Trading With Borrowed Funds!!!

[Shinpako09]

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?

It depends if you are already an experienced trader but it doesn't make sense. If you are good at trading, it means you have made a profit already. So, there is no need for you to borrow but since you need to, it means you have zero to little experience. Then, borrowing will not do you any good but cause you more harm. You'll be in debt sooner or later. You should use what you have instead.

Also, your state of mind might get affected during trading since you are using borrowed funds. It's like you are in a do-or-die situation.

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[Hamza2424]

OP I am not sure about your experience with crypto but point no 1 is never invest borrowed money in crypto if you can afford to lose it. Dear took some pity on yourself. Trading is risky and people do trading but dear borrowed investment brings a lot of troubles on board and here you are not only investing you are trading crypto on some time scale imagine if something bad happens in the market and the market falls into the consolidation zone then what 3 months+ times to recover loss only what are you going to do in such a situation.

[Oilacris]

OP I am not sure about your experience with crypto but point no 1 is never invest borrowed money in crypto if you can afford to lose it. Dear took some pity on yourself. Trading is risky and people do trading but dear borrowed investment brings a lot of troubles on board and here you are not only investing you are trading crypto on some time scale imagine if something bad happens in the market and the market falls into the consolidation zone then what 3 months+ times to recover loss only what are you going to do in such a situation.

Would really be coming out into your own senses and its impossible that you wont really be having that consideration and questions that, if i could pay these loans back or not?
If you arent that really minding or stressing that much since you do know that you do have other sources when it comes on repaying the loan then it wouldnt really be a stressful thing
but if you are really just simply been depending with your trading or crypto investment gains on paying it out then it would really be a something risky move for you to do so.
Dont tend to borrow and making it as a capital as much as you could or simply avoid it because it would really be that something risky to take.

[8rch7]

It depends if you are already an experienced trader but it doesn't make sense. If you are good at trading, it means you have made a profit already. So, there is no need for you to borrow but since you need to, it means you have zero to little experience. Then, borrowing will not do you any good but cause you more harm. You'll be in debt sooner or later. You should use what you have instead.

Also, your state of mind might get affected during trading since you are using borrowed funds. It's like you are in a do-or-die situation.

Can't guarantee with how expert and experienced in cryptocurrency trading not always earn profit and not good financial advice trading with borrowed fund. Huge pressure when adopting in my mind borrowed fund for trading with do or die situation give impact mentality, how ever Bitcoin not always stable and bad news with unpredictable moment make us loss controlling.

Since can controlling and have balanced in bitcoin trading, some one can use borrowing for for trading but if can't and loss controlling better waiting moment have financial freedom begin with trading although start wit small fund.

[AicecreaME]

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.

Correct.

And when that happens, you'll be pressure even more to make profits in a very hard market situation, like bear market where a lot of fake outs could happen. Then you'll borrow money again for you to pay the first money you borrowed, then it will just keep on going, unless you know a way out. But ideally, trading with your own money is much better, less burden just in case you lose it all.

[Iranus]

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.

Correct.

And when that happens, you'll be pressure even more to make profits in a very hard market situation, like bear market where a lot of fake outs could happen. Then you'll borrow money again for you to pay the first money you borrowed, then it will just keep on going, unless you know a way out. But ideally, trading with your own money is much better, less burden just in case you lose it all.

Even if we are good traders, that does not mean we will never lose money. When we trade with idle money, the trading psychology will definitely be very different, and we will make the correct decision. But if it is borrowed money, I am sure our psyche will be very heavy and pressured, our decisions will no longer be confident and accurate. Like when you demo trading with real account trading, different trading psychology will produce different results.

Depending on each person's mindset, we will make different decisions, but borrowing money to invest in volatile assets like cryptocurrencies is not advisable.

[martyns]

This can be the highest risk I can ever immagine one to take while trading,and what if you lost the whole money you borrowed in the process of the trading,what will be the outcome?It is putting more depression on yourselve because you will now be a slave to the person that lend you the money.
Borrowing money for trading is one thing I cannot do because I know how risky it is,and I know that trading is not guaranteed at any given time,it's a try of luck,if it favours you,then kudos,but if you lose,then it's part of the game.

[Strongkored]

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?

I know the answer is definitely no because the pressure will be very different when using your own money compared to borrowing, especially if the borrowed money has interest that must be returned, there is a very large chance that it will make life more complicated and experienced traders will never do that because understanding the big risks in trading where losses and gains are equal in size.

[LastKiss]

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?

Absolutely no, never borrow money from a bank or even your friends to use it for trading. It's really risky and very volatile, maybe you can see 5% gains today but there's always a risk to see a 20% dump next month. In my life, I never borrow any money from my friends or even other lenders to use it for trading or even investing since we can't guarantee our winning.

[peter0425]

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?

Never let your self become one of those who cries much because of wrong decisions , if you have no funds to invest in this very risky market? then better to let go, try to find way to gain your own money before putting it inside crypto market because there are lots of things to consider and first to mention the volatility next is Pumping and Dumping,
so if you are not prepared for those then let go mate.

[bitterguy28]

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?

Absolutely no, never borrow money from a bank or even your friends to use it for trading. It's really risky and very volatile, maybe you can see 5% gains today but there's always a risk to see a 20% dump next month. In my life, I never borrow any money from my friends or even other lenders to use it for trading or even investing since we can't guarantee our winning.

I experience this once in my real business  though it is not trading or some online transactions yet I borrowed in Lending to use in my food business but as it progress? the business did not materialize and this leaves me having a debit increasing its percentage each week and it took me at least almost a year to pay off, since then? never that i borrowed any amount for investment but I only borrow for emergency purposed amounting that i can pay back sooner.

[Bushdark]

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.

Using borrowed money to trade is very risky and I would never advised anyone to ever try and use funds that are not there own to trade the market. The market is very volatile and this can lead to loses if one is not careful about risk management.
Trading is very difficult but sometimes it used to look like it is very easy based how some people used to talk about it presenting it in a way that is attractive and interesting. I have heard of many perosns that had traded with funds that are not there own and ended up going to prison because if severe loses.

[lixer]

I experience this once in my real business  though it is not trading or some online transactions yet I borrowed in Lending to use in my food business but as it progress? the business did not materialize and this leaves me having a debit increasing its percentage each week and it took me at least almost a year to pay off, since then? never that i borrowed any amount for investment but I only borrow for emergency purposed amounting that i can pay back sooner.

I already heard a same case and there are even bigger businesses or loans. Some are fortunate to grow their business even more and they can be able to pay that loan on time while some are just unfortunate. Well, that is life.

We need to try and take risk to see if what will be the outcome but at least you only loan a money which you think you can easily pay once the outcome didn't run well right? This is the important thing that a loaner must follow but the term in your loan is crazy if the interest grows every week. I think that's not fair. I heard that we can be able to report these kinds of lenders to the authorities because they are taking advantage of someone else.

[Mahanton]

I experience this once in my real business  though it is not trading or some online transactions yet I borrowed in Lending to use in my food business but as it progress? the business did not materialize and this leaves me having a debit increasing its percentage each week and it took me at least almost a year to pay off, since then? never that i borrowed any amount for investment but I only borrow for emergency purposed amounting that i can pay back sooner.

I already heard a same case and there are even bigger businesses or loans. Some are fortunate to grow their business even more and they can be able to pay that loan on time while some are just unfortunate. Well, that is life.

We need to try and take risk to see if what will be the outcome but at least you only loan a money which you think you can easily pay once the outcome didn't run well right? This is the important thing that a loaner must follow but the term in your loan is crazy if the interest grows every week. I think that's not fair. I heard that we can be able to report these kinds of lenders to the authorities because they are taking advantage of someone else.

Yeah, thats life and there are indeed times which we do really need to take up some risk if you do really like on making yourself to have some progress into your life or business.Some are really just that sticking into much safe side which it isnt that bad but there are ones who do take up some risk for them to dive in into those opportunities which does give up some chance for you to enhance and improve on what you are currently
dealing with.Avoid on getting those loans or borrowed funds as much as possible because you dont know on what would happen next where the market could end up some bearish
which would really be putting you into a tough spot.

[Kgdktac]

trading with borrowed funds, also known as margin trading (i know thats cheeky), can be very risky and is not recommended for beginners or inexperienced traders. When you trade with borrowed money, you are effectively increasing your potential gains, but you are also increasing your potential losses. If the market moves against you, you can lose more than your initial investment, and you will have to pay back the borrowed funds regardless.

 this can lead to financial ruin and penury.

[deathcode]

This can be the highest risk I can ever immagine one to take while trading,and what if you lost the whole money you borrowed in the process of the trading,what will be the outcome?It is putting more depression on yourselve because you will now be a slave to the person that lend you the money.
Borrowing money for trading is one thing I cannot do because I know how risky it is,and I know that trading is not guaranteed at any given time,it's a try of luck,if it favours you,then kudos,but if you lose,then it's part of the game.

I totally agree, trading with the funds we have, sometimes we have to face the bad risk of losing.
In my opinion, when trading with borrowed money, of course, we will have more pressure and it will definitely drain our minds.
I sometimes regret the thought that people are always too confident to take huge risks to achieve big profits.

I think people who think like that only think about themselves and don't care about their family.
If they suffer a big loss, it is certain that they will be dragged into a legal case and it is certain that their family will bear the loss.
We have to be really good at controlling ourselves and our emotions when trading.
Even a professional trader can sometimes make mistakes and suffer big losses.

[sulendra12]

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?

Please don't ever do that, even if you are experienced or not it doesn't matter. If you lose your loan money because of your fault from trading then it would be a disaster for you, because you need to pay that borrowed funds or something worst could happened. It's not a wise decision at all. Just use money that you can afford to lose from your own pocket and go with it instead of borrow it.

[Negotiation]

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?

Please don't ever do that, even if you are experienced or not it doesn't matter. If you lose your loan money because of your fault from trading then it would be a disaster for you, because you need to pay that borrowed funds or something worst could happened. It's not a wise decision at all. Just use money that you can afford to lose from your own pocket and go with it instead of borrow it.

I agree when trading with borrowed funds it gets in the way of living a normal life by paying off the debt. That's why one should think thrice before engaging in cryptocurrency trading in crypto involves borrowing funds and risk to make a trade. If the trading level of a position becomes too unsafe, an exchange may close the position.

[bitterguy28]

I experience this once in my real business  though it is not trading or some online transactions yet I borrowed in Lending to use in my food business but as it progress? the business did not materialize and this leaves me having a debit increasing its percentage each week and it took me at least almost a year to pay off, since then? never that i borrowed any amount for investment but I only borrow for emergency purposed amounting that i can pay back sooner.

I already heard a same case and there are even bigger businesses or loans. Some are fortunate to grow their business even more and they can be able to pay that loan on time while some are just unfortunate. Well, that is life.

We need to try and take risk to see if what will be the outcome but at least you only loan a money which you think you can easily pay once the outcome didn't run well right? This is the important thing that a loaner must follow but the term in your loan is crazy if the interest grows every week. I think that's not fair. I heard that we can be able to report these kinds of lenders to the authorities because they are taking advantage of someone else.

While we can make it like that? loaning money that we can be assured having funds to return or payback yet why need to act like that when you can achieve this by hitting your own money and has no obligation to others?
we also knew that in crypto the volatility is the problem that sometimes hindering us from taking our profit in the future.

[KupaCrypto]

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.

Yes a good trader can be confident of borrowing money to trade, but even in trade good traders loose money tooo,
So instead of a 50/50 trade is more like a 70:30 percent trade in favour of the good trader, equally a not so good trader too can still make profit trading with a borrowed money, so in all whether a good or novice trader there is a risk to bear, you might loose or might get profits.
And as for the money don't borrow what you can't pay , borrowing to trade is not ideal but it's a risk worth it  and the trader whether good or not too good Should bear in mind that in trading you either gain or you loose.