Taking loan to trade is a risky task

[Rockstarguy]

The joy in trading is when the money which is been used to trade is owned by the trader. Normally trading is something that is unpredictable, one can't really know or see the outcome if it will be a big loss, small loss or big win, small win. When money that is been used for trading is owned by the trader if there should be loss he may not too feel about the loss, unlike when the money which was been used for trading is borrowed,  in a case whereby the person do not have good source of income.

I know someone who started how to trade about four months ago. He is a beginner in trading, I don't really know how good he is, but to him he may feel he can always make earnings. I think he was so confident in himself, he had to borrow money for trading which he could not make good profit. As a beginner borrowing money to trade is not the best. It is not even advisable to use all the money one has to trade or invest talk much of to borrow to trade.

[livingfree]

It is not advisable for someone to borrow money. It is like borrowing money to gamble. If you're just going to put that at risk without any guaranteed return.

Please, don't do that and don't use others money for it.

Because there is no guarantee.

[DarkDays]

It is not advisable for someone to borrow money. It is like borrowing money to gamble. If you're just going to put that at risk without any guaranteed return.

If a trader is looking to borrow money they either have insider information or they are really good traders, only in these two scenarios it probably won't be as dangerous to borrow money for trading.

But for anyone else outside of these two brackets, just don't borrow money as this is a super risky move where you might end you owing a lot more because trades can be unpredictable at most times and without proper skill and knowledge it would be hard yo make profit - also you don't want to be relying on luck either!

[Johnyz]

Borrow money if its sure profit but in trading, there’s no guarantee on this so its really risky but if you are ready for it, then why not as long as you can still pay that money you can really borrow. Its like putting up a business where mostly borrow funds from the banks, and they are paying it you just have to know the strategy in trading, and always do your best.

[Ziskinberg]

I know someone who started how to trade about four months ago. He is a beginner in trading, I don't really know how good he is, but to him he may feel he can always make earnings. I think he was so confident in himself, ...

Well, congrats to him. I tell you that he is a lucky person, a beginner with only a little knowledge and experience in trading were mostly suffer losses but that person you've mention did it right. But I'm not sure if he is telling you right or telling lies...

he had to borrow money for trading which he could not make good profit. As a beginner borrowing money to trade is not the best. It is not even advisable to use all the money one has to trade or invest talk much of to borrow to trade.

He did great at first but borrowing money use for capital in trading will be a big mistake and this might end his trading journey quickly.We have to remember that not all the time we got in profit and if you have an obligation to pay the borrowed money in a specific time frame, that surely be bothering and can affect our decision-making. In this case, I'm afraid that the confidence that you have said OP is getting over.

[3la9l_kolbaCa]

I don't recommend to take a loan, this is too risky because we can be sure if we will win with trading specially on complicated situations.
Maybe having savings from your job, would be a best strategy to use, you could save your money diverted to crypto assets like xrp and bnb.

[TinaK]

It is not advisable for someone to borrow money. It is like borrowing money to gamble. If you're just going to put that at risk without any guaranteed return.

Please, don't do that and don't use others money for it.

Because there is no guarantee.

I agree it is not good advice.
It seems you have been hit with a double edge sword if you lose in trading, you will pay the interest and I don't know if you will be able to recover once you maybe lose in trading. Trading is a form of gambling, not an investment, there is no guarantee that you can make a profit in a single day while the interest of the money that you borrowed was increasing each day. Op can give it a try with the affordable money he had and measure the skills he has if he really capable on making money in trading.

[Cornia]

It is never right to take a loan to trade. And for a newbie trader, it's never right. Trade is a game of money. There must be win and loss here. And whatever the win or loss, you have to repay the loan. If you lose money in trading, you will have extra pressure to repay the loan.

[Oceat]

Taking a loan is always a risky task especially if you are a beginner in trading there's no chance you could make more profit with the money you borrowed since you don't have an experience in trading. This topic is already been discussed many times so this should teach newbies to avoid using or taking a loan just to trade or invest in crypto.

If you don't know the market well you should avoid unnecessary actions to further damage you in the future. Trading is different from gambling so don't take it lightly just like you were buying and selling because crypto currency market price has a higher volatility movement.

[kawetsriyanto]

As a beginner borrowing money to trade is not the best.

If you are a beginner, you don't need to hurry trading/investing with a big amount of money. Borrowing money to trade/invest is a very bad idea for the beginners, even experienced traders/investors will think twice before deciding to take loan money. Crypto market is very unpredictable, we don't know what's to happen in the market tomorrow. If the market is bleeding for a long time, it will be a big problem if you are using loan money. As a beginner, it is better to trade/invest with a small amount of money, use the money you can afford to lose. If you still have no money, just focus on learning first.

[agustina2]

The joy in trading is when the money which is been used to trade is owned by the trader. Normally trading is something that is unpredictable, one can't really know or see the outcome if it will be a big loss, small loss or big win, small win. When money that is been used for trading is owned by the trader if there should be loss he may not too feel about the loss, unlike when the money which was been used for trading is borrowed,  in a case whereby the person do not have good source of income.

I know someone who started how to trade about four months ago. He is a beginner in trading, I don't really know how good he is, but to him he may feel he can always make earnings. I think he was so confident in himself, he had to borrow money for trading which he could not make good profit. As a beginner borrowing money to trade is not the best. It is not even advisable to use all the money one has to trade or invest talk much of to borrow to trade.

Even an experience traders doesn't have an assurance too that he can take profits out from the loan. If a beginner will do it, he is just adding some big problems on his mind as we know loans have fixed payout and terms.

If he loaned to a friend or close one, maybe it's all about verbal and no terms when they should pay. But when a trader loaned to an lending institution or lending service/business, it's mandatory to follow the payment terms. Crypto is so volatile that the loan amount might become zero in value in just matter of few days. Too risky and everyone should stay away with that.

[GreatArkansas]

This can be related to, "taking a loan, just to gamble". There is always the risk, even when you do some business, you still can't guarantee the profits, and there is always a chance that you will lose.
So, the famous quote comes here, "Invest what you afford to lose". Which is indeed correct and on the point.
Try first to learn more about trading, build your foundation and once you have extra money to trade in, use it without borrowing so you will not get rekt with interests if you are planning to loan or borrow money.

[Wexnident]

It's never advisable to borrow money under any circumstances tbh, whether it's for trading or not. Like for real, unless absolutely necessary like you'd die the next day if you don't borrow money, then don't. A loan is like something of a gamble really, it's like you took it since you failed in a gamble, so you're taking another one just to fix the first gamble you did, only to replace it with this one. Plus, it also stresses the one you borrowed from, whether it's a stranger (lending company) or a relative/ friend, it's quite problematic for them as well.

[Strongkored]

If you are someone who relies income only on trading activities then this is very risky especially if you are a beginner, entering the trading world only based on people's success stories without learning that trading especially crypto is not as easy as their story there is a lot to learn and it takes time, sometimes you can lose not only getting big profits, but indeed using borrowed money for trading is not recommended especially when you don't understand the risks of trading.

[Victorycoin]

It is not a good idea to take a loan in trading the market is not stable here if the value of the currency you have invested in goes down it will be difficult for you to repay the loans are not always profitable in some  there is a loss the exchange devalues there will be losses. If the dollar continues to depreciate it is a loss for entrepreneurs it is good if the dollar rate rises suddenly but the crypto market is less sure when the market will go in any direction.

[Masplanc]

Borrowing to trade is not a good idea at all especially with a trader with no strategies and experience in trading. It is very risky , sometimes trading is like a game , wining the game is under probability it's uncertain.

[cheezcarls]

The joy in trading is when the money which is been used to trade is owned by the trader. Normally trading is something that is unpredictable, one can't really know or see the outcome if it will be a big loss, small loss or big win, small win. When money that is been used for trading is owned by the trader if there should be loss he may not too feel about the loss, unlike when the money which was been used for trading is borrowed,  in a case whereby the person do not have good source of income.

I know someone who started how to trade about four months ago. He is a beginner in trading, I don't really know how good he is, but to him he may feel he can always make earnings. I think he was so confident in himself, he had to borrow money for trading which he could not make good profit. As a beginner borrowing money to trade is not the best. It is not even advisable to use all the money one has to trade or invest talk much of to borrow to trade.

Of course, it’s risky. I mean….very risky at all!

It’s not a good idea to loan money for the purpose in using those funds for cryptocurrency trading. When I was broke, even if I wanna do crypto trading or investing into ICOs, I never borrowed funds from my parents, sisters, etc. Instead I found a way in selling unnecessary and important items that I have and doing small side jobs, and I use some of it for investing and trading until I finally had my breakthrough in joining airdrops and bounty programs in the glory days of 2017.

That’s just me of course. But once again yes I have to agree 100% that borrowing money for the purpose of crypto trading is a very bad idea. Coz’ you don’t know where will the price go, as it may go down the wire and stress you up for good.

[tvplus006]

...As a beginner borrowing money to trade is not the best. It is not even advisable to use all the money one has to trade or invest talk much of to borrow to trade.

If trading on the spot market brings you profit, then it may be time to use the leverage provided by the exchange. In practice, this looks the same as a loan received from a bank, but it is just as dangerous and will lead to the loss of the deposit if you do not understand the basics of trading and risk management.

[Ararbermas]

Probably but it depends on the situation in my personal opinion, wherein if you know how trading really works and you know what will be the results afterwards perhaps there's no problem with taking loan to trade. If not and you're out of knowledge then its a big mistake to take loan.. Try to practice your skills in demo account first before anything else so that you know how to handle any situation in trading.

[Smartvirus]

It never strange on how this (taking a loan to invest or in this case, trade on, hope take interest  and eventually pay back the loan) becomes a way to some start for some persons. In fact, I've seen a few individuals who try this and often failed to meet up with the targeted profit.

Taking a loan to start up an investment already places a pressure on you. The pressure of, nothing can or should go wrong as, you not only got profit to make but, a capital to refund and as such, a lose is not an option. Just like that, a tension has started building up and it could make you seek opportunities in the unexpected places, not excluding taking wrong trades with huge lot sizes just to meet up with your target and all that could land you right in the pit hole  you wish to avoid. Its not a very fun thing to do #Taking investment loans.