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.

[AYOBA]

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.

Trading has no master even the person that has been long in the trading doesn’t mean that they cannot lose. So to me those who borrow money to trade is like they don’t know that they’ve take a wrong move, because the trading is all about luck and anything can happen at any time, they might borrow money and still lose it within a minute.

That’s why it’s not advisable to borrow money just because of trading, my questions to those who prefer to trade with borrowing money what if they lose everything how they can get it back to repay the debt?

This profits that most of them depend on it is not guaranteed, there’s some of the traders that ever since they started trading they’ve never gained anything from trading rather than losing.

[Ojima-ojo]

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.

Trading has no master even the person that has been long in the trading doesn’t mean that they cannot lose. So to me those who borrow money to trade is like they don’t know that they’ve take a wrong move, because the trading is all about luck and anything can happen at any time, they might borrow money and still lose it within a minute.

That’s why it’s not advisable to borrow money just because of trading, my questions to those who prefer to trade with borrowing money what if they lose everything how they can get it back to repay the debt?

This profits that most of them depend on it is not guaranteed, there’s some of the traders that ever since they started trading they’ve never gained anything from trading rather than losing.

Those who can take a loan to trade with are cure addicts, most especially someone that have experience of the uncertainty of the crypto market, even if you are trading on the most stable and less volatile assets you can still lose because you can forecast for sure which direction the market will go after you open your trade.

Is it smart to take loan for cryptocurrency trading?
The answer is no, because from previous cases of failed trades taken on loans, it always negative and based on the reality of crypto market volatilities it will always come out negative trading with borrowed money.

[Johnlomape]

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.

The idea of borrowing money to trade can look cool but the end point can become a big problem that will be very hard for the borrowers to pay their debts. I will never advise anyone to go borrow money so they can use it to trade.
There have been several victims that though this was a cool way for them to make money through trading but their plans never worked due to so many unimaginable reasons. What's the reason of rushing to get a loan and trade when I can gradually use small amount to start trading and grow it without being in a haste or too greedy.

[Queen uloma]

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.

The idea of borrowing money to trade can look cool but the end point can become a big problem that will be very hard for the borrowers to pay their debts. I will never advise anyone to go borrow money so they can use it to trade.
There have been several victims that though this was a cool way for them to make money through trading but their plans never worked due to so many unimaginable reasons. What's the reason of rushing to get a loan and trade when I can gradually use small amount to start trading and grow it without being in a haste or too greedy.

Borrowing money to trade is just like a short cut to make quick money, but it can lead to big problem if the market didn’t go as you expected it to. I won’t advise anyone to go into debt just because he wants to trade, why I said so is because loss doesn’t care whether you borrowed the money or it’s yours.
 
It’s good for someone to start with any amount that they can afford to lose,  learn and grow gradually. You don’t need to rush or let greed make you go into debt when you can build yourself with proper risk management and patience.

[BitBakerr1]

It’s good for someone to start with any amount that they can afford to lose,  learn and grow gradually. You don’t need to rush or let greed make you go into debt when you can build yourself with proper risk management and patience.

Yes, it is good to start with money that you can afford to lose, if you don’t have money that you can afford to lose then don’t trade.
The only people that usually rush just to trade are people that are new into trading they feel that they can start making money immediately they start trading, and that is the reason why some of them decide to rush and borrow money and then use it to trade thinking that they are going to make huge amount of money, from the money they borrowed not knowing that they may actually lose all the money and then be in debt.

As a trader, you need to use only your money and only small percentage of your discretionary income.

[Youngrebel]

Borrowing money to trade is just like a short cut to make quick money, but it can lead to big problem if the market didn’t go as you expected it to. I won’t advise anyone to go into debt just because he wants to trade, why I said so is because loss doesn’t care whether you borrowed the money or it’s yours.
 
It’s good for someone to start with any amount that they can afford to lose,  learn and grow gradually. You don’t need to rush or let greed make you go into debt when you can build yourself with proper risk management and patience.

You make it seem like when money is borrowed to trade traders have a high chance of finding a shortcut to make money rapidly but that's not exactly the case because that alone puts you in a precarious situation. It is never a Short cut to make quick money but it is a short cut to get into debt that's for sure.

The most important thing a trader should have before they think if trading is a source of income, even though they can trade with any amount of money that they can start with it is still important for them to always prioritize building a source if income first.

Borrowing money to trade is quite risky because it affects your emotions and logic, the chances of making mistakes would be very high because you would be trading under pressure.

[Bright0515]

There's no need to put yourself under such emotional pressure because borrowing money to trade can cloud your judgment, meaning that  there are certain decisions you would make out if panic and fear because you would not want to end up losing the money you have borrowed to trade but this emotional imbalance could also be responsible for losses at some point. If you don't have your own money or a source of income then you should not be trading. The problem a lot of people have is that they think that trading is something they can just do to quickly double what they have or get an emergency fund but that's not really how it works, as a matter of fact if you think that way it means you are approaching trading with the mindset of a gambler.

[Issa56]

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.

Borrowing money to trade is just what am not going to encourage, because when you are trading, you should know that we can’t avoid loss, if someone that borrowed money to trade start losing, their will be pressure on the person because he will want to recover back, in the process of trying to recover back, the person might just end up making decisions which they are not suppose to make, and they just going to lose more money.

If you want to trade, make sure it’s with your money, even if the money isn’t that much, if you can properly build it, then it’s going to increase. It’s better than you borrowing money, and trading under pressure.

[Plutomanian]

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.

This is poignant tale if you ask me. First of all, one of the biggest made here is borrowing money to trade, common who does that in this our current generation? All my years of trading, I will never trade with money I can not afford to lose because that would be one of the greatest mistakes in the market and also a big loss which is accompanied emotions. Trading without target or setting up a technical or following fundamental analysis is merely gamble.

Setting up stop losses doesn't guarantee that you will not lose money because if one doesn't have a clue about the whole market, definitely losses will keep kicking in and we know who's about to lose more money to trade. What ambition will push him to borrow $1,500 to pay back $1,800? I can understand the high margin this particular will use and the kind of pressure he will face when trading and any small votalility in the market, he will panic and either buy or sell and we know the end outcome which will lead to losses. There's absolutely every regret to make up from trading losses because they only counts when your portfolio is running all dry up.

[Wind_FURY]

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.

Tell your friend that next time he wants to borrow money to trade, why not merely use an exchange where futures markets are listed. For $200.00 he could trade a perpetual futures contract with 10x leverage for a $2,000.00 dollar trade.

  ¯\_(ツ)_/¯

[PERtua]

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.

I do agree that it could be very stressful in trading when the trader has to pay back the money he borrowed and has the stress of his loan to deal with. That pressure can quickly result in hasty decisions, particularly following the first defeat. I believe it's the desire to recoup the loss right away that makes it easy to take one bad trade and go down several more. If they've made that decision, it's likely that it's more of a break from real money trading. A demonstration account can be useful for them to practice without the added pressure of money and help them develop their strategy and emotional control. That is where risk management comes into play, but nothing can compensate for bad decisions such as stop-loss. Always use money that you can afford to lose for trading; never borrowed money.

[Bigthraex]

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.

Trading is far more complicated than most people realize because one of the biggest mistakes a trader will make is to have high expectations for trading, which carries a lot of risk. If you don't have a backup plan, paying back the money becomes more difficult, so if you borrow money to trade, you need to have a plan in place in case you lose the money because nothing is guarantyd when it comes to trading.so would anyone appluad, such a move, which is why you should have a mentor before you even begin trading, since they will undoubtedly discourage it. Additionally, one of the issues that newcomers face is their desire to make quick money, which is typically the source of the issue.

[Bitcoin_people]

Those who are addicted to trading lose their money in some way or the other and they think that they may not be addicted to trading very much. The one you mentioned must have less knowledge and skills about trading, which is why he is losing so much. If trading is done on credit, it is the most risky thing, and since your friend took a loan and lost all his money, it is very dangerous for him. Those who fail to control themselves in trading and cannot stop will sink into addiction just like gamblers.
However, to trade, you must use stop loss and refrain from using high leverage, and you must observe good strategies and trade later. You must give him good advice so that he does not come to trading on credit, this is the biggest danger and risk, and you should also advise him to control himself

[Halifat]

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.

Trading is far more complicated than most people realize because one of the biggest mistakes a trader will make is to have high expectations for trading, which carries a lot of risk. If you don't have a backup plan, paying back the money becomes more difficult, so if you borrow money to trade, you need to have a plan in place in case you lose the money because nothing is guarantyd when it comes to trading.so would anyone appluad, such a move, which is why you should have a mentor before you even begin trading, since they will undoubtedly discourage it. Additionally, one of the issues that newcomers face is their desire to make quick money, which is typically the source of the issue.

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.

[Brizi5000]

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.

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 .