Borrow money to trade

[WatChe]

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.

Those who are new to trading must spend time in learning trading skills and techniques. Newcomers must not invest huge money straight away into trading because its a wild fire that only experienced traders can tackle. Borrowing money for trading is a huge risk and is discouraged for all tiers of traders. Consider the case in which you have borrowed money for trading and you lost that money. Now you have to repay that money on time to lender with interest otherwise fine will also be charged. If you have money in your pocket then trade with it otherwise just refrain from it. 

[fredericktaylor]

Trading with a borrowed money is like pressuring yourselves and placing your peace in a kind of tight corner that you wouldn't be able to come out easily.  Moreover, the last time I checked trading is not a do or die affair, nobody will question you or whatever if you decide not to trade so I don't understand this whole idea of taking loan just to trade, this is just so unusual.

Trading is a must for a person, there is no obligation for it, if you do not have proper knowledge about trading and cannot afford to lose money, if you start trading with borrowed money beyond your means just for the sake of getting rich quick, this will create additional economic pressure on yourself, as a result of which you will face mental and financial losses. Do not only think about quick profits, of course, it is very important to manage risk. If you think that you will repay the borrowed money quickly by trading, then you have definitely made a foolish decision.

Trading isn't that bad but the way some people go about their trading stuff, I'm beginning to be scared because they have make it look so horrible if I am not missing words.  The best we can do if will want to trade is to trade with the little can can easily give away and again we should ensure we take away that negative mindset of borrowing just to trade and everything will be fine.

There is a risk of losing money through trading but if a person uses the right knowledge and strategy and understands the volatility of the market and controls his emotions, enters the market at the right time and controls his emotions and exits the market at the right time, the risk of losing money is reduced and the possibility of profit is increased. Through trading, a person's knowledge strategy understanding the volatility of the market and controlling greed reduce losses and increase the possibility of profit.

[kawetsriyanto]

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.

I can agree with this. Someone like him that he doesn't know well trading, can spend money only with daytrading. Since he does it daily, it is easy to lose huge money in a short time. You can be right, he may think he still doesn't earn enough money and he tries daytrading to get more money. Unfortunately, he doesn't trade with improper way and he becomes too aggressive in using capital. So, he ends up with borrowing money and trapped into it because he has no money anymore for the repay the borrowing money.

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.

Yep. Someone decides to borrow money because he has no money anymore. If he still has money, he actually doesn't need to borrow money. However, I'm quite surprised that he spent a lot of money even though he still can't prove to earn good profits from trading. This should be a lesson for other people that we should never think to borrow money because it just leads to more complicated problem.

[free-bit.co.in]

There is a risk of losing money through trading but if a person uses the right knowledge and strategy and understands the volatility of the market and controls his emotions, enters the market at the right time and controls his emotions and exits the market at the right time, the risk of losing money is reduced and the possibility of profit is increased. Through trading, a person's knowledge strategy understanding the volatility of the market and controlling greed reduce losses and increase the possibility of profit.

What you said isn't wrong, and I believe most trader already know this. But knowing what you should do is one thing, actually being able to do it is another.
The market never stop moving and constantly put you under pressure, making it hard to stay calm and stick to your original plan.
It's always easier said than done, especially when it comes to controlling your emotions while your money can be lost at any time.

[Achalugo BTC]

What you said isn't wrong, and I believe most trader already know this. But knowing what you should do is one thing, actually being able to do it is another.
The market never stop moving and constantly put you under pressure, making it hard to stay calm and stick to your original plan.
It's always easier said than done, especially when it comes to controlling your emotions while your money can be lost at any time.

Of course, most traders are aware of the potential risks involved in trading. But they are not ready to adhere to the rules necessary to remain profitable and successful in trading. That is why it's easy for them to state those rules but they are unable to stick to them. There is no doubt that one of the main reason why they find it difficult to stick to the rules is because they lack discipline and if they are able to control their emotions, they will find it easier to stick to their plans despite the ups and downs of the market.

[YOSHIE]

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.

If your friend knows the situation of crypto assets in trading, of course he will not borrow and bear the high risks that can occur at any time in trading on the crypto market, volatility is quite extreme, When the graph goes down, nothing can hold it back. When our trading assets disappear instantly, of course your friend will feel the debt burden.

But if your friend is an expert in crypto trading, actually in the trading mechanism there is a loan funding option that can be done, such as the Binance or Nexo exchange, they provide something called Crypto Lending, where your friend can borrow other assets, such as USDT to use for trading, rather than borrowing money outside and using it for trading, which is more risky or the Margin method, although all of this is risky, it is not as serious as borrowing funds from a bank or other.

[Qhunman]

Trading is a must for a person, there is no obligation for it, if you do not have proper knowledge about trading and cannot afford to lose money, if you start trading with borrowed money beyond your means just for the sake of getting rich quick, this will create additional economic pressure on yourself, as a result of which you will face mental and financial losses. Do not only think about quick profits, of course, it is very important to manage risk. If you think that you will repay the borrowed money quickly by trading, then you have definitely made a foolish decision.

In my opinion,trade is optional, it is not compulsory that you must be a trader before you can make good profits,some people also make good profits from investing in bitcoin for the long term so it isn't everyone that likes to get involved in trading. And again, it is when you know how to trade very well that you can be able to make good profits and you must be a professional before you can know how to analyse the market well. As a trader you need to have your trading tools that will help you in your trades, and again having your tools or being a professional isn't a guaranteed that you will not lose your money as loss is inevitable,any money that you are using to trade should be what you can afford to lose. However,I don't think it is a good idea to borrow money to trade because it is risky. trading is similar to gambling, there is no guarantee that your trades will go as there are plan.

[ChocolateBitcoinK]

There is a risk of losing money through trading but if a person uses the right knowledge and strategy and understands the volatility of the market and controls his emotions, enters the market at the right time and controls his emotions and exits the market at the right time, the risk of losing money is reduced and the possibility of profit is increased. Through trading, a person's knowledge strategy understanding the volatility of the market and controlling greed reduce losses and increase the possibility of profit.

What you said isn't wrong, and I believe most trader already know this. But knowing what you should do is one thing, actually being able to do it is another.
The market never stop moving and constantly put you under pressure, making it hard to stay calm and stick to your original plan.
It's always easier said than done, especially when it comes to controlling your emotions while your money can be lost at any time.

Actually I think all of this is due to emotions and greed. Everyone knows how important it is not to over trade and not make decisions based on emotions, but is this true for some people? When they lose money and face some losses, they do not think realistically for a long time, but rather they get more emotional because of this loss. At such times, a wrong decision leads them to make even bigger wrong decisions. And from there, their losses keep increasing. And so to avoid such situations, you have to control your reaction, which is a difficult task, but not impossible, there are many traders who continue trading by keeping their emotions under control and controlling their reaction.

[Chilwell]

What you said isn't wrong, and I believe most trader already know this. But knowing what you should do is one thing, actually being able to do it is another.
The market never stop moving and constantly put you under pressure, making it hard to stay calm and stick to your original plan.
It's always easier said than done, especially when it comes to controlling your emotions while your money can be lost at any time.

Of course, most traders are aware of the potential risks involved in trading. But they are not ready to adhere to the rules necessary to remain profitable and successful in trading. That is why it's easy for them to state those rules but they are unable to stick to them. There is no doubt that one of the main reason why they find it difficult to stick to the rules is because they lack discipline and if they are able to control their emotions, they will find it easier to stick to their plans despite the ups and downs of the market.

Lack of emotional control is actually their biggest problem that is why they did not stick to the rules, patience is something that is required when it comes to any trading but new newbies don't think twice when taking such risk. Honestly even the professionals today actually learn how to control their emotions before they get to that stage that we are seeing them now, it's takes time and consistency to make someone achieve their goal, but newbies don't want to spend that time and that is why we are seeing a lot of them making so many mistakes they can avoid.

[Oshio-man]

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.

You can take a loan to invest in bitcoin, but taking loan to trade bitcoin is a big risk that will make you not to forget what happen to you in bitcoin trading especially when you are losing dollars because you will not be comfortable at the moment, I have learn a lot from some traders that tried such but few traders that can be proud of what they experience from bitcoin trading because they have enough funds to continue trading to recover the amount of funds they have lost in the past.

[Rockstarguy]

Those who are new to trading must spend time in learning trading skills and techniques. Newcomers must not invest huge money straight away into trading because its a wild fire that only experienced traders can tackle. Borrowing money for trading is a huge risk and is discouraged for all tiers of traders. Consider the case in which you have borrowed money for trading and you lost that money. Now you have to repay that money on time to lender with interest otherwise fine will also be charged. If you have money in your pocket then trade with it otherwise just refrain from it. 

One thing about people who always think of borrowing money to trade is that they have the confidence that they will surely make double the money to repay the loan. However, trading is not always like that because the market is unpredictable. 

Borrowing money is not a good idea; it may work on the first attempt, but a second attempt may end up as a loss. The main problem is that one has already put it in their mind as a plan for trading, which can put a trader in serious debt. Those who think of trading with borrowed money don't just try it once; they make it a habit.

[puloweh555]

One thing about people who always think of borrowing money to trade is that they have the confidence that they will surely make double the money to repay the loan. However, trading is not always like that because the market is unpredictable. 

This is what often happens with the mindset of every beginner. They think trading is a way to multiply money, and this is what motivates them to borrow money. In fact, this mindset is just like borrowing money to gamble both are very bad decisions that can even destroy their finances in the long run, especially when their desires aren't met, making debts hard to pay off, not to mention that every debt comes with interest.

Borrowing money is not a good idea; it may work on the first attempt, but a second attempt may end up as a loss. The main problem is that one has already put it in their mind as a plan for trading, which can put a trader in serious debt. Those who think of trading with borrowed money don't just try it once; they make it a habit.

This is also the most dangerous when it comes to loans, especially after succeeding once with the first loan, then next time you’ll try to do the same thing, and it can become a bad habit. So basically, for beginners, never borrow money for trading because the crypto market is unpredictable, the debt risk is high, and it can turn into a bad habit. Only use your own capital that you can afford to lose, even if you believe you can make a profit from trading. Even if you see others succeeding by borrowing money, you have to resist that urge so you don’t borrow. The impact can be pretty serious especially if borrowing becomes a bad habit.

[free-bit.co.in]

Actually I think all of this is due to emotions and greed. Everyone knows how important it is not to over trade and not make decisions based on emotions, but is this true for some people? When they lose money and face some losses, they do not think realistically for a long time, but rather they get more emotional because of this loss. At such times, a wrong decision leads them to make even bigger wrong decisions. And from there, their losses keep increasing. And so to avoid such situations, you have to control your reaction, which is a difficult task, but not impossible, there are many traders who continue trading by keeping their emotions under control and controlling their reaction.

Yea, emotion and greed are among the biggest reason traders lose money.

Controlling them is not impossible, but like I said, it's alway easier said than done. The reality is that not nearly as many traders can do it as you might think.

Just look at the number. Most studies put the percentage of losing trader above 90%, with some estimates going as high as 97%. I have never seen any study or survey showing that most traders are actually making money.

[WhoYouCantKill]

Yea, emotion and greed are among the biggest reason traders lose money.

Controlling them is not impossible, but like I said, it's alway easier said than done. The reality is that not nearly as many traders can do it as you might think.

Just look at the number. Most studies put the percentage of losing trader above 90%, with some estimates going as high as 97%. I have never seen any study or survey showing that most traders are actually making money.

It's not easy for one to make a profit from trading, as most traders find it difficult to control their emotions and greed. But it doesn't mean that all traders are like that, there are some who can control their emotions when trading, even when they are losing. Because they have the mindset that the market is too unpredictable to know what will happen, so they are always ready to accept that losses are part of trading. And that is why not everyone can trade or hold, because not everyone can withstand the pressure that comes with both.

[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.

You can take a loan to invest in bitcoin, but taking loan to trade bitcoin is a big risk that will make you not to forget what happen to you in bitcoin trading especially when you are losing dollars because you will not be comfortable at the moment, I have learn a lot from some traders that tried such but few traders that can be proud of what they experience from bitcoin trading because they have enough funds to continue trading to recover the amount of funds they have lost in the past.

Is investing risk free? It may be less risky than trading, but it still carries risk and nothing is guaranteed. So taking a loan to invest isn't a wise idea either.

Taking on debt should be based on your ability to repay it, not on whether the investment has the potential to make a profit. If you cant repay the loan when the investment goes bad, don't borrow in the first place. Otherwise, it could end up being one of the worst decision you make.

[Issa56]

many newbies are making such mistake of borrowing money to trade.

Most newbies we see trading don’t even understand what trading is all about, they don’t understand how trading works, some of them are just so desperate to make money from trading, they see trading as a place where they can make quick money, so they do take loan, and start trading with the money, some of them believes the more capital they having, that’s going to determine the profits which they going to be making.

The capital you having alone won’t determine profits which you going to be making, you might be having big capital, if you don’t properly understand how to trade, you might be losing most of your capital, or you might not be making any reasonable amount of money.

When we want to start trading, we shouldn’t be deceived by the videos we see online, most of them are fake, they just making contents, they are after engagement. Trading isn’t that easy the way most people think, and we can easily lose money if we not careful.

[GIF-JOBS]

Yea, emotion and greed are among the biggest reason traders lose money.

Controlling them is not impossible, but like I said, it's alway easier said than done. The reality is that not nearly as many traders can do it as you might think.

Just look at the number. Most studies put the percentage of losing trader above 90%, with some estimates going as high as 97%. I have never seen any study or survey showing that most traders are actually making money.

It's not easy for one to make a profit from trading, as most traders find it difficult to control their emotions and greed. But it doesn't mean that all traders are like that, there are some who can control their emotions when trading, even when they are losing. Because they have the mindset that the market is too unpredictable to know what will happen, so they are always ready to accept that losses are part of trading. And that is why not everyone can trade or hold, because not everyone can withstand the pressure that comes with both.

actually the key to anything is to keep your mindset right. When there is profit, everyone has a lot of confidence, but profit will not always happen, and when they start losing, they take excessive risks on the basis of emotion, rush to recover the loss and ultimately turn small losses into big losses. So the most important thing is to control themselves and keep their mindset in check. When greed and emotions are in excess among people, they lose their real knowledge through them, and at this stage they make many wrong decisions which cause big losses for them. And this is why patience, discipline, risk management and the ability to control their emotions are more important in all cases. These protect and prevent people from making wrong decisions.

[Queen uloma]

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.

Those who are new to trading must spend time in learning trading skills and techniques. Newcomers must not invest huge money straight away into trading because its a wild fire that only experienced traders can tackle. Borrowing money for trading is a huge risk and is discouraged for all tiers of traders. Consider the case in which you have borrowed money for trading and you lost that money. Now you have to repay that money on time to lender with interest otherwise fine will also be charged. If you have money in your pocket then trade with it otherwise just refrain from it. 

You’re very correct, people who are new in trading should spend more time in learning trading skills and techniques. As a new beginner investing huge amount of money can either make you lose all your money, if it didn’t go as expected. Just as you have said, borrowing money to trade is a very big risks and it’s very unacceptable for beginners.

There’s a big difference between your own money and that of borrowed one, if it didn’t go as expected, you may end up being in debt. For me, if you have any amount just start with it, otherwise withdraw yourself from it.

[Itz-prisigold]

Is investing risk free? It may be less risky than trading, but it still carries risk and nothing is guaranteed. So taking a loan to invest isn't a wise idea either.

Taking on debt should be based on your ability to repay it, not on whether the investment has the potential to make a profit. If you cant repay the loan when the investment goes bad, don't borrow in the first place. Otherwise, it could end up being one of the worst decision you make.

You're totally right. Taking a loan to invest is one of the worst decision someone can make. When you borrow money to invest in Bitcoin and whenever the price of Bitcoin eventually start crashing,  the pressure to recover the money can easily make you panic and start making emotional decisions.

And the bad side about taking loan to start investment is that, the loan doesn't care whether your investment is doing well or not.  So even if Bitcoin keeps falling and your investment is temporary in loss, it's still compulsory for you to paid back the money you borrowed.  And this can eventually put you in a situation where you'll have no other choice than to sell your coins at a bad time simply because you need to meet up with the deadline of the loan.  So even though taking loan to trade is very risky, that doesn't make taking loan to invest a good decision either.

[kawetsriyanto]

Is investing risk free? It may be less risky than trading, but it still carries risk and nothing is guaranteed. So taking a loan to invest isn't a wise idea either.

No, investing in any asset must have its own risk. The difference may be in the level of the risk. Sure, even we invest in less risky asset, it isn't a wise idea to take a loan because there is no guarantee 100% for the profits. The best way is always using our excess money for investment.

Taking on debt should be based on your ability to repay it, not on whether the investment has the potential to make a profit. If you cant repay the loan when the investment goes bad, don't borrow in the first place.

Agree, taking a loan must be based on our capability. We only take a loan with the amount of money that we can repay. However, I personally prefer to avoid taking a loan for investment. Why we must take a loan? If we still have no enough money, we can save/collect money gradually. Then, we can invest when we have enough money. This way is much safer than investing with loan money.