Borrow money to trade

[free-bit.co.in]

Trading is completely gambling, there isn't any difference from it, because winnings aren't sure or guaranteed. Therefore, such involvement should be our person money, money that is not in plan of usage or you don't have need of it for any reason soonest. At least, when you trade with such money, you have some level of peace of mind. A borrowed money will always put you in much thinking while trading, and this might make you take some wrong decisions because your mind isn't steady.

One of his biggest mistakes was to trust that he would make more money with trading and it resulted to borrowing money even above his monthly income. Just too bad. I wonder what would be his next action in order to recover and pay back the loan. We must not allow us to be trading addicts, because it's too risky for us. We have to make due with our discretionary.

That's a pretty broad statement. Many people would disagree with you on this.

Just because both involve risk and no guaranteed returns doesn't mean they are exactly the same. In trading, you can analyze the market, develop a strategy and manage your risk. But in gambling, the outcome is much more dependent on probability and chance.

I think we've discussed this many time already. To be fair, they are two different thing, and it does not make sense to lump them together.

[#CapsLOck]

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.

Just because one is borrowing money to trade, it doesn't necessarily mean that one is addicted, but it could mean that emotions are beginning to take over proper risk management. What is more of a problem is the stress that accompanies debt. When a trader uses his/her own capital, they can afford a normal loss far better than when they borrow money. Be it a normal loss or a big loss, they will owe something when they borrow money. This pressure can result in revenge trading, over-leveraging and potentially even worse losses. The principle of trading should be to have a strategy and have the money to lose and not the expectation that profits will pay back a debt.

[Shineup]

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.

Borrowing or in other words using money that is not potentially your own is completely a high risk engagement, such trading is more like gambling, you either win or lose. If you use your money and lose, you can easily pick up your life without anyone harassing you maybe if you are unable to repay on time, my neighbor ended up using a business money that wasn't his own to gamble, he usually purchases his business goods on credit to pay after he must have sold out, it was a bad day for him and while he was supposed to send the money that he has sold from the goods before carrying another, he was tempted to gamble with this money and unfortunately he lost so bad, to cut the long story short he got arrested and after managing to raise half of the money he was released and signed an undertaken to be repaying the rest of the money by instalment on monthly basis. This is why it is completely wrong to use a borrowed money to trade or gamble as the shock of the results when in lost can affect you negatively. But when the money is yours, you can bear your lost calmly and people might not even get to notice.

[Dareo]

-snip-
Borrowing or in other words using money that is not potentially your own is completely a high risk engagement, such trading is more like gambling, you either win or lose. If you use your money and lose, you can easily pick up your life without anyone harassing you maybe if you are unable to repay on time, my neighbor ended up using a business money that wasn't his own to gamble, he usually purchases his business goods on credit to pay after he must have sold out, it was a bad day for him and while he was supposed to send the money that he has sold from the goods before carrying another, he was tempted to gamble with this money and unfortunately he lost so bad, to cut the long story short he got arrested and after managing to raise half of the money he was released and signed an undertaken to be repaying the rest of the money by instalment on monthly basis. This is why it is completely wrong to use a borrowed money to trade or gamble as the shock of the results when in lost can affect you negatively. But when the money is yours, you can bear your lost calmly and people might not even get to notice.

I don't think that anyone can become addicted to trading just by trading with borrowed money. Sometimes such decisions can also come from overconfidence or pressure to make quick profits, I think the real problem is that borrowed money also comes with time pressure and interest, so the chance of getting out of it naturally decreases if there is a loss. On the other hand if you trade with your own money, you have the opportunity to stop after making a wrong decision but if it is borrowed money, that mistake can turn into a bigger problem.  Actually it is more important to decide how much you can lose before trading, than to plan based on how much you will make.

[Shineup]

-snip-
Borrowing or in other words using money that is not potentially your own is completely a high risk engagement, such trading is more like gambling, you either win or lose. If you use your money and lose, you can easily pick up your life without anyone harassing you maybe if you are unable to repay on time, my neighbor ended up using a business money that wasn't his own to gamble, he usually purchases his business goods on credit to pay after he must have sold out, it was a bad day for him and while he was supposed to send the money that he has sold from the goods before carrying another, he was tempted to gamble with this money and unfortunately he lost so bad, to cut the long story short he got arrested and after managing to raise half of the money he was released and signed an undertaken to be repaying the rest of the money by instalment on monthly basis. This is why it is completely wrong to use a borrowed money to trade or gamble as the shock of the results when in lost can affect you negatively. But when the money is yours, you can bear your lost calmly and people might not even get to notice.

I don't think that anyone can become addicted to trading just by trading with borrowed money. Sometimes such decisions can also come from overconfidence or pressure to make quick profits, I think the real problem is that borrowed money also comes with time pressure and interest, so the chance of getting out of it naturally decreases if there is a loss. On the other hand if you trade with your own money, you have the opportunity to stop after making a wrong decision but if it is borrowed money, that mistake can turn into a bigger problem.  Actually it is more important to decide how much you can lose before trading, than to plan based on how much you will make.

You don't really think that anyone can become addicted to trading just by trading with a borrowed money?  I doubt this to be honest and maybe you should only speak for yourself and not to generalized it, this is because you don't know others strength and weaknesses, the reaction after using a borrowed money can only be positive if they are in profits at the end but they are in lost trust me they might end up chasing loses and at that point there is vulnerability of becoming addicted, trading is risky on it's own that automatically makes borrowing money to trade more risky.

[shawonngp]

-snip-
Borrowing or in other words using money that is not potentially your own is completely a high risk engagement, such trading is more like gambling, you either win or lose. If you use your money and lose, you can easily pick up your life without anyone harassing you maybe if you are unable to repay on time, my neighbor ended up using a business money that wasn't his own to gamble, he usually purchases his business goods on credit to pay after he must have sold out, it was a bad day for him and while he was supposed to send the money that he has sold from the goods before carrying another, he was tempted to gamble with this money and unfortunately he lost so bad, to cut the long story short he got arrested and after managing to raise half of the money he was released and signed an undertaken to be repaying the rest of the money by instalment on monthly basis. This is why it is completely wrong to use a borrowed money to trade or gamble as the shock of the results when in lost can affect you negatively. But when the money is yours, you can bear your lost calmly and people might not even get to notice.

I don't think that anyone can become addicted to trading just by trading with borrowed money. Sometimes such decisions can also come from overconfidence or pressure to make quick profits, I think the real problem is that borrowed money also comes with time pressure and interest, so the chance of getting out of it naturally decreases if there is a loss. On the other hand if you trade with your own money, you have the opportunity to stop after making a wrong decision but if it is borrowed money, that mistake can turn into a bigger problem.  Actually it is more important to decide how much you can lose before trading, than to plan based on how much you will make.

Trading with borrowed money is much riskier than trading with your own money. When you trade with borrowed money, there is a lot of mental pressure; you have to worry about how to repay that money with interest.
But with your own personal funds, if you lose everything, you can stop trading at any time; you don't have to stress about chasing losses, whereas those who borrow money to trade are at high risk. And I think they can easily become addicted to trading because they trade for too long in hopes of making a profit.

[Oluwa-btc]

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 not the first time I have heard stuffs like this, to some, trading is a lot more like gambling.

I have nothing against borrowing but what are the chances that you will double the money? Demo accounts will give you high ups and make you feel like you can get it done but whenever you input your money, you will be mind blown with the losses you will accumulate.

He is quite stubborn if he has refused to checkmate himself most especially after such a fatal lose, it is either you take sometime off or leave completely. People like him will use his emotions a lot even during trading.

[Z_MBFM]

-snip-
Borrowing or in other words using money that is not potentially your own is completely a high risk engagement, such trading is more like gambling, you either win or lose. If you use your money and lose, you can easily pick up your life without anyone harassing you maybe if you are unable to repay on time, my neighbor ended up using a business money that wasn't his own to gamble, he usually purchases his business goods on credit to pay after he must have sold out, it was a bad day for him and while he was supposed to send the money that he has sold from the goods before carrying another, he was tempted to gamble with this money and unfortunately he lost so bad, to cut the long story short he got arrested and after managing to raise half of the money he was released and signed an undertaken to be repaying the rest of the money by instalment on monthly basis. This is why it is completely wrong to use a borrowed money to trade or gamble as the shock of the results when in lost can affect you negatively. But when the money is yours, you can bear your lost calmly and people might not even get to notice.

I don't think that anyone can become addicted to trading just by trading with borrowed money. Sometimes such decisions can also come from overconfidence or pressure to make quick profits, I think the real problem is that borrowed money also comes with time pressure and interest, so the chance of getting out of it naturally decreases if there is a loss. On the other hand if you trade with your own money, you have the opportunity to stop after making a wrong decision but if it is borrowed money, that mistake can turn into a bigger problem.  Actually it is more important to decide how much you can lose before trading, than to plan based on how much you will make.

Trading with borrowed money is much riskier than trading with your own money. When you trade with borrowed money, there is a lot of mental pressure; you have to worry about how to repay that money with interest.
But with your own personal funds, if you lose everything, you can stop trading at any time; you don't have to stress about chasing losses, whereas those who borrow money to trade are at high risk. And I think they can easily become addicted to trading because they trade for too long in hopes of making a profit.

Borrowing money and trading and losing money creates double the stress. On the one hand, it is difficult to accept the loss, and on the other hand, there is a mental stress of repaying the debt. I have seen that many people are very serious about trading. This is because they may have made some profits from trading and are planning to make big profits from trading. When you borrow money, you have to pay interest on it. When someone borrows money from someone else with the intention of making a profit and trades with that money and loses that money, then he will become very emotional and will be under a lot of mental pressure which will push him to lose more. Trading by borrowing money is never a good decision. It is only an emotional decision.

[Royal Cap]

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.

Despite earning almost $1000 per month, borrowing $1500 as trading capital means adding $300 repayment pressure to the possibility of profit. This pressure can lead to even worse decisions after a loss.

Also I noticed that he is addicted to trading but he said he is not.

You cannot call someone addicted just because you lose. However if there is an urge to quickly raise capital again and trade even after a loss, then the behavior should definitely be taken seriously.

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.

Honestly, stop loss itself is not a magic protection. Leverage and how much capital is being risked on each trade are equally important. However as far as I understand, your friend is actually trading without any analysis, which is basically gambling.

[Dzwaafu11]

We should never borrow money to do a business that we're not sure of making profit, trading is very volatile and anybody that is borrowing to trade is taking a big risk because if he loses the fund he has to repay it back from another source or borrow more to chase loses, clearly your friend doesn't understand financial management. Aside from using your own money to trade your trading funds should be taking from your discretionary funds because there is no guarantee that you will make profit when you enter your trade, it is from discretionary funds that you will get amounts that you are comfortable to lose. Trading needs peace of mind, if you borrow money to trade you will become impatience to make profit and can make avoidable mistakes which can blow your account in seconds especially for newbies who are desperate and lack trading experience.

Trading is very risk and anything can happen is not advisable to borrow money and trade, many newbies are making such mistake of borrowing money to trade. And as you said its not advisable to borrow money to trade regardless of that business, especially the crypto space that is full of risk. Don't know what the result will look like, it's better to use what you have in what you are doing and gradually you will grow your own capital, and have much more than what you even wanted to borrow.

[Inior]

This has to be one of the worst decision a trader can make is to take a loan to trade because you can end up losing at anytime and when you do that with a borrowed money you put yourself in debt. Borrowing money to trade can also increase anxiety and pressure because when you would not want to lose the money you borrowed but at the same time this puts you under too much anxiety which can make uou take irrational decisions that would lead to losses. it is preferable to always stay trade with what you have and if you don't have capital then you should just wait until it comes, don't take risks that would put you in a precarious situation.

[BALIK]

This has to be one of the worst decision a trader can make is to take a loan to trade because you can end up losing at anytime and when you do that with a borrowed money you put yourself in debt. Borrowing money to trade can also increase anxiety and pressure because when you would not want to lose the money you borrowed but at the same time this puts you under too much anxiety which can make uou take irrational decisions that would lead to losses. it is preferable to always stay trade with what you have and if you don't have capital then you should just wait until it comes, don't take risks that would put you in a precarious situation.

Some people say you can borrow money to trade as long as you don't depend on your trading profit to repay the debt. But honestly, I still think that's one of the worst decision you can make.

Even if you can afford to repay the loan, you are still putting unnecessary financial pressure and risk on yourself. And as we all know, when under pressure, we often make unwise decision.

Moreover, the debt doesnt go away regardless of how your trades turn out. You still have to pay it back. In my opinion, that is a risk not worth taking.

[GiftedMAN]

This has to be one of the worst decision a trader can make is to take a loan to trade because you can end up losing at anytime and when you do that with a borrowed money you put yourself in debt. Borrowing money to trade can also increase anxiety and pressure because when you would not want to lose the money you borrowed but at the same time this puts you under too much anxiety which can make uou take irrational decisions that would lead to losses. it is preferable to always stay trade with what you have and if you don't have capital then you should just wait until it comes, don't take risks that would put you in a precarious situation.

Trading itself is risky cause you are not guaranteed of making profit and when you borrow money to trade it puts you into more intensed pressure cause you will be facing the risk of not losing your trade and the pressures of how you would pay back the loan when you lose your trade.

Even when you decide to take some risk that could profit you due to the fact that you are not using your money to trade it could limit you and also your ability to make certain quick decisions, it is better to trade with what you have so that you won't include fear or emotions in your trade.

[Karl_3000]

Trading itself is risky cause you are not guaranteed of making profit and when you borrow money to trade it puts you into more intensed pressure cause you will be facing the risk of not losing your trade and the pressures of how you would pay back the loan when you lose your trade.

Even when you decide to take some risk that could profit you due to the fact that you are not using your money to trade it could limit you and also your ability to make certain quick decisions, it is better to trade with what you have so that you won't include fear or emotions in your trade.

Some people will have good plans to pay back the money if they lose it, but borrowing money to trade is very bad and it means indiscipline, specifically financial management indiscipline.

The person may not be stressed at all but what I know is that the chance to lose the money is almost 100%, especially if the person can pay back the loan on time. It only means the person is having good source of income but he is using it to trade and lose. So the chance of losing is very high.

People should try as much as possible not to trade if they are losing in trading.

[Ayers]

This has to be one of the worst decision a trader can make is to take a loan to trade because you can end up losing at anytime and when you do that with a borrowed money you put yourself in debt. Borrowing money to trade can also increase anxiety and pressure because when you would not want to lose the money you borrowed but at the same time this puts you under too much anxiety which can make uou take irrational decisions that would lead to losses. it is preferable to always stay trade with what you have and if you don't have capital then you should just wait until it comes, don't take risks that would put you in a precarious situation.

Trading itself is risky cause you are not guaranteed of making profit and when you borrow money to trade it puts you into more intensed pressure cause you will be facing the risk of not losing your trade and the pressures of how you would pay back the loan when you lose your trade.

Even when you decide to take some risk that could profit you due to the fact that you are not using your money to trade it could limit you and also your ability to make certain quick decisions, it is better to trade with what you have so that you won't include fear or emotions in your trade.

investing also carries risk, and there is no guarantee that you will make a profit.
to put it more accurately, trading is inherently risky because at its core, it is a game of probabilities. it's one of those job where even having all the necessary skills and knowledge doesn't guarantee that you'll make a profit. so whatever the reason, borrowing money to trade is really a terrible idea.

[Olatundespo]

This has to be one of the worst decision a trader can make is to take a loan to trade because you can end up losing at anytime and when you do that with a borrowed money you put yourself in debt. Borrowing money to trade can also increase anxiety and pressure because when you would not want to lose the money you borrowed but at the same time this puts you under too much anxiety which can make uou take irrational decisions that would lead to losses. it is preferable to always stay trade with what you have and if you don't have capital then you should just wait until it comes, don't take risks that would put you in a precarious situation.

Trading itself is risky cause you are not guaranteed of making profit and when you borrow money to trade it puts you into more intensed pressure cause you will be facing the risk of not losing your trade and the pressures of how you would pay back the loan when you lose your trade.

Even when you decide to take some risk that could profit you due to the fact that you are not using your money to trade it could limit you and also your ability to make certain quick decisions, it is better to trade with what you have so that you won't include fear or emotions in your trade.

To make a profit from trading, you have to take risks. If you don't take risks, the chances are very low. It is better to take risks in trading if you have financial tolerance. Even if you know the risks, if you are prudent in taking financial management, the chances of success will increase. I am not saying that you will succeed, but there is a possibility that you will make a profit.

It would be a good idea to add only funds that you can afford to lose to trading, and you will have to keep buying. Much like long term investments because sometimes you have to wait a long time for the price of the coin to increase (for stop lose strategy).

If you are aware of the risks in trading, you will probably refrain from taking the risk of trading with debt. Although some experienced traders do this because they have the option to repay the debt. If you have a strategy to repay the debt by earning money from trading sources, it would be advisable for you not to take that risk.

[Tetu100]

This has to be one of the worst decision a trader can make is to take a loan to trade because you can end up losing at anytime and when you do that with a borrowed money you put yourself in debt. Borrowing money to trade can also increase anxiety and pressure because when you would not want to lose the money you borrowed but at the same time this puts you under too much anxiety which can make uou take irrational decisions that would lead to losses. it is preferable to always stay trade with what you have and if you don't have capital then you should just wait until it comes, don't take risks that would put you in a precarious situation.

Trading itself is risky cause you are not guaranteed of making profit and when you borrow money to trade it puts you into more intensed pressure cause you will be facing the risk of not losing your trade and the pressures of how you would pay back the loan when you lose your trade.

Even when you decide to take some risk that could profit you due to the fact that you are not using your money to trade it could limit you and also your ability to make certain quick decisions, it is better to trade with what you have so that you won't include fear or emotions in your trade.

Is like dealing with two major problems at the same time and I wonder how someone will be able to survive it. Thus, this is not a good planning or a reasonable decision to take as someone in his right frame of mind. Yea, sometimes one can have the intention of paying back the loan at due time but how can that be possible when the trading itself isn't guarantee and it's based on it you are aiming to pay back the loan. this is like a word: killing yourself by yourself.

Furthermore, is not everything that requires advise or a seer to get things right, because common sense is enough to takle some certain situations without no stress but sometimes our greed and hunger for quick profit has blinded our sense of reasoning and we will start doing things in an opposite way. Obviously, this are some of the senero I don't give a damm because experience is more in a better position of making things right for the dude involved . But my honest advice to any trader is never you learn from Hard experiences otherwise you will learn strong lessons.

[knowngunman]

Trading is very risk and anything can happen is not advisable to borrow money and trade, many newbies are making such mistake of borrowing money to trade. And as you said its not advisable to borrow money to trade regardless of that business, especially the crypto space that is full of risk. Don't know what the result will look like, it's better to use what you have in what you are doing and gradually you will grow your own capital, and have much more than what you even wanted to borrow.

Even for professional traders, it's not advisable to borrow money to trade talk more of newbies that just come onboard without knowing how to manage their risk yet. Any money deposit on exchange for the purpose of trading is considered gone until you're able to withdraw and that's why people are advised to trade with the money they can afford to lose because profits are not guaranteed.

With your own capital, it's still not ideal to trade above your limit. I mean trading with amount you can not afford to lose. If you are trading with borrowed money, the pressure will be high and you're likely to make more dangerous decisions that can fast forward your lose because you're not trading with open mind but trading to be able to meet up with your lender.

[Hyphen(-)]

This has to be one of the worst decision a trader can make is to take a loan to trade because you can end up losing at anytime and when you do that with a borrowed money you put yourself in debt. Borrowing money to trade can also increase anxiety and pressure because when you would not want to lose the money you borrowed but at the same time this puts you under too much anxiety which can make uou take irrational decisions that would lead to losses. it is preferable to always stay trade with what you have and if you don't have capital then you should just wait until it comes, don't take risks that would put you in a precarious situation.

Loans to invest is never something good to do, you will never be comfortable to trade because you will panic in the trade. Since the money is not yours, you will not want to lose it in a trade, you can’t have the confidence to stick to your trading strategies even if the market price is doing some corrections, you will always be skeptical about losing that capital, and you can also be greedy to make quick profit so that you can easily payback the loan and start your own trade with your capital.

It is hard to make it with borrowed money because you can’t afford to lose the money. So you will hardly trade with one mind. It is better not to borrow money to trade. Only use what you can afford to lose, don’t borrow money to trade or invest, wait for your time, FOMO can mislead you, it is better to stay without investment than borrow money to invest.

[Muba20]

Trading is very risk and anything can happen is not advisable to borrow money and trade, many newbies are making such mistake of borrowing money to trade. And as you said its not advisable to borrow money to trade regardless of that business, especially the crypto space that is full of risk. Don't know what the result will look like, it's better to use what you have in what you are doing and gradually you will grow your own capital, and have much more than what you even wanted to borrow.

Even for professional traders, it's not advisable to borrow money to trade talk more of newbies that just come onboard without knowing how to manage their risk yet. Any money deposit on exchange for the purpose of trading is considered gone until you're able to withdraw and that's why people are advised to trade with the money they can afford to lose because profits are not guaranteed.

Trading with borrowed money puts more pressure on the trader than usual. Losing your own money may be a temporary cost for that money, but when you have to lose the borrowed money, the human pressure will also increase along with the cost of the loss. Moreover, it is true that there is no problem if a trader takes a break from trading with his own money, but when he tries to trade with someone else's borrowed money, it will be difficult to take a break from trading. The trader will always be thinking about paying back that money and losing it. The ability to trade independently will be lost. There is no guarantee of making a profit in trading. Even if a trader is skilled, he can lose all his money at any time. Some people may trade well, due to which their profit is high, but suddenly they can suffer a very big loss in a trade. That is why it is always appropriate to trade with the money that they can afford to lose in trading. If they borrow it out of greed or for any other reason, then the results of trading will change.