This why wall street are rich and you are poor - page 4.

wxa7115

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Quote from: teosanru on December 25, 2021, 07:20:26 AM

Quote from: Voxo2222 on December 13, 2021, 12:49:49 PM

They borrow money to buy assets before bull run
They use borrowed money to make more money.
If u dont learn how to use DEbt to create wealth then u stay poor all ur life.

U never use loaned funds just to buy things for u if u dont have ur own money enough.
First rule you use loaned money to make money.
Stocks and crypto u borrow always before bull run and sell ur assets even the real estate when markets are booming u pay back the loan u wait the market drops u repeat the process.

If anyone start doing this no profit for wall street wealthy guys anymore thats how powerful is investing money what u borrowed.

Trust me, no matter how sweet this sounds but buying assets using borrowed money and investing them in the market as an individual is not only highly stressful but very risky too, As an individual people generally have just a limited number of income streams. Secondly markets are highly speculative, sometimes you will see them booming every coming month while sometimes you will see them touching new bottoms every month, this way it's hard to predict when is the right time to enter, so if you took a loan and entered into the market at wrong time, it's only god who can save you from all sorts of troubles you are going to face. This Rate of Return > Cost of debt theory looks good only in books and corporates, can't say it suits individuals.

Exactly, an individual cannot really pull off something like this, in theory it sounds great but we know of several cases of members of the forum that tried to do this during the 2017 bull run and it did not work at all for them, they heavily indebted themselves and then they had to sell their coins for a low price.

So not only they lost their coins, they were still indebted to the banks and they had nothing to show for those debts they incurred, so while this sounds great in practice once you try to apply this strategy you will realize it is way more difficult to implement than what you first thought.

Awwal08

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I read an article saying that it is not proper to borrow money for business because is too risky not all the business succeed at the first time then tell me if you went and borrow money to invest at the first time and you fail what do you think in this life we know you have to take risk because only a risk taker survive but not in this aspect, start from the little you have and it will continue to grow.

alpamar99

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Quote from: Gozie51 on December 25, 2021, 12:06:28 PM

Quote from: ?? on ??

Anyway, all blockchain money transfers will take the market to another level and projects like Junca Cash can make everyone rich.

There are many projects that are capable to make someone rich not just one. I was searching on binance exchange and I saw new list of coins that have very good use case. All that is needed is proper research and invest in a right coin, altcoins season is around the corner and is there for wise decision takers to make profit.

The problem today is that so many new people don't really understand how to find really good projects with research and swerve to the hype that makes it difficult for them to be in this scope.
I think to be successful it is not only based on a strong desire and looking for clear sources.
but it must be based on supporting knowledge because if there is a strong desire to succeed but never learn that is not a good thing

jaberwock

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Quote from: Voxo2222 on December 13, 2021, 12:49:49 PM

They borrow money to buy assets before bull run
They use borrowed money to make more money.
If u dont learn how to use DEbt to create wealth then u stay poor all ur life.

U never use loaned funds just to buy things for u if u dont have ur own money enough.
First rule you use loaned money to make money.
Stocks and crypto u borrow always before bull run and sell ur assets even the real estate when markets are booming u pay back the loan u wait the market drops u repeat the process.

Well, this can work because I have seen people who got rich after they borrowed huge sum of money and invested it, and when the profit came out they paid back the money that was loaned to them and they still had much more that was left to them.

So I am not doubting it, because I know that it works. But at the same time you’re taking a really big risk by doing such a thing, because if you happen to lose that kind of money, then you will have loans to start paying and also the interests that follows it. Anyone that is planning to take such a risk should be calculative enough to know whether they are doing so at the right time, if you’re not sure of what you’re about to do, just steer clear from it.

teosanru

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Quote from: bitgolden on December 25, 2021, 05:59:55 PM

Quote from: teosanru on December 25, 2021, 07:20:26 AM

Trust me, no matter how sweet this sounds but buying assets using borrowed money and investing them in the market as an individual is not only highly stressful but very risky too, As an individual people generally have just a limited number of income streams. Secondly markets are highly speculative, sometimes you will see them booming every coming month while sometimes you will see them touching new bottoms every month, this way it's hard to predict when is the right time to enter, so if you took a loan and entered into the market at wrong time, it's only god who can save you from all sorts of troubles you are going to face. This Rate of Return > Cost of debt theory looks good only in books and corporates, can't say it suits individuals.

It's always about limiting your finances to the payment you could make on debt no matter what happens to your investment. I always say that debt is there to create a wealth for you, what 10k worths today is not the same value next year, certainly not in 20 years. I have met with a lot of business owners who have debts that go as further as 25 years, that business will literally be paying debt they made today after 25 years, but that's great for them, why? Because the money they are paying right now may look a lot but after 25 years it will be tiny peanuts due to high inflation all over the world.

So, what you should do is get a debt that you know 100% you can pay with your salary or any other income you know you will pay, do not make your debt repayment dependent on crypto, if you know you get 1000 dollars as salary and spend 900 dollars a month, you know you save 100 dollars. You could always try to get 5k dollars debt, pay 100 bucks a month for 5 years and you got yourself a combined money, by the time 5 year ends your salary could even be bigger than 1000 and you would be paying very little.

There is a very tiny line of difference between gambling and business, Opening up a business by taking debt is entirely different than just taking debt and putting it into cryptos, it's not at all a wise choice to give everything in cryptos or let alone any market by taking up debt. This scenario is only true when the market itself is your business, if you are giving enough time studying each coin and its fundamentals or doing technical analysis and charting of every coin, such a thing cannot be done on the recommendation of others or just because you feel overall bullish about the market, moreover, no bank would give you a loan for putting money into crypto in the first place, non-institutionalized lenders are going to suck you up with interest and technically the returns would be very minimal in that case even if you are lucky to be correct.

bitgolden

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Quote from: teosanru on December 25, 2021, 07:20:26 AM

Trust me, no matter how sweet this sounds but buying assets using borrowed money and investing them in the market as an individual is not only highly stressful but very risky too, As an individual people generally have just a limited number of income streams. Secondly markets are highly speculative, sometimes you will see them booming every coming month while sometimes you will see them touching new bottoms every month, this way it's hard to predict when is the right time to enter, so if you took a loan and entered into the market at wrong time, it's only god who can save you from all sorts of troubles you are going to face. This Rate of Return > Cost of debt theory looks good only in books and corporates, can't say it suits individuals.

It's always about limiting your finances to the payment you could make on debt no matter what happens to your investment. I always say that debt is there to create a wealth for you, what 10k worths today is not the same value next year, certainly not in 20 years. I have met with a lot of business owners who have debts that go as further as 25 years, that business will literally be paying debt they made today after 25 years, but that's great for them, why? Because the money they are paying right now may look a lot but after 25 years it will be tiny peanuts due to high inflation all over the world.

So, what you should do is get a debt that you know 100% you can pay with your salary or any other income you know you will pay, do not make your debt repayment dependent on crypto, if you know you get 1000 dollars as salary and spend 900 dollars a month, you know you save 100 dollars. You could always try to get 5k dollars debt, pay 100 bucks a month for 5 years and you got yourself a combined money, by the time 5 year ends your salary could even be bigger than 1000 and you would be paying very little.

Wawa2013

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Quote from: bitzizzix on December 25, 2021, 05:23:10 AM

Quote from: Wawa2013 on December 22, 2021, 03:33:13 PM

Quote from: Anguwa on December 22, 2021, 02:08:19 PM

I don't think taking loan to invest in cryptocurrency. Trading in general is a risky game so there is no point to advice someone to take loan for crypto investment, it's a rule not to invest the amount you can't avoid to loose, and loaned money will not give proper mindset. Cryptocurrency market is not really predictable, so taking loan to trade is not a good advice.

I once tried to borrow money from a bank as investment capital in crypto, but it didn't meet my expectations. The price of the coins I bought
keeps dropping, while I have to pay my loan installments regularly every month. Finally I experienced financial problems, because the money
to buy daily needs I had to use to pay off debts. Like you said the crypto market is very difficult to predict, so it's not a good idea to borrow money
to invest in crypto. It's better if we invest with small capital, but from the extra money we have, so in the future there will be no financial problems
if the market does not match our expectations.

That's the risk of borrowing money for investment if it doesn't match expectations, and having to pay according to the agreement is very uncomfortable if our finances are not good.
Never risk certainty with uncertainty, because investment is uncertainty that does not necessarily match expectations, it would be better if you borrow money for urgent or very important purposes such as for treatment due to illness or other.

Invest according to your ability even in small amounts, do not force what is not in accordance with the circumstances, borrow money for investment because you will face two risks, loss if your investment fails and still repay your loan under any circumstances.

Fortunately I have learned a lot from my previous mistakes by using money loans for investments. Now I only invest according to the finances
I have, indeed the profit generated is not that big, but it is safe to do. Unfortunately many people often risk certainty with uncertainty, simply
because of the greed that is in them. Eventually people who cannot control their greed will end badly, they will experience financial problems.
Don't be easily tempted to see the big profits shown by people who do have large capital, because everyone has different financial abilities,
we don't need to chase people who have stronger financial abilities than us. Therefore it is very important to be grateful no matter how much profit
we make, even though our capital is small and our profit is also small, but with proper financial management, we can get a big profit if the profit
we make is accumulated.

bitgolden

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Quote from: Voxo2222 on December 13, 2021, 12:49:49 PM

U never use loaned funds just to buy things for u if u dont have ur own money enough.
First rule you use loaned money to make money.
Stocks and crypto u borrow always before bull run and sell ur assets even the real estate when markets are booming u pay back the loan u wait the market drops u repeat the process.

Even you sound like perfect, in many cultures going for loan is still not encouraged. Business wise going for loan must be a common thing but when you do not have definite opportunity then risking with a loan may not be a preferred one in my opinion as well regardless of whatever practices are being followed in my country.

People who are able to manipulate the market might be going for loans because they control everything and they must be confident about good returns out of loaned money which is the reason they are continuously making money and people who are not preferring to manipulate may stay poor like before forever.

qwertyup23

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Quote from: Gozie51 on December 13, 2021, 01:02:24 PM

Getting loan for investment is not always the best investment idea. Yes you can be lucky to profit in it but if you are unlucky then you blame and regret because you are going to pay back even from no where. Cryptocurrency is very risky but lucrative however you can't trust it to get a loan for investing in it. People succeed in it but not all the time, if you miss the buying and selling times then it will stay as loses for you. But it is better borrowing to buy landed property because lands always appreciate in value.

Man, getting a loan in order to enable a person invest is like digging through your own grave. Remember that investing money using a loaned money may not be a good idea due to the nature of such transaction. It can either make or break your entire investment life since it could put you in debt in your entire life.

Though there are risks that we need to take in order to elevate our financial situation into another level, this kind of risk is just too much for someone to handle, given that if you are already drowning in debt, it is better to explore alternative methods rather than to risk another debt incurring.

Gozie51

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Quote from: ?? on ??

Anyway, all blockchain money transfers will take the market to another level and projects like Junca Cash can make everyone rich.

There are many projects that are capable to make someone rich not just one. I was searching on binance exchange and I saw new list of coins that have very good use case. All that is needed is proper research and invest in a right coin, altcoins season is around the corner and is there for wise decision takers to make profit.

Mauser

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Wall Street has so many advantages over the ordinary trader from home who just spends a few hours on the weekend to invest his money. A lot of the big investment managers made their fortunes in the 80s and 90s when the margets where booming. They know each other in the industry and have a lot of contacts to the companies they invest in. There were a lot of cases with insider trading that made investors where rich. Back in the days regulation was much more loose than it is today. For the average Joe it is nearly impossible to gain such exposure and compete against the big firms. That is why we shouldn't try and copy the investment system from Wall Street, we should rather try and trade in our own comfort zone.

teosanru

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Quote from: Voxo2222 on December 13, 2021, 12:49:49 PM

They borrow money to buy assets before bull run
They use borrowed money to make more money.
If u dont learn how to use DEbt to create wealth then u stay poor all ur life.

U never use loaned funds just to buy things for u if u dont have ur own money enough.
First rule you use loaned money to make money.
Stocks and crypto u borrow always before bull run and sell ur assets even the real estate when markets are booming u pay back the loan u wait the market drops u repeat the process.

If anyone start doing this no profit for wall street wealthy guys anymore thats how powerful is investing money what u borrowed.

Trust me, no matter how sweet this sounds but buying assets using borrowed money and investing them in the market as an individual is not only highly stressful but very risky too, As an individual people generally have just a limited number of income streams. Secondly markets are highly speculative, sometimes you will see them booming every coming month while sometimes you will see them touching new bottoms every month, this way it's hard to predict when is the right time to enter, so if you took a loan and entered into the market at wrong time, it's only god who can save you from all sorts of troubles you are going to face. This Rate of Return > Cost of debt theory looks good only in books and corporates, can't say it suits individuals.

bitterguy28

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Quote from: mu_enrico on December 13, 2021, 01:11:45 PM

Not all wall street firms end up success, many were bankrupt, but you won't hear the bankrupt story. The higher the leverage, the higher the bankruptcy risk. And for sure, real estate business has the highest leverage across industries IIRC. What I want to say is, you don't always need leverage. You can be wealthy from side hustle without borrowing any money. The key is reinvesting your excess income, not from debt.

Indeed mate, what we are only seeing in many stories are the successful event but what about the loser? not all of them are gainer there are plenty of losers as well because for someone to earn there must be someone needs to lose.
this is what OP did not understand as he was only looking to the bright story but did not look deep in the dark part.
But of course if you know what you are doing and with perfect timing , everything will go fine but not all of your trials will end up gain as surely there are also losses along the way.

bitzizzix

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Quote from: Wawa2013 on December 22, 2021, 03:33:13 PM

Quote from: Anguwa on December 22, 2021, 02:08:19 PM

I don't think taking loan to invest in cryptocurrency. Trading in general is a risky game so there is no point to advice someone to take loan for crypto investment, it's a rule not to invest the amount you can't avoid to loose, and loaned money will not give proper mindset. Cryptocurrency market is not really predictable, so taking loan to trade is not a good advice.

I once tried to borrow money from a bank as investment capital in crypto, but it didn't meet my expectations. The price of the coins I bought
keeps dropping, while I have to pay my loan installments regularly every month. Finally I experienced financial problems, because the money
to buy daily needs I had to use to pay off debts. Like you said the crypto market is very difficult to predict, so it's not a good idea to borrow money
to invest in crypto. It's better if we invest with small capital, but from the extra money we have, so in the future there will be no financial problems
if the market does not match our expectations.

That's the risk of borrowing money for investment if it doesn't match expectations, and having to pay according to the agreement is very uncomfortable if our finances are not good.
Never risk certainty with uncertainty, because investment is uncertainty that does not necessarily match expectations, it would be better if you borrow money for urgent or very important purposes such as for treatment due to illness or other.

Invest according to your ability even in small amounts, do not force what is not in accordance with the circumstances, borrow money for investment because you will face two risks, loss if your investment fails and still repay your loan under any circumstances.

Sithara007

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The Wall Street guys are rich because of the following reasons:

1. It is easy for them to get loans in order to make investment
2. In case they get profits out of these investments, they make use of various loopholes in order to avoid taxes
3. If by chance the investment ends in loss, then they manage to get at least a part of the loans written off, on top of tax adjustments for the next several years
4. They always manage to get a good chunk of money from various stimulus measures
5. They are able to manipulate the market, as per their investment choice

Dragonfund

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They borrowed money because they are rich but you never made mention of collateral. Every rich person you see borrowing huge amount of funds today I'd because they have something to be used as collateral, you can't borrow when you have nothing to give as collateral, this is power what an average person cannot get.
You see those wall street investors, their ears are good and always a first me information reacher before the public but don't think the news get to them because they are wall street, those information are always bought by them, so before hey leak it, the big boys must have the necessary things cooked by one or two organization ND before it get to you, they will have invested their life savings into it. Coinbaae always come to my mind whenever I hear this wall street of cryptocurrency.

kapalmabur

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Quote from: Anguwa on December 22, 2021, 02:08:19 PM

I don't think taking loan to invest in cryptocurrency. Trading in general is a risky game so there is no point to advice someone to take loan for crypto investment, it's a rule not to invest the amount you can't avoid to loose, and loaned money will not give proper mindset. Cryptocurrency market is not really predictable, so taking loan to trade is not a good advice.

That's right and if you choose to take out a loan to use whether it's investment or trading, you must at least have a strong and well-considered reason,
the risk is also getting bigger for sure and that's the consequence,
What is clear is that I agree with you that taking a loan is not a good suggestion

iv4n

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I am not near Wall Street, but I can guess that game there is like any other game... some people succeed, some people don't! It's popular, so competition is hard, connections are working, being smart is not the only thing you need to be better than others, a bit of luck never hurts! Copy/paste can work, but it has limits! Is it risky, of course, it is, every market has risks!

But why would anyone compare with sharks/wolves from Wall Street... with huge bankroll?! Build yourself with what you know and what you have, develop your skills, and maybe you will have a chance to get further... borrowing money is an option for all of us, and we all can take advantage of it if we know how to do it, but be aware, it has risks... did you do your homework? Do you know what you can expect if things go down the hill?! Just don't make a move if you are not completely sure it's the right one and you will be fine and maybe you will succeed in the future!

Wawa2013

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Quote from: Anguwa on December 22, 2021, 02:08:19 PM

I don't think taking loan to invest in cryptocurrency. Trading in general is a risky game so there is no point to advice someone to take loan for crypto investment, it's a rule not to invest the amount you can't avoid to loose, and loaned money will not give proper mindset. Cryptocurrency market is not really predictable, so taking loan to trade is not a good advice.

I once tried to borrow money from a bank as investment capital in crypto, but it didn't meet my expectations. The price of the coins I bought
keeps dropping, while I have to pay my loan installments regularly every month. Finally I experienced financial problems, because the money
to buy daily needs I had to use to pay off debts. Like you said the crypto market is very difficult to predict, so it's not a good idea to borrow money
to invest in crypto. It's better if we invest with small capital, but from the extra money we have, so in the future there will be no financial problems
if the market does not match our expectations.

Renampun

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Quote from: Voxo2222 on December 13, 2021, 12:49:49 PM

...

Sounds easy but hard to implement...

Everyone's needs and difficulties are different, Many are in debt because sick, businesses are destroyed or to start a business. I once tried to borrow money from the bank and then gave it to crypto-assets but before the asset I bought went up, I had to sell the asset to pay for my child's hospital, I ended up in debt at the bank and my assets were sold. so always prepare safe funds before going into debt at the bank.

Topic: This why wall street are rich and you are poor - page 4. (Read 949 times)