Taking loan to trade is a risky task

[suzanne5223]

Most of my friends had taken loans from my relatives for trading and they are trading since a year, But most of them are in profit even , and a little of them are in loss.

Taking of loan in other to trade is a greedy move and this could also lead to addiction soon or later. This is the reason why the FCA doesn't support leverage trading because the rules of making success in every investment setting are to only invest the amount you can afford to lose.

It all depends upon the market, the person lucks sometime and the strategy the trader is following. All of these things in trading plays an important role and giving success to a trader.

Success in trading has nothing to do with luck but the experience and how well the trader does her homework. Check every successful trader testimony they will tell you they study the market very well before they hit the jackpot.

[rahmatullah9305]

Lending money to trade is too risky and should be avoided. No matter how much like to trade in the crypto space if don't have capital, shouldn't cut corners by borrowing. The market is not easy to predict, especially for beginners who do not have skills in trading, you should do things to get to know the market better by always looking at the market situation. In the future, if  already have new personal capital do invested, this is quieter in trading and does not affect bigger emotions if the market dumps.

[Tumanggor]

Borrowing money for trading is risky because the money you borrow can't necessarily be returned
the desire to win is very big when you borrow money to gamble as a result the opposite happens, you actually lose and may lose capital

it is not recommended to taking a loan to trade but if you are a professional in trading and have a good track record then it is a good move if you taking loan to trading

[Smartvirus]

A lot of persons like to think they all too professional to loose. They often tend to belive that, they are limited only by capitals else, they could have archived a lot and so you have them, taking loans to invest in trades, open trading firms with investment packages to seek funds and propose a regular returns on those funds. Sooner than later, you find them running into troubles as they aren't able meet their targets.

It's the way it is when, your handling people's money. It introduces a different kind of pressure or emotion to your trading. Either you've always profited before or not, your out to face a differen form of constraint in the market and in many instances, it might not be favourable. Trading on a loaned capital isn't any thing good to me!

[Shasha80]

Lending money to trade is too risky and should be avoided. No matter how much like to trade in the crypto space if don't have capital, shouldn't cut corners by borrowing. The market is not easy to predict, especially for beginners who do not have skills in trading, you should do things to get to know the market better by always looking at the market situation. In the future, if  already have new personal capital do invested, this is quieter in trading and does not affect bigger emotions if the market dumps.

Borrowing money for trading is not only risky, it can also cause problems. Especially for beginners who do not have the knowledge and
experience of trading, if they trade using borrowed money, it is certain that they will be in debt. Because volatile markets are not easy
to predict, even for traders who have good analytical skills there is no guarantee that predictions are made accurately. Then borrow money
must pay installments, while there is no certainty of profit generated. So my advice if we don't have capital we shouldn't need to force trading,
 it's better to collect capital first by working, not by borrowing money.
 

[Quidat]

Lending money to trade is too risky and should be avoided. No matter how much like to trade in the crypto space if don't have capital, shouldn't cut corners by borrowing. The market is not easy to predict, especially for beginners who do not have skills in trading, you should do things to get to know the market better by always looking at the market situation. In the future, if  already have new personal capital do invested, this is quieter in trading and does not affect bigger emotions if the market dumps.

Borrowing money for trading is not only risky, it can also cause problems. Especially for beginners who do not have the knowledge and
experience of trading, if they trade using borrowed money, it is certain that they will be in debt. Because volatile markets are not easy
to predict, even for traders who have good analytical skills there is no guarantee that predictions are made accurately. Then borrow money
must pay installments, while there is no certainty of profit generated. So my advice if we don't have capital we shouldn't need to force trading,
 it's better to collect capital first by working, not by borrowing money.
 

When do talks about risk then it would be always be accompanied with danger but of course it would really be having some benefits if it turns out to be good but if not then expect the opposite.
Taking some loan for you to make out some crypto investment isnt bad as long you do able to repay those interest in other sources which do basically means that you wont really be
relying on those crypto investment for you to repay then i could say that it is really just fine but if you do make it as a main source then this is where problem begins.

[DoublerHunter]

not all traders make a profit and it is too risky to trade with borrowed money because we don't know whether to make a profit or a loss. I've heard a lot of incidents like that and it's very risky, they even sell all their assets such as houses to pay off their loans because they experience losses. if you are still a beginner then start with a small capital first, don't be in a hurry to get big results. hold our emotions in order that we are not to be affected by the ups and downs of the crypto market.

^ This is not making a profit for them, this is just gambling.
You gamble your asset that hoping it will double or triple the value when you are successful in trading. But the fact is you have a lack of knowledge that you should not on trading, trading needs skills and knowledge, and if you don't have this much better if you will stay away from trading. That is why we keep giving them a warning or advice, always invest of what you can afford to lose because, in trading, there is no guarantee that you will make a profit. Everything is volatile.

[harizen]

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.

I don't know what thinking do people new to trading consider taking a loan to start trades.

Since they are new, how can they able to understand the pressure of doing trades. They don't have the experience to deal with emotions and stress. How can they make profits if they didn't experience the worst yet? That was a risky move and instead of taking profits out from that loan, they are just adding the stress once they lose all the borrowed money.

Good luck to them and to those people who will attempt to do it.

[Ryder Kudrow]

The crypto market is difficult to predict, and it is not advisable to borrow money to trade. Trading is very risky. Not all transactions can be profitable. Borrowing money will lose more funds when you lose money.

Invest within the limits of your own funds, so that you have the ability to guarantee normal payment of funds even if you lose money in the transaction.

[Theones]

Well its nothing more then a stupidity to borrow money for trading (day trading or short term trading). Trading is no more different then gambling, when you win you win big and vice versa. Even if you have your own money, its advisable not to invest whole amount in day trading rather put majority in Long term investment.
Remember there are majority of traders that end up in loss. Why do more than 80% of traders lose money?

[Ultegra134]

I would never trade or gamble with money that isn't solely mine. Shit happens and then you'll be unable to pay back the loan, if you don't have your own money, it's best not to trade at all. Trading is extremely risky itself, but doing it with borrowed money takes it to another level of risk.

You'll eventually lose a trade or two, you'll get greedy and who knows what your next moves might be.

[lovemycar]

It's not just a risky task, it's more like a fool. Don't underestimate the harvesting ability of the market. Whether you are buying up or down, this is an extremely irrational behavior. Unless you are desperate, ready to meet God at any time.

[Hobo66]

There are so many fluctuations in trading. There is no guarantee whether there will be loss or gain. If you take a loan for trading, and you don't have much knowledge about trading, then you can lose all the money. Taking loan for trading is very risky. Because you don't even know that you will get benefit as a result of this money in trading or loss that money too.

[Eureka_07]

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.

Yep it isn't the best Ideal, specially if it has high interest rate. Honestly recently I thought of borrowing quite large money so we can invest it to blockchain games that we know. We thought about loaning since we are too positive that the price of the token that we could gather will just take over our total loan. Now, the price of the token is in dip. Luckily the loan was rejected since the requested loan amount is just too high and that was just my first loan request.

[otundebis]

I think it is general opinion that you don't borrow to trade,  however,  defi investment in Cryptocurrency market have changed all that.  Actually,  you can borrow to trade, to short,  to buy various type of option and many other financial instruments in defi!  Borrowing has become a tool for making money in Cryptocurrency and there are still many innovation coming up with borrowing!

[jostorres]

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.

Do not listen to anyone who doesn't understand how loans work. If you end up getting a loan and buy bitcoin with it and assume that the increases would allow you to not only make money but also allow you to pay your loan back, then you are an idiot. However loans are out there to improve your finances, is there a method you can get a loan, use it on crypto, and improve your finances? That means you should take it.

Coinbase took out loans in sizes of whole neighborhoods real estate value, did they fail? They did not bankrupt right? Well, not so far. Look at Wall Street, there are banks that got billions, the whole loan was 800 billion I believe, and they get cash injections in billions every day. Just know why you are getting a loan, if it is a stupid reason then don't get it, if you can justify it then you should get it, that is how the loan world works.

[tvplus006]

Borrowing money for trading is risky because the money you borrow can't necessarily be returned
the desire to win is very big when you borrow money to gamble as a result the opposite happens, you actually lose and may lose capital

it is not recommended to taking a loan to trade but if you are a professional in trading and have a good track record then it is a good move if you taking loan to trading

If you are a professional in trading, then you should already have a decent deposit that will allow you to do without credit funds from the bank. Most often, beginners who do not have a deposit and want to solve this problem at the expense of borrowed funds think about getting a loan. But beginners need to think first of all about gaining knowledge, and not about loans, which they will definitely lose without knowledge.

[crzy]

I would never trade or gamble with money that isn't solely mine. Shit happens and then you'll be unable to pay back the loan, if you don't have your own money, it's best not to trade at all. Trading is extremely risky itself, but doing it with borrowed money takes it to another level of risk.

You'll eventually lose a trade or two, you'll get greedy and who knows what your next moves might be.

Professional traders are doing this but its really not advisable because of the risk in this market and if you can’t really afford to pay that loan better not to try at all and just use your own money to start in this market no matter small or big it is. Borrowing money is a sign of being greed, and without the knowledge you can lose it.

[Scripture]

I would never trade or gamble with money that isn't solely mine. Shit happens and then you'll be unable to pay back the loan, if you don't have your own money, it's best not to trade at all. Trading is extremely risky itself, but doing it with borrowed money takes it to another level of risk.

You'll eventually lose a trade or two, you'll get greedy and who knows what your next moves might be.

Professional traders are doing this but its really not advisable because of the risk in this market and if you can’t really afford to pay that loan better not to try at all and just use your own money to start in this market no matter small or big it is. Borrowing money is a sign of being greed, and without the knowledge you can lose it.

Not just the professional traders, there's a lot of newbies who are taking loans just to start their trading journey and guess what, most of them failed to repay their loans and they are not being hunt by the banks. There's a lot of downside if you start trading thru your borrowed capital and the risk is very high for that so this is not an advisable strategy, you can actually start by just $100 and then make it grow on your own which is more better than to borrow money.

[Hippocrypto]

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.

Indeed, most of us thought that it wasn't best for us to take a loan but that's what's going on with other traders and investors. They'll always making trading almost like that, taking loans without thinking negative behind. Some newbies don't matter as long as they would get profit out of risk. On my personal perspectives, we may get profit but we don't have an assurance for when it would come to us. Banking loans couldn't wait that because we're going to have a monthly amortization which needed to be complied.