risky to borrow money for trading .We just take it when we can do a guaranteed work where a sure profit will be return .Invest on trading by borrowing money it will never feel you safe .You can lose your money on trading then you will fall on a huge trouble .So i never wanna suggest someone to borrow money for trading .You can increase your skill and earn from that if it is not much it will be increase certainly after a period then learn properly before entering on trading .Remember trading is always risky you can loose your capital here .

Smartvirus

legendary

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It never strange on how this (taking a loan to invest or in this case, trade on, hope take interest and eventually pay back the loan) becomes a way to some start for some persons. In fact, I've seen a few individuals who try this and often failed to meet up with the targeted profit.

Taking a loan to start up an investment already places a pressure on you. The pressure of, nothing can or should go wrong as, you not only got profit to make but, a capital to refund and as such, a lose is not an option. Just like that, a tension has started building up and it could make you seek opportunities in the unexpected places, not excluding taking wrong trades with huge lot sizes just to meet up with your target and all that could land you right in the pit hole you wish to avoid. Its not a very fun thing to do #Taking investment loans.

Ararbermas

sr. member

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Probably but it depends on the situation in my personal opinion, wherein if you know how trading really works and you know what will be the results afterwards perhaps there's no problem with taking loan to trade. If not and you're out of knowledge then its a big mistake to take loan.. Try to practice your skills in demo account first before anything else so that you know how to handle any situation in trading.

tvplus006

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Quote from: Rockstarguy on September 22, 2021, 03:24:04 PM

...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.

If trading on the spot market brings you profit, then it may be time to use the leverage provided by the exchange. In practice, this looks the same as a loan received from a bank, but it is just as dangerous and will lead to the loss of the deposit if you do not understand the basics of trading and risk management.

cheezcarls

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Quote from: Rockstarguy on September 22, 2021, 03:24:04 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.

Of course, it’s risky. I mean….very risky at all!

It’s not a good idea to loan money for the purpose in using those funds for cryptocurrency trading. When I was broke, even if I wanna do crypto trading or investing into ICOs, I never borrowed funds from my parents, sisters, etc. Instead I found a way in selling unnecessary and important items that I have and doing small side jobs, and I use some of it for investing and trading until I finally had my breakthrough in joining airdrops and bounty programs in the glory days of 2017.

That’s just me of course. But once again yes I have to agree 100% that borrowing money for the purpose of crypto trading is a very bad idea. Coz’ you don’t know where will the price go, as it may go down the wire and stress you up for good.

Masplanc

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Borrowing to trade is not a good idea at all especially with a trader with no strategies and experience in trading. It is very risky , sometimes trading is like a game , wining the game is under probability it's uncertain.

Victorycoin

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It is not a good idea to take a loan in trading the market is not stable here if the value of the currency you have invested in goes down it will be difficult for you to repay the loans are not always profitable in some there is a loss the exchange devalues there will be losses. If the dollar continues to depreciate it is a loss for entrepreneurs it is good if the dollar rate rises suddenly but the crypto market is less sure when the market will go in any direction.

Strongkored

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If you are someone who relies income only on trading activities then this is very risky especially if you are a beginner, entering the trading world only based on people's success stories without learning that trading especially crypto is not as easy as their story there is a lot to learn and it takes time, sometimes you can lose not only getting big profits, but indeed using borrowed money for trading is not recommended especially when you don't understand the risks of trading.

Wexnident

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I don't request loans~

It's never advisable to borrow money under any circumstances tbh, whether it's for trading or not. Like for real, unless absolutely necessary like you'd die the next day if you don't borrow money, then don't. A loan is like something of a gamble really, it's like you took it since you failed in a gamble, so you're taking another one just to fix the first gamble you did, only to replace it with this one. Plus, it also stresses the one you borrowed from, whether it's a stranger (lending company) or a relative/ friend, it's quite problematic for them as well.

GreatArkansas

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This can be related to, "taking a loan, just to gamble". There is always the risk, even when you do some business, you still can't guarantee the profits, and there is always a chance that you will lose.
So, the famous quote comes here, "Invest what you afford to lose". Which is indeed correct and on the point.
Try first to learn more about trading, build your foundation and once you have extra money to trade in, use it without borrowing so you will not get rekt with interests if you are planning to loan or borrow money.

agustina2

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Quote from: Rockstarguy on September 22, 2021, 03:24:04 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.

Even an experience traders doesn't have an assurance too that he can take profits out from the loan. If a beginner will do it, he is just adding some big problems on his mind as we know loans have fixed payout and terms.

If he loaned to a friend or close one, maybe it's all about verbal and no terms when they should pay. But when a trader loaned to an lending institution or lending service/business, it's mandatory to follow the payment terms. Crypto is so volatile that the loan amount might become zero in value in just matter of few days. Too risky and everyone should stay away with that.

kawetsriyanto

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Quote from: Rockstarguy on September 22, 2021, 03:24:04 PM

As a beginner borrowing money to trade is not the best.

If you are a beginner, you don't need to hurry trading/investing with a big amount of money. Borrowing money to trade/invest is a very bad idea for the beginners, even experienced traders/investors will think twice before deciding to take loan money. Crypto market is very unpredictable, we don't know what's to happen in the market tomorrow. If the market is bleeding for a long time, it will be a big problem if you are using loan money. As a beginner, it is better to trade/invest with a small amount of money, use the money you can afford to lose. If you still have no money, just focus on learning first.

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