Topic: What's your advisable source of capital to use for trading. - page 3. (Read 644 times)

I would never advice someone to take a loan for trading. After all trading is something that needs you to be able to hold that money for a long time, basically to get a proper price to buy bitcoin. Because that entry point is crucial in determining your exit strategy and profit thereafter, you would want to use your own money to trade and not someone else's.

Secondly, do not invest more than what you can lose. I cannot emphasize that enough, because once you have made a mistake and you start to regret it, a vicious cycle of depression and anxiety will start which you will not be able to break unless you have faith and emergency money at hand. These markets are very volatile and unpredictable such that investments should always be made strictly within limited amounts of incoming money.

Trading with money on a loan is very risky move and could end badly for you so you could end up as a double looser.
But all that depends on how big the loan actually is and how wrong your sale or buy order end up to be.

You could also end up as a big winner but that kind of situations rarely happens twice in a row so i would call this kind of stuff pure gambling with borrowed money.

This could be the worst suggestion I have ever seen regarding finance. You suppose having loan and having to face the problem of "if I can't make money I will not be able to pay my loan" as a good thing? That will give you motivation but motivation will not help you in a bear market or it will not help you if your money gets hacked or anything other than these two that could potentially happen.

Loans are the worst things you can get unless you are absolutely sure you will make more thanks to it, not just in crypto but in general that if you are getting a loan that means you should be absolutely certain it would be beneficial to you, if you are going to spend it on some things I think you will be in big trouble. Hence please do not listen to OP and get a loan just to trade crypto.

I wouldn't recommend any person to trade using money from loans unless of course, they can pay it back even if they got no profits. That's very risky to do so, and I believe the cons outweigh the benefits. You should have a clear goal when you trade and try to discipline yourself with that goal in mind. Holding should never be the goal if you're trading because that's for investing in a long term imo. If you're trading, whether it's swing trading or day trading, you should always aim for profits and tolerance of loss up to some point, and never resort to holding when you fail.

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.

Literally as a traders we must have fund for us to make an actual trade, right?
I think it doesn't matter, because as long as you are capable to do an actual trade in the market
and able to make money in it, for sure you can do trade anytime you like.

I understand, and this is also a way for me to become more responsible for my financial investment.
I have tried it, but everything seems too much pressure for me. Because I'm a newbie, I'm not taught through classes and I have to fight thousands of people.
I think we should still cultivate more knowledge, when it is good enough, we should borrow or call for our own investment fund.

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.

Everyone has his or her own methods that works for him or her when it comes to trading crypto currency and the source of ones capital do have effect on ones trading result or attitude. I do prefer using my hard earn capital in trading crypto currency as that usually gives me confidence in case anything bad happen to my capital as compared to making use of loan for trading will put me under pressure and I really need not to be under pressure while trading crypto currency.

I would much rather trade with personal funds, which I can assume u borrowed from my other sources of income. I'm new in trading so I would need lots of practice and anticipate losses along the way.
I would love to build my skill and capital, so my trading becomes self sufficient, and I can comfortably trade using profits from previous successful ones.

I can see how borrowed capital would be an extra motivation for you, I think not everyone works well under pressure.

The difference here is that you got motivated when you do make use of borrowed funds since you do know that you do need to repay it that's why you do make the best of your trades.

Unlike into your own earned money where you do just confidently trade without hesitance yet you know that you do still have the 2nd option which is to hold where this thing isn't applicable if you do gonna need to repay some debts since you would need some profit in a matter of time yet you do have a due date.

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?.