If we have great ability, is capital from bank loans safe for us to use trade?

[Assface16678]

You’re just trying to misleads your friend man. How do you advise someone to borrow loans and trade with it? Why don’t you give money instead and forgive him when the trade goes wrong? For sure you would not do that but you are advising him to borrow loan. Borrowing money to trade is a very bad idea and you should know that.

Imagine that he lose that money in trade, I hope there will be a means for him to be able to make up and pay it back right? It would be best for him to continue with the $500 he is trading with and keep taking it a little until he grows big. It’s not good to be rushing these things, it’s best to do with what you can afford to avoid regrets.

Not only that we do not really know if his friend is really good at trading, many believe that as long as they win a few trades then they have a system that works but in order to verify that what you are doing works you will need to backtest it against several different markets and compare the performance of your system, most traders never do that so they do not have a clear idea of how profitable, if any, their system really is, so it will be a mistake to get a loan under those circumstances.

Today one of the fastest earning is with the use of trading many people want to be included with this because they think it just easy still there are some essentials needed to win our trades some of them are paying some time just to earn a lot of knowledge first, they need to identify the strategy and techniques how they will win their trades and also avoid having market mistake. If you think you are already confident to the task you are doing and you will win your market income and have a capital better to start your trading right now but if you don't have any capital you can use the bank to get some money for your investment but always make sure all of the transaction happening is calculated avoid getting too much money and lose it that may cause having a debt.

[Mumbeeptind1963]

Nothing's wrong with using small amount for trade, your friend already have consistent profit, is really better than get nothing. You should support him with his decision stay under $ 500 and not use money from bank. Profit is goals but trading is not always about money, there's other side we can get, such as time and disciplines, you can't exchange both with money.

I agree there's nothing wrong to trade by using your loan as capital, but I think it better to used your own money than borrowing and paying it with interest. But make sure you have enough knowledge and put only small anount of divide your money, one for your daily needs and the other for your trading.

[xSkylarx]

I have a friend who has quite great trading skills, almost every trade he manages to make a profit. But I see he always uses capital
under $ 500.If in my opinion he should use a large capital of at least $ 5,000 to get greater profit. I suggest to him to borrow from
the bank as trading capital, but he refused with the reason too risky and insecure. I want the opinion of you members of this forum,
whether to use capital from bank loans unsecured and risky if used trading by traders who have good skills? even though in my opinion
safe as long as we can make a profit and smoothly repay loan installments to the bank.

Your friend knows how to handle his funds well and it's a good thing that he's not relying too much on his skills. We all know that trading wouldn't guarantee us a good amount of profit without risking a huge amount of capital as well. We should still control ourselves from risking a huge capital especially if we'll just borrow it from banks.

[davinchi]

Your thinking is not wrong when loans from banks always force us to pay monthly profits, besides, trading has no concept of absolute success, so we will have a lot of pressure, from making a profit, avoiding loss and paying interest to the bank but we still need to remember that trading is not completely gambling when we have the knowledge, and no investment is 100% guaranteed. If the risk could be doubled, the profits would correspond, even more when we make money in the crypto market, therefore, with sufficient confidence in the skills, this option may still be considered

Yes, trading does not actually have fixed profits but the profits a experienced trader can have in trading are quite higher than the amount of interest we would need to pay so it would always be profitable to take loan from banks at 10% to 20% interest rate and earn 40% to 100% in few months in leverage or margin trading if having experience.

Risk is constant here so you should always have a backup plan before proceeding with any such deal because you might even need to pay excess charges from your pocket if ever you face constant loss by simultaneously hitting your stop loss or liquidation price, etc.

[deisik]

Nothing's wrong with using small amount for trade, your friend already have consistent profit, is really better than get nothing. You should support him with his decision stay under $ 500 and not use money from bank. Profit is goals but trading is not always about money, there's other side we can get, such as time and disciplines, you can't exchange both with money

I agree there's nothing wrong to trade by using your loan as capital

There is everything wrong with that, but this is not what the poster you replied to said. There is absolutely nothing wrong with using small amounts to trade (to each their own), but this has nothing to do with borrowing funds from the bank (whatever the amount). Further, if you need some leverage, you don't have to take a loan from a bank at all. You can just start trading on margin. The effect will be the same since you are effectively borrowing from other traders (or exchange itself)

This whole thread makes no sense if you can margin trade

[dothebeats]

Yes, though riskier than setting up your own business and making sure that you will have something left to sell should you see your capital going bust. I see nothing wrong with it provided that the borrower will have the means to pay foe the capital plus the interest on the bank, but if you got nothing to help you bail out of the mess then I'll probably advice against it. Once you got the loan, it's yours to use anyway but use it wisely--and before jumping into the mess that is trading, better be equipped with knowledge and experience or you will just put the money down the drain.

[beerlover]

To be honest I do understand those people because lets face it, if you wake up every morning, go to work, come back home and watch some tv and sleep and repeat that the simple fact is you will probably not get rich. You have to do something different to stand out and make some extra because the world is designed to keep the working class keep being working class and unless you risk something you will not make any money and will be poor until you die.

However, the way to get out is not to risk the money you do not have but more like risk the money you worked hard to save. Some people literally wake up at 6 am, study a bit about their startup, go to work at 8 am, come back at 5 pm, start working on their startups at 6 pm and work until 2 am to make their dreams work, that is how you get richer, not by taking a loan and trading with it.

[MWesterweele]

To be honest I do understand those people because lets face it, if you wake up every morning, go to work, come back home and watch some tv and sleep and repeat that the simple fact is you will probably not get rich. You have to do something different to stand out and make some extra because the world is designed to keep the working class keep being working class and unless you risk something you will not make any money and will be poor until you die.

However, the way to get out is not to risk the money you do not have but more like risk the money you worked hard to save. Some people literally wake up at 6 am, study a bit about their startup, go to work at 8 am, come back at 5 pm, start working on their startups at 6 pm and work until 2 am to make their dreams work, that is how you get richer, not by taking a loan and trading with it.

For me its depend the situation, for me taking the risk if you have huge money in your hand but if not then dont risk your money particularly if you used your loan for you trade even you have a great ability in trading. Its better to used your own money but dont used all, its better to divide your money.

[BlackFor3st]

I have a friend who has quite great trading skills, almost every trade he manages to make a profit. But I see he always uses capital
under $ 500.If in my opinion he should use a large capital of at least $ 5,000 to get greater profit. I suggest to him to borrow from
the bank as trading capital, but he refused with the reason too risky and insecure. I want the opinion of you members of this forum,
whether to use capital from bank loans unsecured and risky if used trading by traders who have good skills? even though in my opinion
safe as long as we can make a profit and smoothly repay loan installments to the bank.

Even if you are a great trader, as what he have said to you borrowing money from bank just to make a bigger capital is more riskier. Because not all the time you can hit the jackpot even if you have good skills in trading as we are not perfect and time will always come that we can make a mistake.

As a good trader, it will be good if you are patient because your small capital can easily multiply if you have patience therefore there is no need for you to take too much risk by borrowing money from the banks if you have the skills to make your small capital into a big one someday.

[0zero0]

In my opinion, we should never take any kind of loans to do buy something we can't afford.
We have to plan out well and think of every possible risk before actually doing it.
What if your friend takes the loan but suddenly the market crashes and he loses half of the investment.
It will turn out to be a nightmare for him.
Instead he can take out the smaller profits, save it and then use it again in future as a bigger amount to get a bigger profit.

[carlisle1]

I have a friend who has quite great trading skills, almost every trade he manages to make a profit. But I see he always uses capital
under $ 500.If in my opinion he should use a large capital of at least $ 5,000 to get greater profit. I suggest to him to borrow from
the bank as trading capital, but he refused with the reason too risky and insecure. I want the opinion of you members of this forum,
whether to use capital from bank loans unsecured and risky if used trading by traders who have good skills? even though in my opinion
safe as long as we can make a profit and smoothly repay loan installments to the bank.

i usually don't support trading with a borrowed money because for me the risk of losing is doubled since you need to pay for the capital and also the Interest so the time you are trading you are thinking of higher profit to cover the loans and fees and also to gain.

but since you have mentioned Him being a great in trading?then why not try to take a loan but of course with small amount at first because there might have been Luck in his part using 500$ and may change if he uses more bigger capital?

[bearexin]

Lol man loan is not something you’d like to get yourself into. My best advice would be that he should continue the way he’s trading and be contented with what he has. Sometimes loan is a really bad idea, I have been down that road and I will never again in my life take loan again.

Imagine you take loan and you lose it, you’re going to regret ever taking that loan, because they are going to pressure you and whatever you used as a collateral will be used as a way to recover the money for the loan you took. So I will advise you to stay clear from loan and stop giving your friend the advice to take loan, if it doesn’t work out he’s going to blame you for deceiving you.

[AakZaki]

Even a trader who has 90% ability, has a Trading Plan.
One of them is "Risk Management", of course, a trader who has the ability has prepared everything from the source of funds, technical or the amount of risk that will be experienced.

And also a trader always tries to minimize the possibility of loss.  If funds are traded as a result of loans from banks, it will be very risky if you experience losses, of course disturbing the psychology of these traders.

Because as good as any of his trading capabilities I'm sure everyone loses.  So I think it's better to use a minimum fund, the most important thing is to be able to profit consistently.

[conected]

Guys, I already saw that those who take loans from banks are in bad karma.  If you even take a little money from a bank at a certain percentage, even for good deeds or for investments in cryptocurrencies, you risk losing everything And even more.  I believe that it is necessary to look for other opportunities to achieve the goal in order to invest some money in cryptocurrency.  Bank loans are always bad.

- I disagree that bank loans are always bad, although the majority of people borrowing money from banks are falling into a bad situation but don't just look at the failure rate, look at the success rates, with the increase in capitalization, some people have a better financial background through trading, so borrowing money from a bank to trade is still possible. But of course, there is no security when we borrow money, so avoid getting into a situation where we cannot repay our debt, we should choose a loan that is suitable to economic conditions

[Antraz]

Im not much into trading, but actually it crossed my mind this week taking a loan to buy btc , something like 5k 6k.   
Hold those 5k 6k in btc while paying to the bank, and selling it when btc reach 13k 14k.
At current btc prices do you think its a bad idea? With halving coming.

[deisik]

Im not much into trading, but actually it crossed my mind this week taking a loan to buy btc , something like 5k 6k.   
Hold those 5k 6k in btc while paying to the bank, and selling it when btc reach 13k 14k.
At current btc prices do you think its a bad idea?

You don't need a bank loan for that

You could just open a margin position on an exchange like Bitfinex within minutes and get done with that (and pay pennies as interest, for the record). People in this thread seem to be discussing matters (e.g. trading, as per thread title) which they are not even remotely familiar with. I understand when someone considers it outright a bad idea (the point that I entirely support, just in case), but when someone else is seriously discussing taking a loan to buy some bitcoins, that makes me cringe

[Antraz]

Im not much into trading, but actually it crossed my mind this week taking a loan to buy btc , something like 5k 6k.   
Hold those 5k 6k in btc while paying to the bank, and selling it when btc reach 13k 14k.
At current btc prices do you think its a bad idea?

You don't need a bank loan for that

You could just open a margin position on an exchange like Bitfinex within minutes and get done with that (and pay pennies as interest, for the record). People in this thread seem to be discussing matters (e.g. trading) which they are not even remotely familiar with. I understand when someone considers it outright a bad idea (the point that I mostly agree with, just in case), but when someone else is seriously discussing taking a loan to buy some bitcoins, that makes me cringe

Like i said, it crossed my mind.
Im not yet very confortable with trading too. I buy and hold, i got into crypto 8months ago when i was forced to be at home with a broken leg, i pretty much im holding all the little coins i have bought.
I know theres margin trading,contracts but to me thats still too dark for me.

My idea was to make a profit with all the upcoming events, even if i had to wait and hold it for a year or more i still think thats a good solid investment, after all its btc.
It would repay the loan plus i would get a decent profit.

I also know there m8ght be better choises like you said man, but im not confortable with those.

hypothetically speaking

[deisik]

My idea was to make a profit with all the upcoming events, even if i had to wait and hold it for a year or more i still think thats a good solid investment, after all its btc

So how are you going to pay back to the bank?

As you won't be able to hold your bitcoins bought on borrowed money when the time is up and you will have to return the loan. I'm curious if this thought crossed your mind too. If you are going to return some other money (as you seem to imply), then the whole idea makes no sense as in that case you could just buy the bitcoins with that money right away without any loans from any banks

[Antraz]

My idea was to make a profit with all the upcoming events, even if i had to wait and hold it for a year or more i still think thats a good solid investment, after all its btc

So how are you going to pay back to the bank?

As you won't be able to hold your bitcoins bought on borrowed money when the time is up and you will have to return the loan. I'm curious if this thought crossed your mind too. If you are going to return some other money (as you seem to imply), then the whole idea makes no sense as in that case you could just buy the bitcoins with that money right away without any loans from any banks

I would pay monthly, i work unfortunately  
Thing is i dont have that amout of money to invest, even with loan plus fees, lets say btc reach like 15k its very doable right, on a 6k loan i would end up paying 7.2k on a 62month plan to the bank.

Its still profit i  my eyes

Edit. I could buy btc mothly true, but the whole idea was the opurtunity. Btc current price

[deisik]

Its still profit i  my eyes

Your eyes are deceiving you

Given the current price dynamic, you are likely to do better with monthly purchases after all, or, in more concrete terms, with a strategy called dollar-cost averaging. It is a simple strategy following which you regularly buy some bitcoins with a given amount of dollars, no matter what the current price is (hence the name). You can look it up in Google if you are interested in specifics