Trading With Borrowed Funds!!!

[Mr. Magkaisa]

Actually it's very risk when you see people who come into gamblling without to take an adequate measure, everyone knows very well that trading is not supposed to involve the aspect venturing into the investment with s borrowed money, so i believe that the involvement of borrow and trade may indirectly lead some people into problem.

In fact, I think a loan can get someone straight into trouble, especially when the borrower and lender have agreed to a repayment contract. So far I'm not interested in any loan, and I hope I'm not doing it for any purpose including trading. Trading should be a way to gain profit and minimize the risk of loss, but if someone feels he is capable and responsible for repaying his loan on time then I never think it's a problem, especially for himself.

    - You're right mate, but if you have enough knowledge about the trading activity here in cryptocurrency and you know yourself that you can grow it, I think that's fine too.

However, if you take a loan without knowing anything about crypto trading, that's the wrong and high percentage that is only at risk for the money you borrow for sure. This is the reason why debt is not good for conducting trading.

[RockBell]

It is true that some people have become rich through crypto trading in recent times. But considering the high risk involved in trading, do you think it's proper/wise to trade with borrowed funds as your capital irrespective of your trading experience?

Not everyone can have the same luck just like those who borrowed funds to do trading and got rich. Trading is risky and there's always a possibility that you could lose your funds in it so borrowing will be risky since you won't have an assurance of paying back your borrowed money. It will be better to save and allocate enough funds for trading than borrowing it. I haven't tried using borrowed funds in trading because I don't want to face conflicts and consequences in the end.

The risk is increasing seriously increasing so making a decision of taking is not a good one at all, the investment takes longer to actually start making profit, spot trading is even 10 times better than futures which have all the risk packaged in one box but even at that I wont also advise anyone to take loan to invest in bitcoin and another important update is avoid altcoins.

[cloirecrom]

NO way, trading without the required skill and experience is = gambling.

[Smartprofit]

It is true that some people have become rich through crypto trading in the recent times. But considering the high risk involved in trading, do you think it's proper/wise to trade with borrowed funds as your capital irrespective of your trading experience?

In my opinion, it is not necessary to trade cryptocurrencies using borrowed funds. 

The crypto industry is a very risky business.  There are a lot of successful hacker attacks, software vulnerabilities, bankruptcies and other unpleasant events in the field of cryptocurrencies.  The use of borrowed funds further increases your risks. 

At the same time, the price of cryptocurrencies is characterized by high volatility....

This means that even without the use of borrowed funds, the trader has every chance to multiply his initial capital.

[Cantsay]

Most times using borrowed money for trading can prove to be a smart decision if you are not on the loosing side of the trade, it all comes down to risk and in life taking risks is not a strange thing to winners,

Yeah, we all know that life itself is a risk but that doesn't mean we shouldn't analyse the kind of risk that we intend to involve ourself in.
For me, if the borrower has an alternative way to payback the money if he/she ends up losing the money during trading. One should not just do something all in the name of "risk" proper analysis should be carried out, list out all the Pros and cons that are involved if the pros are more than the cons then you can go on with it but if reverse was the case then you should hold on till you get your own free cash for you to use for your trading.

[WatChe]

In fact, I think a loan can get someone straight into trouble, especially when the borrower and lender have agreed to a repayment contract. So far I'm not interested in any loan, and I hope I'm not doing it for any purpose including trading. Trading should be a way to gain profit and minimize the risk of loss, but if someone feels he is capable and responsible for repaying his loan on time then I never think it's a problem, especially for himself.

Trading swing can go in both directions i.e. you can go up or down. It's very famous saying that "invest as much as you can afford to lose" and borrowed money is something you can't afford to lose. So I m not in favour of investing money that I borrow from someone. If you don't have money simply just don't invest.

[8rch7]

Not recommended when trading with borrowing fund actually all borrowed have to pay interest loan and have varied amount have to pay later, I don't think how expert some one trading in cryptocurrency can't expected or guarantee with profit always, facing problem later when borrowing schedule payment and our assets still drop. Not only paying borrowed fund but also we have to pay several percentage of interest loan.
If don't have capital start trading in cryptocurrency better waiting right moment when having money, never take risk when use borrowed fund for trading.

[Volimack]

There's a lot of threat when trading by borrowing because there will be profit and loss in trading and the rise and fall of the currency prices aren't always the same. If there's a loss also it's delicate to repay the loan. Crypto trading involves investors using espoused finances in a sale to open a long or short position that's much larger than their own capital. It doesn't allow individualities to maximize implicit gains by adding their purchasing power using small quantities of plutocrat.

[Sayeds56]

There's a lot of threat when trading by borrowing because there will be profit and loss in trading and the rise and fall of the currency prices aren't always the same. If there's a loss also it's delicate to repay the loan. Crypto trading involves investors using espoused finances in a sale to open a long or short position that's much larger than their own capital. It doesn't allow individualities to maximize implicit gains by adding their purchasing power using small quantities of plutocrat.

When traders take position in margin or future markets with borrowed money and with high leverage, though potential of increasing profit is very attractive, but it is extremely risky, because in case the market goes against your trading potion, it can result in significant loss & even your account can wipe out completely, if you had not used stop loss to limit your loss. Even if you had used stop loss, still you will not only bear loss but also pay interest plus commission.

Better to avoid trading with borrowed money unless you are well experienced & proficient  in technical analysis & risk management.

[Sterbens]

There's a lot of threat when trading by borrowing because there will be profit and loss in trading and the rise and fall of the currency prices aren't always the same. If there's a loss also it's delicate to repay the loan. Crypto trading involves investors using espoused finances in a sale to open a long or short position that's much larger than their own capital. It doesn't allow individualities to maximize implicit gains by adding their purchasing power using small quantities of plutocrat.

When traders take position in margin or future markets with borrowed money and with high leverage, though potential of increasing profit is very attractive, but it is extremely risky, because if the market goes against your trading potion, your account will be wiped out within no time, if you had not used stop loss to limit your loss. Even if you had used stop loss, still you will not only bear loss but also pay interest plus commission.

Better to avoid trading with borrowed money unless you are well experienced & professionally skilled in technical analysis & risk management.

Even though we are really experts in trading with all our professionalism, I still would not recommend trading from borrowed money. No trade will be profitable all the time, no matter how professional we are. There is money that we have to return that is the problem. Our mentality will be disturbed by that, so that maybe it will make the trades that we do not be as calm as when using our own money which is meant for that. Sometimes using personal money but using money for daily needs only makes us panic a little, moreover, this is money from a loan.

[NicNacCoin]

It is true that some people have become rich through crypto trading in the recent times. But considering the high risk involved in trading, do you think it's proper/wise to trade with borrowed funds as your capital irrespective of your trading experience?

Doing trading with loan is very risky. If one wants to do trading then never do business on loan. Whenever you go into business with credit and you lose in that business, you will be in great danger later on. Always remember to do business with your own money. Even if you make huge losses by trading with your own money, you will not be in danger. And especially, never trade with loans in crypto currencies. It will lead you from great danger to danger that you will not be able to handle yourself later on.

[Findingnemo]

It is true that some people have become rich through crypto trading in the recent times. But considering the high risk involved in trading, do you think it's proper/wise to trade with borrowed funds as your capital irrespective of your trading experience?

Stupidity

Nothing I can say beyond these words if someone is doing as you said, trading is highly profitable as per the paper but even with tons of experience and skills/knowledge it is impossible to achieve consistency in the trading success rate, and attempting that with money is not really yours is taking death leap.

[inthelongrun]

Nah! I do not agree to try trading by borrowing funds. The question alone means OP is new to trading. You are not even advised to trade a big amount because you need to learn a lot first. Trading can be tempting especially if we see those coins that are increasing in price but believe me, it only looked easy and it is easier said than done. Why not try trading with a small capital of like $100 and see it yourself? Demo accounts are not good testing grounds because your emotions won't be tested with fake money. So the best way is to learn and at the same time fund your trading account with a small amount that won't make you cry and mad if it is lost. 

[Cryptomiles1]

Actually if you are a very good trader and makes good profits then there's nothing wrong with borrowing money to trade, but if it happens that you are not a good trader, then I can't advised you to go borrow money or taking a loan to start your trading career.
For a newbies, is not advisable to borrow money to trade because we always hear this advise over here that we should only play with the funds we can be able to risk without any regret at last.

[serjent05]

Actually if you are a very good trader and makes good profits then there's nothing wrong with borrowing money to trade, but if it happens that you are not a good trader, then I can't advised you to go borrow money or taking a loan to start your trading career.
For a newbies, is not advisable to borrow money to trade because we always hear this advise over here that we should only play with the funds we can be able to risk without any regret at last.

You should think twice or thrice or even more on the time that you do consider on taking up a loan because it is something risky that you would make.Trading up with borrowed funds should really be taken seriously
or even with your own funds specially if you do know that you are paying up something basing up with the profits you could make out from trading or the venture that you are currently dealing with.
This isnt something that you would just take a loan and then forget because you do have some obligation which you do need to pay up because if not then it would really be just
adding into your entire problem.

I think it depends on the person who is borrowing funds.  Remember, trading is not gambling.  Trading has methods and ways to assure a good result in trading.  So if a person is a good trader, I do not think that it is a bad idea to borrow money to gain profit from a trade he knows he can get a profit with.  Actually, it is a good start for a good trader to establish his financing capability.  But still we should  still calculate our risk in doing so, if the risk is far better than the result then it is not advisable to borrow money for that trade.

[WalkerIVIV]

I think it depends on the person who is borrowing funds.  Remember, trading is not gambling.  Trading has methods and ways to assure a good result in trading.  So if a person is a good trader, I do not think that it is a bad idea to borrow money to gain profit from a trade he knows he can get a profit with.  Actually, it is a good start for a good trader to establish his financing capability.  But still we should  still calculate our risk in doing so, if the risk is far better than the result then it is not advisable to borrow money for that trade.

there are certainly many ways of trading through textbooks technical analysis but then again sometimes the market condition isn't as simple as that and sometimes trading is somewhat gambling, I think it's always better using money that isn't borrowed funds so in worst case scenario if we lost money we just lost it, unlike with borrowed funds that have interests it will become massive problems overtime.

[Sebas.tian]

Actually if you are a very good trader and makes good profits then there's nothing wrong with borrowing money to trade, but if it happens that you are not a good trader, then I can't advised you to go borrow money or taking a loan to start your trading career.
For a newbies, is not advisable to borrow money to trade because we always hear this advise over here that we should only play with the funds we can be able to risk without any regret at last.

Even though you are a good trader in the community, is not advisable to trade with borrowed money or loan money because it has reduced many potential traders in the community that made many people to learned from their mistakes never to try such thing than to start trading with a little capital. Borrowed money will never allow you to be comfortable in trading, because your mind is how to get the loan or borrowed money back to the owner, which it can lead the trader to sell when there is no time to sell in the market. It's not recommendable for newbies to involve in borrowed money to trade, because it will not bring out what you want in the future than to make you feel bad at the end of the market.

[Pandu Geddon]

I think it depends on the person who is borrowing funds.  Remember, trading is not gambling.  Trading has methods and ways to assure a good result in trading.  So if a person is a good trader, I do not think that it is a bad idea to borrow money to gain profit from a trade he knows he can get a profit with.  Actually, it is a good start for a good trader to establish his financing capability.  But still we should  still calculate our risk in doing so, if the risk is far better than the result then it is not advisable to borrow money for that trade.

there are certainly many ways of trading through textbooks technical analysis but then again sometimes the market condition isn't as simple as that and sometimes trading is somewhat gambling, I think it's always better using money that isn't borrowed funds so in worst case scenario if we lost money we just lost it, unlike with borrowed funds that have interests it will become massive problems overtime.

even people who used to share signals on telegram channels get it wrong sometimes. meaning that not all strategies and trading techniques that can be learned will be as we expect. other factors can move prices that surprise and even contradict our analysis.
there would never be a suggestion to borrow money to trade. this will be bad for our finances. if it's profitable, it's probably still safe. but if you lose, of course, you will face other problems.

[alastantiger]

It is true that some people have become rich through crypto trading in the recent times. But considering the high risk involved in trading, do you think it's proper/wise to trade with borrowed funds as your capital irrespective of your trading experience?

Trading using borrowed money can increase your earnings when things go well, but it can also substantially increase your risk and magnify your losses. Trading properly involves evaluating the potential rewards against the risks. Borrowing money constantly raises your risks because you will always be required to repay it, regardless of how much money you make or lose. It turns into gambling.

[Kiresiura]

It is true that some people have become rich through crypto trading in the recent times. But considering the high risk involved in trading, do you think it's proper/wise to trade with borrowed funds as your capital irrespective of your trading experience?

Trading is inherently risky, and trading with borrowed money is risky as well. Cryptocurrencies as a whole are volatile and in a bear market right now, no one can predict when the market will turn around. It is also difficult to be able to turn the borrowed self into profit, and even end up losing more.