Borrow money to trade

[Tungbulu]

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.

That’s right. Figuring out your own strategy that aligns quite well with your individual position, and sticking to it at all times, whether in profits or in loss, would also help to keep one afloat. Some people attempt changing or tweaking their strategies and maybe even copying someone else’s strategy, simply because they’ve experienced or are experiencing some losses, and rather than getting the way out they desire, they end up getting deeper and deeper into the mess they were initially trying to get out from.

[Shussainshah]

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.

Investing borrow money into Bitcoin is totally no sense if you have spare money ya pension money so you invest some % otherwise you can do DCA. But if borrow the money and Investing in Crypto is very much risky and that's make very hard to recover the lose if the market is crashing. I personally never suggested to anyone for Borrow money but if you have spare money that's it will make sense and if your statergy work then maybe you will be profitable.
Never invest borrow money into Crypto that's my advice to every Newbie which what's to double are triple the money in shortcuts way or faster way but if you have extra spare money then you risk it some percentage.

[Ishicryptic]

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.

Cryptocurrencies are very volatile and if you either want to trade or invest in them it is better to use your own money, not just using your money it would be better to use amount that if you lose you can easily move on because using borrowed money or your own substantial amount puts you under undue pressure. I very much agree that if you must take a loan to trade or invest you should make sure that it is what you can afford to repay as at when due not because you believe that you will get profit before the expiration of the loan. I think that it is desperation or overconfidence that makes people to borrow money especially for trading which is far more risky than investing, whatever that would put you under pressure where it concerns cryptocurrency buying and selling should be avoided and that is why taking a loan for it is bad idea.

[puloweh555]

Cryptocurrencies are very volatile and if you either want to trade or invest in them it is better to use your own money, not just using your money it would be better to use amount that if you lose you can easily move on because using borrowed money or your own substantial amount puts you under undue pressure. I very much agree that if you must take a loan to trade or invest you should make sure that it is what you can afford to repay as at when due not because you believe that you will get profit before the expiration of the loan. I think that it is desperation or overconfidence that makes people to borrow money especially for trading which is far more risky than investing, whatever that would put you under pressure where it concerns cryptocurrency buying and selling should be avoided and that is why taking a loan for it is bad idea.

Taking a loan to trade, in my opinion is a high risk decision. In trading markets especially the crypto market, prices are very volatile and even hard to predict. Even if you’re confident you can repay the loan on time, losses in trading can still happen within hours or days, so the debt keeps piling up making your income unstable to cover it.

Even in business it's the same. Although profit can be gained if your skills and understanding of the business are still limited, starting a business with a loan can actually mess up your finances. What I mean is, debt can be a starting step to begin, but without a strong foundation, loans often become a doorway to long-term financial trouble. So it's safer to build capital gradually from your own earnings while continuously learning, and only after that start trading or investing.

[Rhow]

Investing borrow money into Bitcoin is totally no sense if you have spare money ya pension money so you invest some % otherwise you can do DCA. But if borrow the money and Investing in Crypto is very much risky and that's make very hard to recover the lose if the market is crashing. I personally never suggested to anyone for Borrow money but if you have spare money that's it will make sense and if your statergy work then maybe you will be profitable.
Never invest borrow money into Crypto that's my advice to every Newbie which what's to double are triple the money in shortcuts way or faster way but if you have extra spare money then you risk it some percentage.

On the other hand, some people think that their income is stable, so they will invest the borrowed money and repay it later. Who will explain to them that in reality, life does not always go in the same way. Today, someone may start investing with borrowed money because he has a stable income, but what will he do if after a few days he loses his job, his income stops or his expenses increase? Then his mental stress will increase and he may be forced to sell. Because the loan repayment installments have to be paid on time.

[Jostle]

Borrowing money to "trade" is usually a bad idea. On the other hand, borrowing money to "invest" is slightly better (but still bad). Because the investment/trading can go both ways, and if it goes the wrong way, it will easily screw you over. That said, when one does borrow money to trade (and really wants to), then my recommendation is to keep the borrowing less than 10% of your entire networth so that you can pay back easily, and also have a repayment schedule in mind.

[Abu-Naim]

On the other hand, some people think that their income is stable, so they will invest the borrowed money and repay it later. Who will explain to them that in reality, life does not always go in the same way. Today, someone may start investing with borrowed money because he has a stable income, but what will he do if after a few days he loses his job, his income stops or his expenses increase? Then his mental stress will increase and he may be forced to sell. Because the loan repayment installments have to be paid on time.

The thing is that, you can’t be comfortable with borrowed money to trade, you will never afford losing the money, it is the same thing as FOMO because you wanted to do what you can’t afford, and if it is a borrowed money, you will want to pay back as soon as possible, meanwhile trading have no guarantee, and with borrowed money, it is worse’s because you will always be scared of losing the capital regardless of how financially stable you can be with your salary.

The simple advice is always the same, invest the amount you can afford to lose, and stop can’t afford losing borrowed money, you can’t use it to trade or invest if you want to be successful in trading.

[ndutndut]

On the other hand, some people think that their income is stable, so they will invest the borrowed money and repay it later. Who will explain to them that in reality, life does not always go in the same way. Today, someone may start investing with borrowed money because he has a stable income, but what will he do if after a few days he loses his job, his income stops or his expenses increase? Then his mental stress will increase and he may be forced to sell. Because the loan repayment installments have to be paid on time.

The thing is that, you can’t be comfortable with borrowed money to trade, you will never afford losing the money, it is the same thing as FOMO because you wanted to do what you can’t afford, and if it is a borrowed money, you will want to pay back as soon as possible, meanwhile trading have no guarantee, and with borrowed money, it is worse’s because you will always be scared of losing the capital regardless of how financially stable you can be with your salary.

The simple advice is always the same, invest the amount you can afford to lose, and stop can’t afford losing borrowed money, you can’t use it to trade or invest if you want to be successful in trading.

Whatever it is, using borrowed money for trading or investing is very risky. Even if you believe you can manage it because you have an income, we live in a world where no one knows what will happen next since income isn’t always stable. For example if you suddenly lose your job, your income stops, or expenses go up especially with inflation always being there but the debt still has to be paid on time. As a result, stress increases when the market doesn’t go as we predict, which can force us to sell assets at a loss. Trading is already high-risk and if you add trading with borrowed money, the negative impact usually becomes unavoidable.

So it's true, just like you said. When you start trading or investing, use money that you can afford to lose and don’t force yourself to borrow money just because you believe you'll make a profit in trading. Besides, using borrowed money usually adds extra psychological pressure when trading, like making emotional decisions out of panic. So the best advice is to completely avoid borrowing for trading to keep your trading journey healthy and financially stable.

[Loyang]

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.

That’s right. Figuring out your own strategy that aligns quite well with your individual position, and sticking to it at all times, whether in profits or in loss, would also help to keep one afloat. Some people attempt changing or tweaking their strategies and maybe even copying someone else’s strategy, simply because they’ve experienced or are experiencing some losses, and rather than getting the way out they desire, they end up getting deeper and deeper into the mess they were initially trying to get out from.

Yes, I completely agree with you. This is just like when we were young, when we were taking exams, we wrote about other people's books and the person whose books I wrote about made mistakes, I also made mistakes. Just when a person looks at someone else's investment method and creates his own investment method in the same way, he will be in the middle of a very big risk and if the person whose investment method he is creating his investment method makes a mistake, then you will also make a mistake.

A person should create an investment method according to their own financial situation and continue investing depending on their financial situation. If the person you are following invests $ 300 a month from his discretionary income and if your discretionary income is not $ 300 and if you also invest $ 300, then this will be a complete gamble and you may have to sell the holding before the end of your period and may face losses.

[Tungbulu]

Yes, I completely agree with you. This is just like when we were young, when we were taking exams, we wrote about other people's books and the person whose books I wrote about made mistakes, I also made mistakes. Just when a person looks at someone else's investment method and creates his own investment method in the same way, he will be in the middle of a very big risk and if the person whose investment method he is creating his investment method makes a mistake, then you will also make a mistake.

Well actually it was I who was copied from. And it just reminds me of back then when a friend of mine who sat close to me in an exam literally copied everything on my script, including my name , Hahaha I never knew people could actually be that dumb, that was literally the most hilarious moment of my life and even when I saw it and asked him why he copied my name, dude was even asking me which of them was my name .

But yeah you’re right, it’s just like that, blindly copying someone’s strategy can really mean serious trouble for you since you can’t even define the or explain the basis of that strategy or know what to do next when things take an unexpected turn.

[Awaklara]

On the other hand, some people think that their income is stable, so they will invest the borrowed money and repay it later. Who will explain to them that in reality, life does not always go in the same way. Today, someone may start investing with borrowed money because he has a stable income, but what will he do if after a few days he loses his job, his income stops or his expenses increase? Then his mental stress will increase and he may be forced to sell. Because the loan repayment installments have to be paid on time.

That situation is part of the investment risk from loans. There is a possibility that it could happen, but there will always be ways to mitigate that risk, such as short-term loans with amounts that are not too large.
Besides having an income that can be used for installments, there should at least be assets that can actually be sold if an unwanted problem occurs. If you can invest, you are certainly also able to consider the risks and benefits.

[Son Of Blockchain (SOB)]

Edited..

Well actually it was I who was copied from. And it just reminds me of back then when a friend of mine who sat close to me in an exam literally copied everything on my script, including my name , Hahaha I never knew people could actually be that dumb, that was literally the most hilarious moment of my life and even when I saw it and asked him why he copied my name, dude was even asking me which of them was my name .

But yeah you’re right, it’s just like that, blindly copying someone’s strategy can really mean serious trouble for you since you can’t even define the or explain the basis of that strategy or know what to do next when things take an unexpected turn.

Hahaha, the part where he copied all your answers including your name is very funny, i can't stop laughing dude. Sometimes, being dumb is not the case but exam pressure and tension, haven't you been in situation whereby words like "is" becomes too difficult to spell? Hahaha you just took me back to the good old school days. 
 Copy trading is very risky, although it is expected that the trader one is copying from must be an expert and mostly accurate with his/her analysis before using the strategy but having experience to manage the risk, like knowing how to use stop lose or set a max copy amount  so you don't lose completely if the person you copied is losing is important too.

[Tungbulu]

Hahaha, the part where he copied all your answers including your name is very funny, i can't stop laughing dude. Sometimes, being dumb is not the case but exam pressure and tension, haven't you been in situation whereby words like "is" becomes too difficult to spell? Hahaha you just took me back to the good old school days. 
 Copy trading is very risky, although it is expected that the trader one is copying from must be an expert and mostly accurate with his/her analysis before using the strategy but having experience to manage the risk, like knowing how to use stop lose or set a max copy amount  so you don't lose completely if the person you copied is losing is important too.

Lol I’m pretty sure this one wasn’t exam pressure, the dude was obviously dumb, because it was just staring straight at his face and he didn’t even see it…

Sometimes or should I say most times it’s really not about the accuracy of the person being copied from, but about the person who’s copying understanding what he’s actually copying. The trader being copied may be accurate in his analysis, and his strategy may be working just fine for him but you copy it and it doesn’t work for you, that’s just trading because every trader have their differences in their risk tolerance level, their financial situation, how much they’re willing to be patient and other factors that contributes to which strategy an individual should deploy or which would work for them. So the strategy may be right but the individual position isn’t aligning, there’ll definitely be a problem along the way.

[shawonngp]

Investing borrow money into Bitcoin is totally no sense if you have spare money ya pension money so you invest some % otherwise you can do DCA. But if borrow the money and Investing in Crypto is very much risky and that's make very hard to recover the lose if the market is crashing. I personally never suggested to anyone for Borrow money but if you have spare money that's it will make sense and if your statergy work then maybe you will be profitable.
Never invest borrow money into Crypto that's my advice to every Newbie which what's to double are triple the money in shortcuts way or faster way but if you have extra spare money then you risk it some percentage.

On the other hand, some people think that their income is stable, so they will invest the borrowed money and repay it later. Who will explain to them that in reality, life does not always go in the same way. Today, someone may start investing with borrowed money because he has a stable income, but what will he do if after a few days he loses his job, his income stops or his expenses increase? Then his mental stress will increase and he may be forced to sell. Because the loan repayment installments have to be paid on time.

Borrowing money is sometimes good or needed, like when you start a new business, or you have a stable income from which you can easily repay. But borrowing money for trading is undoubtedly a big risk, because there is more risk of loss than profit; if everything is lost, how can one repay the loan? If there is no other source of income and the crypto market is highly volatile, borrowing money for trading is very risky. Those who are greedy do this. Moreover, a lot of interest has to be paid on the borrowed money, which the borrower has to pay at a high interest rate. Despite having a stable income, many people get into a lot of trouble by borrowing money because, if their income suddenly stops for some reason, they cannot repay the loan.

[KingsDen]

Let's evaluate something...

Trade with $200 of your own money, make profits and that will all be yours and lose, you also bear it.

Trade with $1500 of a borrowed money, make $200 profits and you'll still be in debt.

Lose the money you will me in more mess.

I consider borrowing to trade as a double risk. Trading on its own is a risk, the borrowing is an added risk. Just trade with what you can afford to lose. Your friend will likely go bankrupt since you have perceived that he is addicted.