Avoid going for a loan as a trader

[Antotena]

The truth is that I don’t know how true this story is , but they are folks at there doing stuff like this and even planning to do , but just learn from it . The thing is that you might be good at technical analysis and all that but as long is not your money someone else loaned it to you , you will continue to trade with higher tension which may cloud your judgement , and may lead to losses . Just try and stick with the little you have don’t go for loans, , just stay lock in and stay safe .

I want to share this from experience and not as a trader but a person that has been through loan with different interest rate and the implications. The worst thing you can do as a person is taking loan to start something you have not done before or you have not experienced before is the worst decision you can make financially and to top it up, if the loan is bigger than what you can pay back in month, it will take the grace of God to settle that loan unless you have other source of income.

If you want to take loan, let it be cogent reason and it should be short. If you are trying to trade, start small don't go overboard and take something that is not yours to risk, there are plenty of people that has gone through that route and didn't survive, some committed suicide. If you are trading and you use your money and anything goes wrong, you will feel pain not at the expense of trying to pay back what you don't have, it's wasn't your money in the first place, you will have to pay back.

[Agbe]

So I was scrolling on TikTok ( usually during my free time ) , I saw a post a trader was telling a story on how someone came to his dm , like he knew the person before , the person was like his in big debt that , he uncle directed him to a wealthy man , so he and the man made some deal that every month ending he will be given the man a certain percentage, so the lend him the money which was around $50k according to the trader .

First months he didn’t send the man anything then second months same the man had to contact him during the third months

The bolded part na be wetin I won hammer on. For this life e good make person get integrity, only you willingly sign agreement with person say I go dey remit this amount to you every month if you give me your money. Now them don give you money, 2 months don pass and you never fit honour your agreement. I nor even know the kind trust wey go make me give person $50k usd make him trade for me.

The value of a man is known and measured by a person holding his words serious and making sure that he always keeps what am ever he or she agrees with another person because one thing that I have seen is that the success of any one is linked to how trustworthy a person is because before you can be given a responsibility by other you may st be trustworthy by all

[Youngrebel]

It is very true because this is not the first time things as such happen. There are people who I would say are addicted to borrowing. They borrow money for every single thing. It seems like they cannot do anything without borrowing.
I feel borrowing of money cages people and limits the progress of individuals. All the money you are supposed to use to achieve more you limit it to pay depts as well as interest. If that interest was to be used for your personal business you could achieve more than you ever imagined.
.
Being tied to borrowing and frequently is like you are been enslaved and limits your progress as you are remitting your returns to your slave master (the lender). Try as much as possible to avoid it except it's very necessary and it shouldn't be frequently.

[Egii Nna]

So I was scrolling on TikTok ( usually during my free time ) , I saw a post a trader was telling a story on how someone came to his dm , like he knew the person before , the person was like his in big debt that , he uncle directed him to a wealthy man , so he and the man made some deal that every month ending he will be given the man a certain percentage, so the lend him the money which was around $50k according to the trader .

First months he didn’t send the man anything then second months same the man had to contact him during the third months , due to that pressure the guy was in eager to make some profit then when doing so he pressured the account and he blows it all ( loss 50k wey nor be he own) . Now the man heard about it , then he uncle remove he hand   And the wealthy man jailed the guy then later on they bailed him but the man told him to pay $40k and leave the rest , so now any money that guy worked now is not fully his , he have to keep paying the man till he clear the debt .

The truth is that I don’t know how true this story is , but they are folks at there doing stuff like this and even planning to do , but just learn from it . The thing is that you might be good at technical analysis and all that but as long is not your money someone else loaned it to you , you will continue to trade with higher tension which may cloud your judgement , and may lead to losses . Just try and stick with the little you have don’t go for loans, , just stay lock in and stay safe .

The story has a higher possibility of being true because I have even come across a real-life event similar to this, but the money was in naira, and it’s not this much. Most of the people that fall victim to such cases are due to competition; some are due to greediness.

Some might go to borrow money just because they saw a trader like them spending lavishly, so they also want to feel among forgetting about the first law of trading, which is risk management, and also with a bit lack of patience because if you can stay and invest or trade with your own money, even if you blew your account, all you feel is the pain, as the money belongs to you. But if you borrowed the money, you will feel the pain of the loan and also keep paying for your loss. That is always advisable when investing or trading: make sure you use the money you can afford to lose and avoid competition. In some cases, they will say to reduce your greediness.

[laijsica]

It is very true because this is not the first time things as such happen. There are people who I would say are addicted to borrowing. They borrow money for every single thing. It seems like they cannot do anything without borrowing.
I feel borrowing of money cages people and limits the progress of individuals. All the money you are supposed to use to achieve more you limit it to pay depts as well as interest. If that interest was to be used for your personal business you could achieve more than you ever imagined.
.
Being tied to borrowing and frequently is like you are been enslaved and limits your progress as you are remitting your returns to your slave master (the lender). Try as much as possible to avoid it except it's very necessary and it shouldn't be frequently.

You have given a good example that the borrower is a slave. I agree with you. The lender treats them like slaves and pressures them to repay on time. In my society I have seen upper class people giving loans to lower class people at high interest rates and even mortgaging their valuable property. If they fail to repay on time, they claim it as their own.

I think that putting the poor in debt is probably not intentional because most people want to avoid poverty and no one wants to be humiliated. Actually it may not be fair to say that in the context of everyone, but I think some people consider borrowing as income. And most of the time reckless gamblers gamble with their loans and plan to repay them by earning from gambling but the opposite happens to them.

In my experience, it has been observed that the amount borrowed by the borrower due to non-repayment on time becomes so huge at a compound rate that the interest is charged several times the principal amount. Therefore the tendency to take loans makes the poor poorer, and if the rich have a tendency to take loans they should be abandoned otherwise there is a possibility of huge financial losses.

[Rockson1]

Borrowing money is not a wrong idea but what you're borrowing such money for could be the problem but if it's in a good investment asset which you have done your background check on it, then you're good to go (it's called good debt). But the one narrated in the OP which is about borrowing to trade or gamble, that's bad debt and it can ruin you. It's inevitable you wouldn't be under pressure gambling or trading from a loan money because you'll eager to meet up deadline.

With the little idea I have on this, I think borrowing isn't totally bad, it all depends on what you actually want to make use of the loan for that matters, loaning should be done with a strategic plan, it is not advisable for anyone to wake up to access a lone for unnecessary reason, it should be for good investment just as your post have outlined to be, one thing people should always have in mind to borrow is the fact that the money they are accessing ain't free, it comes with a certain amount of repayable interest that may be consequential if one defaults, so with this reason alone, anyone seeking for loan would've known that preparation should be on ground for reaoyemant and I believe that the only way this repayment can be made is by investment is something that profit oriented to avoid defaulting on the terms that was signed in the agreement.

[Agbe]

Trading has a lot of risks, even though there's a big distinction between trading and Gambling doesn't mean that a trader shouldn't think like a gambler...you have to be ready to lose at anytime, having this thought in mind would remind you not to overstep and take stupid risks..any money that goes into your trading can be lost, borrowing money and trading with it is very risky especially when you have no alternative of paying back.

yeah that's true as a trader you should have it at the back of your mind that it's not every time that you will make gain so preparing your mind in time for the worst will be helpful as it will give you a guide on how to go about your trading gambling and trading even though are not thesame has a lot of similarities and one common factor that connects the two is losses

[POPOLUV]

One major reason why i will always advice my follow members of these great local board concerning taking a loan as a trader, is the high rate of the compound interest involved in that loan you will apply for, sometimes you will end up paying times two of the loan you have taken, so avoid from embarrassing yourself in anywey i will advice that you should avoid taking loan as a trade and if you can sell any of assets that can't effect you in future, it could be more preferable than taking loan that you can't meet up to pay back when the time is due.

[adultcrypto]

Trading is very risky and can result in complete loss of the money deposited. Ignoring the rule of thump about trading that we should only trade with what we can afford to lose could be disastrous. Taking a loan to trade is definitely trading with money we cannot afford to lose, it does not always end up well because it even put the trading in a bad state of mind because of fear of losing the money. This will lead to mistakes that will eventually make the trader to lose the money.

[Chilwell]

Trading is very risky and can result in complete loss of the money deposited. Ignoring the rule of thump about trading that we should only trade with what we can afford to lose could be disastrous. Taking a loan to trade is definitely trading with money we cannot afford to lose, it does not always end up well because it even put the trading in a bad state of mind because of fear of losing the money. This will lead to mistakes that will eventually make the trader to lose the money.

Trading even with your own money can be complicated sometimes, talk less of borrowing money. The idea of "trade with what you can afford to lose" clearly stated that you should be mindful of the amount of money/ fund or capital that you are going to use to trade, even if the money is yours, because of how trading normally works. If a traders borrow money to trade and they lose he or she will be the one to suffer the consequences of their actions. Because in trading two things must happen either you make profits or you lose. It is very important to be responsible and wiser in terms of trading.

[HajiBagi]

If you borrow money from someone, do not use it to trade or gambling. It will be like you can make money from it within a short period of time but the money will be lost within a short period of time instead.

$50000 is enough to start a good business. Why trading? All I see about it is someone that is not patient and looking for fast money but instead he got into trouble.

This may not be true but there is possibility that something like this can happen.

Thank you my brother, you think am well before you talk, me as i dey like this person no fit just say him go borrow me money wey be say e reach $50k and I go think say I will go use am do trading, waiting happen to many business wey be say if I use the money do I will get times 2 of the money? For me oh na the person cause all waiting happen to him to himself because that kind of money go reach to settle down with better business and still be paying the person that give him the money gradually.

Some people are the one that use to cause problem for their self and I think the reason why some people dey do that thing is because they don't use to think when money enter their hand, if money enter some people hand they will be spending it anyone, according to the story the guy say na trading but I still dey sure say no be only trading but only God knows.

[Mpamaegbu]

First months he didn’t send the man anything then second months same the man had to contact him during the third months , due to that pressure the guy was in eager to make some profit then when doing so he pressured the account and he blows it all ( loss 50k wey nor be he own).

Dat dude nor be profitable trader to start with. Maybe him don use demo account practise for months and dey see how d account take grow com believe sey im go fit do d same thing with live account. Im nor sabi sey demo and live nor be d same thing. Demo nor get emotion tied to it. Demo na dead account just as d oda wan na live. By d way, a trader wey dey profitable b4 accepting d $50k supposed record profit at least in d second month.

Just try and stick with the little you have don’t go for loans, , just stay lock in and stay safe .

Persin wey neva try am b4 go think sey na bad advice you give there oh but na d honest truth you yarn there. Nothing dem dey add.

[Berryfolia]

First and foremost trading is a risk on its own, den you still have the gut to risk yourself again with loan,automatically that is 2 in 1 risk yuu dey take like diz.
Omo i can’t advice even my worse enemy to indulge in such act because the outcome will not be nice atal,if you don’t have enough money to start trading,you can as well start with you what that is at your own disposal and it must be an amount you can afford to lose incase of any eventuality.

If you eventually borrow money to trade,ah swear emotions will not allow you to rest and it will make you lose most of your trade because of fear.

Sustainable and a profitable trader don’t loan to trade,because;

1.It will instigate fears (ie) making you to lose confidence because of fear of losing someone money.

2. It will destabilize you totally making you uncomfortable when trading.

3.It will pushe you to aggressive trading,most especially when you’re at the point of recovery after huge lost.

4.It induce you to open unnecessary entry when trading etc

Please future trader don’t involve in this mess.

[Chilwell]

One major reason why i will always advice my follow members of these great local board concerning taking a loan as a trader, is the high rate of the compound interest involved in that loan you will apply for, sometimes you will end up paying times two of the loan you have taken, so avoid from embarrassing yourself in anywey i will advice that you should avoid taking loan as a trade and if you can sell any of assets that can't effect you in future, it could be more preferable than taking loan that you can't meet up to pay back when the time is due.

There are a lot of reasons why a trader shouldn't take loans for trading. what you said about the compound interests is undeniable and that is the fact. But apart from compound interest, borrowing money or taking loan to trade can has many effects on a trader. Because from the look of things, trading is all about loosing or winning. And a trader must win and also a trader must loss. So in a situation whereby someone took loan to trade and loss at the end of the day, things are going to be more complicated, because you must pay back the creditor no matter what happened. And if you are depending on the profit that you make and you are hoping to pay back after successful trading and you find yourself loosing, what did you think will happen?

The situation is going to be more difficult for you and you may end thinking about it all the time. And it may affect you economically, physically, mentally, socially and psychologically. And it cause you your emotional stability, leading to stress, anxiety and frustration.
In a situation like this, you will have a lots of expenses to cover, paying back the debt, +the compound interest, and the hospital bills. And sometimes it also caused some people their lives.
 Isn't this a great disaster?

So its really advisable not to borrow money or take loan to trade to avoid all the kind of challenges.

[DiMarxist]

Well, this is a big situation and it is unfortunate that something like this is happening, first you don't borrow loan to start training, well some have done it and luck shined on them, but  a good trader will never advise anyone to take loan, the truth is when you take loan the possibilities of too much emotional involvement will be seen. More also from the story the guy was not even working to say he has income coming in monthly, the problem with some traders is they just concerntrate on the benefits alone and neglect the possible problems.