Borrow money to trade

[Rengga Jati]

He lost because he did futures trading, and not spot trading. Like what you said, no one will lost that huge of an amount in just 3 days.

Trading in the futures market involves a lack of knowledge, high leverage, and high margin requirements. A truly intense combination. Add high stress and poor emotional control to the mix. One might face liquidation in less than three days. Indeed, that is the major issue. Traders frequently fail in futures trading due to various factors, ranging from personal limitations to the powerful influence of market sentiment.

Having that mindset of borrowing money to trade with the hope of paying back through trading is a wrong move, because trading never guarantees people quick profits. Although it's possible but rarely happens as the market fluctuates, this can lead them to disappointment and regret. It is important to make sure they have the capital before deciding to start trading, as it can help prevent additional pressures that cause them more harm.

Many people think this way. They calculate the potential profits from each trading pair and tally up the daily totals. This often fuels a desire for more capital. Driven by the hope of getting rich quickly. Unlike long-term holders who take a long-term approach to profit-taking. Traders are different. Unfortunately, however, they may overlook the extremely high risks involved. Trading does not always yield profits; in fact, most traders fail and lose their money.

[kawetsriyanto]

He is having business and earning almost $1000 monthly, he borrowed $1500 and he will pay $1800. He borrowed it to trade and lost everything within 3 days.

He actually doesn't need to borrow money since he can earn $1000 each month. He can use 10%-15% of his income for trading.
How long he trade? It is a truly careless way to borrow money if he isn't experienced enough. And I'm curious that he trade in future and choose random coins, is it true? He shouldn't lose everything if he trade in spot and choose top 10 coins such as ETH, BNB, HYPE, SOL, XRP, or TRX.

Also I noticed that he is addicted to trading but he said he is not. He told me that he will not make such a mistake again, but he wants to further learning more about trading.

Addict sometimes isn't aware that he is addicted. He needs someone to remind him. Unfortunately, most people only hear the advice from their family members or doctors.

I have advised him. He likes using stop loss and other things that he can use not to lose, but he still lost money anyway until he lost all the money.

How he can lose all money if he uses "stop loss"? TBH, it is a bit confusing. 

When he wanted to borrow, the did not tell me, I would have advised him not to borrow the money.

You only can give him an advice, the decision will be in his hand. 

[Charles-Tim]

He actually doesn't need to borrow money since he can earn $1000 each month. He can use 10%-15% of his income for trading.
How long he trade? It is a truly careless way to borrow money if he isn't experienced enough. And I'm curious that he trade in future and choose random coins, is it true? He shouldn't lose everything if he trade in spot and choose top 10 coins such as ETH, BNB, HYPE, SOL, XRP, or TRX.

Trading is not good at all, especially the day trading. It can make someone think that he is not having or earning enough money. I think this is what is affecting such person already. Someone that can borrow such amount of money to trade will definitely have been using high amount of money to trade already and probably many part of his salary may be going into trading. When he has spent all his salary on trading would be when he borrowed the money.

[TheUltraElite]

Trading is not good at all, especially the day trading. It can make someone think that he is not having or earning enough money. I think this is what is affecting such person already. Someone that can borrow such amount of money to trade will definitely have been using high amount of money to trade already and probably many part of his salary may be going into trading. When he has spent all his salary on trading would be when he borrowed the money.

That is a wrong approach to trading if someone really wants to trade. One must use their own money to trade but before doing so attempt dummy trading first and watch the markets for a longer period of time to get a feel of what the cycles end up doing from up to down.

If one uses their own money to trade on this they will never have the mental stress of having yo return it anytime in future. They can happily hold it for long which often becomes a problem for borrowed money.

Trading with high volumes only to lose it eventually some moment or another is a stupid approach.

[Agathamay]

I have a friend that is a trader like me, we talk about trading very well, but he told me something shocking today which let me think that trading is gambling for some people.

He is having business and earning almost $1000 monthly, he borrowed $1500 and he will pay $1800. He borrowed it to trade and lost everything within 3 days.

Also I noticed that he is addicted to trading but he said he is not. He told me that he will not make such a mistake again, but he wants to further learning more about trading.

I have advised him. He likes using stop loss and other things that he can use not to lose, but he still lost money anyway until he lost all the money.

When he wanted to borrow, the did not tell me, I would have advised him not to borrow the money.

The truth is that, your friend started chasing losses and didn’t even realize it which is bad because we all always know the outcome of chasing after losses.
I think she should take some break from trading and try to figure out where truly the problem lies and since he already said that, he intends learning more again, that would be a great step for him and I wouldn’t want to call this single incidence addiction because addiction has a lot of negative impact and for someone who still identifies that it was wrong for him to borrow to trade, show it was a mistake from my view .

There are several factors that affects trading results and borrowing to trade puts the trader on some sort of pressure to want to win every trade and when it doesn’t happen, there’s this desire to start chasing losses to take way recover the borrowed funds

[Frankolala]

Ordinarily , trading is highly risky talk more of borrowing money to trade. This is where the impact of the trading risk becomes more severe. It is better if a trader loses with his own capital than borrowing money outside and still hoping to pay back the debt with the trading profit which is not guaranteed. Risk management is very important while embarking on trading in order to avoid this kind of disappointing situation. This will only intensify loses as much as gains because no matter what the outcome of the market is you’ll have to pay back the debt with interest .

I get your point. This is why it's said that you should only trade with the amount of money that you can afford to lose and don't use leverage when trading. Anyone borrowing money to trade doesn't understand trading if not, he wouldn't do that because losses are inevitable. Will I say that traders who borrow money to trade are already addicted to trading?

[Bigthraex]

This is one of the biggest issue that most of the newbies are facing when it comes to trading, they are easily carried away but what they saw on social media with all those screenshots then see from influential traders, yes that can encourage someone to get into trading but they should equally understand that those people did not start that day before making that kind of money. Newcomers are always eager to make that kind of money in a very short time which is why some of them make the biggest mistake of their life, by either using all his savings or borrowing to start trading, it is a very wrong move for someone to use his savings or borrowing or borrowing money to start trading.

Newbies in trading who use all their savings or even go as far as borrowing because of desperation to make money fast which is a wrong thing to do it considering the risks involved. Sometimes they are pressured or motivated by what they see on social media by traders who post evidences of how much profit they make and this pushes beginners to go out of their way and also go all out to invest what they cannot to afford to lose. When they trade with so much desperations they will even take risks that they shouldn't take and they might lose the money they have borrowed or all their savings. Trading comes with so much risks so no one should use all their savings to trade or even borrow money to trade because there are no assurances and if things go south one might be indebted which is even a bigger problem.

[Pandu Geddon]

Will I say that traders who borrow money to trade are already addicted to trading?

It's possible that someone is already addicted, or they are under certain financial pressure that makes them take bigger risks. In a normal situation, if someone trades using borrowed money, that trader definitely wouldn't be able to control themselves from trading, even when they don't have capital. Addiction isn't just about gambling; trading can also make people addicted. Whether they're an experienced trader or someone trying to gamble through trading.

[avp2306]

Trading is not good at all, especially the day trading. It can make someone think that he is not having or earning enough money. I think this is what is affecting such person already. Someone that can borrow such amount of money to trade will definitely have been using high amount of money to trade already and probably many part of his salary may be going into trading. When he has spent all his salary on trading would be when he borrowed the money.

That is a wrong approach to trading if someone really wants to trade. One must use their own money to trade but before doing so attempt dummy trading first and watch the markets for a longer period of time to get a feel of what the cycles end up doing from up to down.

If one uses their own money to trade on this they will never have the mental stress of having yo return it anytime in future. They can happily hold it for long which often becomes a problem for borrowed money.

Trading with high volumes only to lose it eventually some moment or another is a stupid approach.

It only make sense if they trade using their own money, because with that they can avoid experience heavy pressure. Actually borrowing money will just remove their patience and this could create lots of stress, then also there's a chance that they maybe try to rush everything just to compensate their borrowed capital,

If they want to use demo account to test their trade its fine, because somehow it can help them build discipline. Also they provably learn without experiencing losses.

Also deciding to use huge amount without any experience usually end up to more losses, also if they rely on borrowing this will put them on more worse situation.

[osasshem]

I have a friend that is a trader like me, we talk about trading very well, but he told me something shocking today which let me think that trading is gambling for some people.

He is having business and earning almost $1000 monthly, he borrowed $1500 and he will pay $1800. He borrowed it to trade and lost everything within 3 days.

Also I noticed that he is addicted to trading but he said he is not. He told me that he will not make such a mistake again, but he wants to further learning more about trading.

I have advised him. He likes using stop loss and other things that he can use not to lose, but he still lost money anyway until he lost all the money.

When he wanted to borrow, the did not tell me, I would have advised him not to borrow the money.

Trading is being said that it is not for everyone, and not everyone that can make good profits from trading. Trading is risky, and if you lack risk management, you will find it difficult to maintain your trading capital. Your friend took a very big risk to take loan for trading. The interest is fair and I am sure he won't be charged excessively if he doesn't meet the due date for the loan, that will be the reason why he went on with the process. I hope his business will flourish so he will be able to pay back his loan before time.

[HajiBagi]

I have a friend that is a trader like me, we talk about trading very well, but he told me something shocking today which let me think that trading is gambling for some people.

He is having business and earning almost $1000 monthly, he borrowed $1500 and he will pay $1800. He borrowed it to trade and lost everything within 3 days.

Also I noticed that he is addicted to trading but he said he is not. He told me that he will not make such a mistake again, but he wants to further learning more about trading.

I have advised him. He likes using stop loss and other things that he can use not to lose, but he still lost money anyway until he lost all the money.

When he wanted to borrow, the did not tell me, I would have advised him not to borrow the money.

I don’t advise people twice, if i were you, i will only advise him once and i will never again, because he is not a small child, only a small child can be repeatedly advise. What did he even think before he started trading? Did he think that trading was for everyone? If you don’t have any  money,  you should avoid trading because borrowing money to trade is very risky.

Your friend is a greedy person, he is not satisfied with what he earns from his business, and a greedy person always find himself in trouble, he is earns $1000 per month and he still wants to do trade, if he does not listen to you, he will lose his business as well, because he can use all of his business funds to do trade, it is not good to be addicted to trade, when you are losing money, you take a break and learn more about it, and the worst part is that he borrowed money to trade.

[cxtreenal]

He actually doesn't need to borrow money since he can earn $1000 each month. He can use 10%-15% of his income for trading.
How long he trade? It is a truly careless way to borrow money if he isn't experienced enough. And I'm curious that he trade in future and choose random coins, is it true? He shouldn't lose everything if he trade in spot and choose top 10 coins such as ETH, BNB, HYPE, SOL, XRP, or TRX.

Trading is not good at all, especially the day trading. It can make someone think that he is not having or earning enough money. I think this is what is affecting such person already. Someone that can borrow such amount of money to trade will definitely have been using high amount of money to trade already and probably many part of his salary may be going into trading. When he has spent all his salary on trading would be when he borrowed the money.

To put it more clearly, day trading can be compared to gambling. For example, an addicted gambler keeps betting in the hope of winning and loses a lot considering gambling as a source of income. Trading is as dangerous as gambling because as you said, he may think that he does not have enough money left. Whenever you feel poor, you will not be able to do anything carefully. You will always live a worried life and will keep looking for shortcut strategies to increase income and the risk of becoming addicted to something like trading or gambling.

[JoyceBTC]

Will I say that traders who borrow money to trade are already addicted to trading?

I don’t believe all who borrow money to trade are addicted while some actually are. Most traders go ahead to borrow Money because of fear of missing out. When the market is experiencing a bull, most traders feel is the best opportunity to make good profit and even when they don’t have the funds, they go ahead to borrow money without thinking twice.
The risk in trading is very high and borrowing funds to trade shouldn’t be an option at all, since the market condition can change at any time and borrowed funds might be lost at the process.

[Tonimez]

Will I say that traders who borrow money to trade are already addicted to trading?

I don’t believe all who borrow money to trade are addicted while some actually are. Most traders go ahead to borrow Money because of fear of missing out. When the market is experiencing a bull, most traders feel is the best opportunity to make good profit and even when they don’t have the funds, they go ahead to borrow money without thinking twice.
The risk in trading is very high and borrowing funds to trade shouldn’t be an option at all, since the market condition can change at any time and borrowed funds might be lost at the process.

Even if all that takes loan to trade are not addicted, it is still not clear how to corroborate that fact. Normally, a person is not supposed to trade with whatever he cannot afford to loose at anytime of which borrowing to invest is already out of the deal because if he believes he can loose the money he borrowed to trade, how then will he repay the loan? It's all deceit saying that a person who is not addicted can borrow money to invest because at the end, if he looses, he will not be happy. Even if he is able to control his emotions after loosing the money he borrowed, he will need additional stress to repay the loan.

Even the money a person owns which he cannot afford to loose is not advisable to be traded with because trading is very unreliable and can turn red any moment. So this is all extreme risk, if he can borrow to trade, he can also sell off properties to trade. All these are symptoms of addiction or is there something exceptional about this attitude?

[NewRevelation]

I have a friend that is a trader like me, we talk about trading very well, but he told me something shocking today which let me think that trading is gambling for some people.

He is having business and earning almost $1000 monthly, he borrowed $1500 and he will pay $1800. He borrowed it to trade and lost everything within 3 days.

Also I noticed that he is addicted to trading but he said he is not. He told me that he will not make such a mistake again, but he wants to further learning more about trading.

I have advised him. He likes using stop loss and other things that he can use not to lose, but he still lost money anyway until he lost all the money.

When he wanted to borrow, the did not tell me, I would have advised him not to borrow the money.

It's not longer news that trading is just too risky and can drain you dry within minutes or days no matter the amount involved. If there is one thing am afraid of, it's trading. But even if I while try sometimes, one must apply discipline at all cost.

Seems your friend is trading addicted, because how do we explain the fact that he borrowed above his monthly total income to trade, and even while losing, he keeps on trading until he lost all. And we know how it is, he would want to recover all he lost, meaning, he will tend to borrow more to win, and probably, he will loss more. It's just a pity. If you must trade, trade from your discretionary, and only what you can afford to lose plus a well diciplined mind.. it's as simple as that.

[ASloveapg]

Ordinarily , trading is highly risky talk more of borrowing money to trade. This is where the impact of the trading risk becomes more severe. It is better if a trader loses with his own capital than borrowing money outside and still hoping to pay back the debt with the trading profit which is not guaranteed. Risk management is very important while embarking on trading in order to avoid this kind of disappointing situation. This will only intensify loses as much as gains because no matter what the outcome of the market is you’ll have to pay back the debt with interest .

I get your point. This is why it's said that you should only trade with the amount of money that you can afford to lose and don't use leverage when trading. Anyone borrowing money to trade doesn't understand trading if not, he wouldn't do that because losses are inevitable. Will I say that traders who borrow money to trade are already addicted to trading?

A bit like that, I think people only make blind decisions when they are already addicted to something, that is, very deeply involved in it, which is throwing them out of their real mindset. And when they are more deeply involved in this matter than usual, that is when they start making a lot of wrong decisions. And it is normal to be like that in trading, they are addicted to trading, and that is why they are ignoring the risks of trading because they have lost their real mindset and are blindly thinking only about making a profit, and that is why they decide to trade with debt.