Borrowing to trade

[NoBias]

If you are trading forex, you're borrowing in a big way already. I would simply be adding to preexisting leverage. Whether I lose 10,000 I have, or lose what I'd be saving for the year, it's actually the same. UNLESS, I lose my job.

Incorrect, what you have is not the same as what you might have.

Losing your job and being broke is not nearly as daunting as losing your job and being in debt.

It's the difference between digging yourself out of a hole, or digging yourself out of a hole in the sand.

Trading with scared money is no way to trade.

 

[SimpleTrades]

Incorrect, what you have is not the same as what you might have.

Losing your job and being broke is not nearly as daunting as losing your job and being in debt.

It's the difference between digging yourself out of a hole, or digging yourself out of a hole in the sand.

Trading with scared money is no way to trade.

You're right about the scared money. I certainly do trade better when I'm also employed.

But you've made the same point I did: UNLESS I lose my job. So i guess that is the real question: how confident am I that will keep my job while paying off the debt?

 

[loyek590]

.... We have our first smart ass! Lol

I'm in favor of educating all the various body parts, especially the brain and hand which can operate a calculator. You asked a question, I gave an answer, good luck to you and your business, especially as to how it doesn't interfere with mine. LAYIS (for those of you new to the internet that means, "Laughing at you in silence."

 

[SimpleTrades]

I'm in favor of educating all the various body parts, especially the brain and hand which can operate a calculator. You asked a question, I gave an answer, good luck to you and your business, especially as to how it doesn't interfere with mine. LAYIS (for those of you new to the internet that means, "Laughing at you in silence."

That's ok, I've leaned on ET that it's impossible to post a new thread without a reply from at least one "peanut". Thank you for completing the gallery.

 

[loyek590]

That's ok, I've leaned on ET that it's impossible to post a new thread without a reply from at least one "peanut". Thank you for completing the gallery.

If you know you are such a good trader, why are you asking on the internet if you should borrow to fund your trading, when the answer is obviously "yes"?

 

[SimpleTrades]

If you know you are such a good trader, why are you asking on the internet if you should borrow to fund your trading, when the answer is obviously "yes"?

How does earning 200/month on $2000 make me such a good trader? By the way, every time I try to rely on compounding, I lose the money. I've achieved best results by simply withdrawing income and using it for something else.

How many of you have tried to bump up your trading income through a loan? Did you get good results or do you curse your bad decision? Is this a reasonable way to push myself to the next level?

 

[NoBias]

By the way, every time I try to rely on compounding, I lose the money. I've achieved best results by simply withdrawing income and using it for something else.

$2,000 acct compounding profits you lose, yet you believe that trading a $10,000 acct without compounding will be no issue for you. Do you not see the conflict in your logic?

Upsizing Demon is a considerable hurdle.

In addition you believe you can save $10,000/year and willing to risk this "future" savings. The question arises, if you are able to save $10K this upcoming year, why were you not able to save $10K the previous years? unexpected expenses? Does your income only cover living expenses, and you intend to downsize your lifestyle to accomplish your savings goal? OR, are you relying on Profits to quickly payoff the debt allowing to resume your normal standard of living?

Don't forget, if you do blow the $10K acct, to repay the debt will come from after tax dollars. Depending on your tax rate will be considerably more than $10K.

By your replies, it appears you are looking for justification to max out teaser rate credit cards, which by numerous methods will most likely revert to 20% interest rates long before the anticipated 18 month period.

So is borrowing money to trade reasonable and responsible? imho, Absolutely not.

Will you do so? Most likely.

The most responsible method to grow an account is organically, from trading profits. Not from cash infusion, reloads and loans.

 

[smallStops]

$2,000 acct compounding profits you lose, yet you believe that trading a $10,000 acct without compounding will be no issue for you. Do you not see the conflict in your logic?

Upsizing Demon is a considerable hurdle.

In addition you believe you can save $10,000/year and willing to risk this "future" savings. The question arises, if you are able to save $10K this upcoming year, why were you not able to save $10K the previous years? unexpected expenses? Does your income only cover living expenses, and you intend to downsize your lifestyle to accomplish your savings goal? OR, are you relying on Profits to quickly payoff the debt allowing to resume your normal standard of living?

Don't forget, if you do blow the $10K acct, to repay the debt will come from after tax dollars. Depending on your tax rate will be considerably more than $10K.

By your replies, it appears you are looking for justification to max out teaser rate credit cards, which by numerous methods will most likely revert to 20% interest rates long before the anticipated 18 month period.

So is borrowing money to trade reasonable and responsible? imho, Absolutely not.

Will you do so? Most likely.

The most responsible method to grow an account is organically, from trading profits. Not from cash infusion, reloads and loans.

He is really saying it like it is.
I will add, from my psychology understanding :
- you are now extremely confident because of your performance.
So because you are very confident, you believe somewhere you are on a
"average" winning streak.
Now, if the crystal ball told you, something will happen that will make
what you do now, not work in 2 weeks time :
will you still be willing to risk credit card debt money?
So you are only seeing the upside in trading.
When you should also assume first the downside.

Now, if you have some gambler personality - nothing wrong with that -
You say :"I will do this bet of adding with credit card debt and pulling in x $$$$"
BUT you need to accept you are into gambling mentality :
in this case risk big, to win big.
If you lose, you accept it, as now you are into "chance industry"
and hopefully you have done some "spiritual cleansing work" as good luck
is not always a given.

Please keep us updated

 

[SimpleTrades]

$2,000 acct compounding profits you lose, yet you believe that trading a $10,000 acct without compounding will be no issue for you. Do you not see the conflict in your logic?

Upsizing Demon is a considerable hurdle.

In addition you believe you can save $10,000/year and willing to risk this "future" savings. The question arises, if you are able to save $10K this upcoming year, why were you not able to save $10K the previous years? unexpected expenses? Does your income only cover living expenses, and you intend to downsize your lifestyle to accomplish your savings goal? OR, are you relying on Profits to quickly payoff the debt allowing to resume your normal standard of living?

Don't forget, if you do blow the $10K acct, to repay the debt will come from after tax dollars. Depending on your tax rate will be considerably more than $10K.

By your replies, it appears you are looking for justification to max out teaser rate credit cards, which by numerous methods will most likely revert to 20% interest rates long before the anticipated 18 month period.

So is borrowing money to trade reasonable and responsible? imho, Absolutely not.

Will you do so? Most likely.

The most responsible method to grow an account is organically, from trading profits. Not from cash infusion, reloads and loans.

Simply stated, I'm not willing to put all savings into a trading account. Others savings: down payment, education savings plans etc for my kids. I have been saving solid amounts up until now.

I guarantee most of you who save all of your trading income and attempt to compound it within your trading account, also lose it eventually. If youre going to rely on compounding that belongs in a long term investment account.

Also despite losing a few $2000, I have a net overall gain. I haven't lost any money from trading.


Anyhow, thanks all for the input.

 

[Swan Noir]

Assuming you can pay off the balance any time you choose you should take the full $10,000. The cost of capital in the first year is very low ... in fact low enough that you can take it and not use most of it right away. Take the money and increase your size gradually so you aren't in over your head. If your results stay good keep ratcheting up size but if you can't make the size work just pay off the balance and go back to square one.

Low risk proposition for you with a real upside. Go for it!!