Topic: What's your advisable source of capital to use for trading. - page 2. (Read 644 times)
For what op said, I don't think the money used for trading makes a difference or that it adds additional inspiration. I just think Op entered the right trades at the time he used loan money to trade not that he got an additional skill or because maybe the market understood it was borrowed money, nope !
My capital in trading was from my signature campaign payments. So far, I am rolling that as my funds in both bitcoin and altcoin tradings. But I've never tried borrowed money as a fund in trading, it will be very hard to recover if the market suffers from long bear and the problem is that it isn't your own money. It's better if you buy bitcoin with your own salary even if it will dump, nothing to worry but you can just hold it even longer.
The source of capital for trading is not much important to me. What I consider more important is if I have the ability to make money from trading. If I am sure I can make money from the market I don't care using my salary or even taking loans from Bank to fund my trading account which I know many people do that. It all gets down to how skillful you are and the confidence you have in your trading strategy.
Don’t assume that many people does that, I believe that if you take a survey now and ask how many people would encourage loan, you will see that only 10 percent of the questionnaires will support loan, loan is not a good idea at all, and no matter how great you are or skillful you are, loan is too risky. People do make mistake, and you can never know when he mistake will come, even the so called professional trader will never boast of making mistakes sometimes in trade that usually do cost them a whole lot. Imagine you making some huge mistake that will make you lose your trade, if it was your money, you will only feel the pain of losing, but with loan, you will not only feel the pain, you will also start getting worry about the loan also. Your salary is still quite okay, that is what I use also.
For the traders here, have you tried trading with both source of capital, which is your favorite and will be your advisable source of capital based on experience?.
If you borrowed your funds in trading, you will be pressured and at the same time motivated because you need to pay the loan you borrowed in a certain time and because of this you will be more focus and dedicated in trading. If you are using your own capital in trading, there is not that much pressure in it because it is your own money. I think both of them has both pros and cons although I didn't borrowed any money yet for trading. I only use my own money in trading. The source of capital for trading is not much important to me. What I consider more important is if I have the ability to make money from trading. If I am sure I can make money from the market I don't care using my salary or even taking loans from Bank to fund my trading account which I know many people do that. It all gets down to how skillful you are and the confidence you have in your trading strategy.
Don’t assume that many people does that, I believe that if you take a survey now and ask how many people would encourage loan, you will see that only 10 percent of the questionnaires will support loan, loan is not a good idea at all, and no matter how great you are or skillful you are, loan is too risky. People do make mistake, and you can never know when he mistake will come, even the so called professional trader will never boast of making mistakes sometimes in trade that usually do cost them a whole lot. Imagine you making some huge mistake that will make you lose your trade, if it was your money, you will only feel the pain of losing, but with loan, you will not only feel the pain, you will also start getting worry about the loan also. Your salary is still quite okay, that is what I use also.
The wrongest source of capital you can ever use of trading is loan, loan is a risk that is not necessary, you might be getting away with it right now but the day it will burnt you, I hope you don’t come crying back to us to look for solution because by then, it would have already been too late for anyone to help you.
When it comes to cryptocurrency investment, people would always advise you to trade with any money that you can afford to lose or let go off for a very long time and if you look at loan, loan does not meet any of the above suggestions. It is better you take your time to safe and then use it for trading, cryptocurrency is a volatile market and what if something happens to that coin you are trading, how would you pay your loan back.
When it comes to cryptocurrency investment, people would always advise you to trade with any money that you can afford to lose or let go off for a very long time and if you look at loan, loan does not meet any of the above suggestions. It is better you take your time to safe and then use it for trading, cryptocurrency is a volatile market and what if something happens to that coin you are trading, how would you pay your loan back.
Margin trading is a good instrument if you don't take too much risks, but lending money on lending boards like you do isn't right approach. You will never earn and you will be so stressed trading with loan.
If you have track record, then you can join copy trading service, prove your skills and big money will find you
If you have track record, then you can join copy trading service, prove your skills and big money will find you
I have bought my funds from my salary and few of my savings. But, whenever I face losses I remind myself that I should now take off my savings for trading. I think this a very subjective thing. It completely depends on individuals skills and capacity.
Completely agree with you.
In short i too will do the same.
Savings are really helpful in order to get up from the losses.
For trading we use some of our savings and when we get profit, we take the principal amount first and trade with the little profit.
This is the way, i do oftenly.
I use my own capital to start trading, actually I'm not a day trader I only try to trade when I guess the market is suitable for me (from my knowledge) to trade such as when bitcoin price continue to increase from $5000 to $13500, I took money from my holding especially from my investment in altcoin and I made it to trade in altcoin and the result was I got a good profit at that time. In other hand, I never tried to borrow money especially in form of bitcoin. I just affraid when I can't pay on time my account will be the target and actually I won't have a comfortable feeling when I trade.
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IMO trading in the volatile market with borrowed money is not correct.
Don't think, "Not correct" is the right word to use. The idea of using borrow fund motivates me although I don't take loans i can't afford to payback. The whole idea behind the loan is, it puts me under pressure and I do quite well under pressure then I do when I'm in my comfort zone, in this case my personally funds. Like I said the whole idea of personal funds give me the impression I got nothing to lose as I'll just result to hodling the bought coins if the trade doesn't go as I planned.
I've only ever traded my own capital as well; I did try to trade on borrowed funds a long time back and it just didn't work out too well because I was under extreme pressure to make good trades and I ended up folding under the pressure. For that reason alone I would suggest just saving a bit of money every week or so and putting it aside for trading if you're able to do that.
Rather than use borrowed funds as a source of motivation, i think setting daily, weekly and monthly targets is much better whilst using personal capital. Whenever i do not achieve my daily or weekly targets, i try to work harder the next week to achieve what i lost in the previous week.
This method works for me.
What helps me is that i take small profits daily rather than wait for a 20-30% profit. It helps me project the profit a such achieve over a given period and i try to work toward that goal.
It's not an easy thing to do but you have to look for something that motivates you, perhaps your dream house, ride etc.
This method works for me.
What helps me is that i take small profits daily rather than wait for a 20-30% profit. It helps me project the profit a such achieve over a given period and i try to work toward that goal.
It's not an easy thing to do but you have to look for something that motivates you, perhaps your dream house, ride etc.
Like 10 % of your capital am out that you got for investing and to the cryptocurrencies, never invest your saving amount at the salary amount which needed to pay your your weekly or monthly bills in near future because you are not going to make much profit in very short time unless you are very lucky, show investment capital should be your trading capital as well.
Few weeks/months back before the very first bitcoin price spike that lead to $10,000+ per bitcoin, I did picked interest in trading once again since the market was on a standby (no major downward or upward price movement). I needed capital so I did apply for loan on lending board (which was successful). After I have gotten my capital, I began trading, my initial target was bi-weekly trades, and my first attempt was very successful, second wasn't that great but... To cut the whole story short, I notice i tend to do quite well with borrowed capital when trading then personal capital.
For the traders here, have you tried trading with both source of capital, which is your favorite and will be your advisable source of capital based on experience?.
For the traders here, have you tried trading with both source of capital, which is your favorite and will be your advisable source of capital based on experience?.
Trading on borrowed capital sounds difficult psychologically and might make me too risk averse. Whatever works for you though, as long as you have a way to repay the loan if you lose the principal. For some people, trading with lent capital might provide the pressure/incentive needed to avoid trading recklessly. Maybe.
I only like trading my own capital. I've been staked by investors before (PAMM) but it's not really my thing either. My capital, my risk, my profits.
When it comes to trading especially bitcoin, we all have motivation, something that inspired us to try our very best to profit from every trade. Mine involves trading with borrowed funds. I did notice sudden differences when I'm trading with a capital obtain through loans (borrowed capital) and that of my personal income. Capital gotten from my personal income, tend to keep me in my comfort zone which is something I'm not a fan off. Subconsciously i tell myself, "No worries if the trade don't go as planned, I'll result to hodling". But when it involves a loan capital the energy in me is always different.
Few weeks/months back before the very first bitcoin price spike that lead to $10,000+ per bitcoin, I did picked interest in trading once again since the market was on a standby (no major downward or upward price movement). I needed capital so I did apply for loan on lending board (which was successful). After I have gotten my capital, I began trading, my initial target was bi-weekly trades, and my first attempt was very successful, second wasn't that great but... To cut the whole story short, I notice i tend to do quite well with borrowed capital when trading then personal capital.
For the traders here, have you tried trading with both source of capital, which is your favorite and will be your advisable source of capital based on experience?.
Few weeks/months back before the very first bitcoin price spike that lead to $10,000+ per bitcoin, I did picked interest in trading once again since the market was on a standby (no major downward or upward price movement). I needed capital so I did apply for loan on lending board (which was successful). After I have gotten my capital, I began trading, my initial target was bi-weekly trades, and my first attempt was very successful, second wasn't that great but... To cut the whole story short, I notice i tend to do quite well with borrowed capital when trading then personal capital.
For the traders here, have you tried trading with both source of capital, which is your favorite and will be your advisable source of capital based on experience?.
Of course, trading with loan money will provide a different motivation than when you use our own money. The desire to quickly get a profit so that we can immediately repay the loan will certainly be a priority and usually we will be a little rushed. If we are lucky, we are safe, but if we are out of luck, maybe we will take longer time before getting a profit, which of course will extend the time for us to repay the debt. I myself do not want to trade with loan money. It'll be a double risk tho! The capital from our spare money would be better to use and it's less risk.
Well, trading with borrowed money would probably work if the borrower can afford to pay back. If the borrower can't afford the borrowed funds, he will be under extreme pressure and may end up making rash decisions during trading.
It's just not advisable for people who cannot afford their loans to trade with them. If the market makes a deep dive and stabilize at the bottom, it going to be big problem for those trading with borrowed funds they can't afford to pay back.
It's just not advisable for people who cannot afford their loans to trade with them. If the market makes a deep dive and stabilize at the bottom, it going to be big problem for those trading with borrowed funds they can't afford to pay back.
My only capital to do trading is from bounty rewards and contests. I wouldn't ever to use money from loan to trading because this kind of business have risk too and will be bad if we lose in trading and can't pay our loan.
For the traders here, have you tried trading with both source of capital, which is your favorite and will be your advisable source of capital based on experience?.
I never try both of them because all of my trading activities come from my personal income from a bounty or may salary IRL.
for me using a borrowed capital, i will never try that because of i afraid if i lose it from trading but if you are skilled enough to trading maybe you can borrow some money that you can cover using your personal income if you lose it on trading.
Investing and trading is the main source of income for most of the people here, and I think they are trading for a long time now so I think that it is.
I think I would agree that don't take a loan for trading. I did read that one on this thread but also that is a suggestion of my friend in the past. The only reason he said to me is that if I will be loaning money, use it anywhere else and not in trading or investing since you are risking that money and that is not a 100% profit, that is like gambling, of sorts.
I think I would agree that don't take a loan for trading. I did read that one on this thread but also that is a suggestion of my friend in the past. The only reason he said to me is that if I will be loaning money, use it anywhere else and not in trading or investing since you are risking that money and that is not a 100% profit, that is like gambling, of sorts.
I never use a loan to help me to start trading. I was fortunate that in 2013-2014, I can get a free coin from many faucets website, and I can use that free coins to start trading. In that time, I can earn so many bitcoin and altcoin in few months, and I don't use my own money to start trading. From that, I can slowly to collect so many altcoins for trading and saving more bitcoin until now, and that helps me to continue trading without borrowing money from others. I only think that if I use the money which I borrowed, I will get trouble to pay back the money because I don't have a high-skills in trading and I still getting lose from time to time. I think borrowing money will not a good way for me.
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