Borrow money to trade

[RazerMouseMobile]

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trading in spot will not making someone losing $1500 within 3 days, because even BTC market very volatile, lets say his friends entry at $66.9K (july 2026) and based on today price (at this post) $62.9K,
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he just losing 6% from his capital. and it wouldn't affect anything for him, right? but it will be different if his friends playing with high leverage to get instant profit. i agree it's just a gamble not a trade anymore, because he buy a prediction for "short" or "long", if the prediction wrong just need he can lose faster.

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.

It's quite unfortunate to see traders losing money that quick, and this is also the reason why we need to balance our knowledge in trading with the amount of money that we're putting in order to prevent more losses. If we are just starting, just put a small amount of money and always be ready on losing it. Now as you gain more experience, knowledge, and you already have a strategy that works for you then that's the time for you to scale up and increase your capital. Problem with some is that, they want to start big to maximize their profits without thinking of the possible losses that they'll incur.

Trading is gambling for traders who don't know how to manage their risk. I do hope that this friend that OP has shared already stopped trading for a moment and analyze his losses, or maybe quit trading completely if needed.

[terrific]

I still don't understand people who risks money and adds on top of it through taking loans just for them to trade.
That is not free and easy money for you to put up a risk to.

It's because they consider trading to be an investment or job. They imagine it's like borrowing money to start a business, so they can repay it with the profit made along the way. They don't consider the risks involved and the possibility (which isn't low) of losing all the money in attempt to make it grow. Probably they don't have full comprehension of what trading is and how it works, especially crypto trading.

With the wrong mindset and misleading informations taken as true, it's quite easy to make dumb decisions like borrowing money to trade and losing everything on the sequence.

They think that it's money hack for them and will get profit for free by just paying off the loan later.
It can work for the very few traders but, it's not going to work for the most people.
That's a very wrong mindset there and they'll have to learn the lesson later on when they're almost have no ways of solving that problem they took with its risk.

[hafiztalha]

There are several factors that could cause your friend to lose that much money in such a short time. First, the funds might have been borrowed, feeling the pressure to repay the loan quickly can lead to rushed trading decisions (which is why borrowing money to trade is strongly discouraged). Second, he may be unable to control his emotions, causing a single loss to snowball into further losses.

My advice is for him to hold off on trading with real money, as he is not yet mentally or psychologically prepared. It would be better for him to first understand the mechanics of trading and strengthen his risk management skills, using a demo account is a good alternative for practice.

I think this is an important point borrowing money can cause pressure of repaying and affects decision making. But even the money is borrowed the main thing is what happened after the first loss. If someone try to recover from one bad trade immediately it can turn into from 1 to several bad trade and that's why emotional control is important. And I agree he should stay away from real money for some time to understand what went wrong demo account will give him time to practice without losing money. Understanding mechanics of trading is also important because tool like stoploss does not automatically make our trade safe. He needs to understand how his decisions are affecting the results.

[L E G E N D A R Y]

They think that it's money hack for them and will get profit for free by just paying off the loan later.
It can work for the very few traders but, it's not going to work for the most people.
That's a very wrong mindset there and they'll have to learn the lesson later on when they're almost have no ways of solving that problem they took with its risk.

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.

[Abdulzuruku01]

Borrowing money to trade is totally wrong, because the pressure to pay back the money and the interest may make someone lose focus and struggle to settle their personal bills. It’s cool for a person to trade with only their discretionary income. Investment isn’t 100% safe but with the help of knowledge, risk management and experience, the danger will reduce.

Trading is a skill, whether market rises or falls. So if your friend doesn’t have any experience or knowledge, entering with borrowed money is an unnecessary risk on it own.

You know the problem with some traders is over confidence. They think they have mastered trading and can easily make a profit and repay if they trade with a borrowed money. Yes it works sometimes but the chances for that are just slim because for most people it doesn't work, the result usually ends badly. Honestly I agreed with you that people should not trade with a borrow money. But you know how ignorant some traders are, no matter what you say they will still to do it. But my advise to them they shouldn't depend on the profits they haven't sure of, they should have other means to pay back incase if the trading didn't go as planned.