Borrowing to trade

xandman said:
eurusdzn is right. You should grow your capital gradually. For $2k, I would trade $10k lots for $4k,$20k lot.
I would probably loose sleep if i doubled my position size on my futures and options accounts...well not really...

There is a big psychological factor managing increasing amounts of money. Include the financial obligations born out of your trading enterprise. That's a lot on your shoulders all at the same time.

If you are as consistent as you claim, then there is no need to rush further unless you are exploiting an anomaly that may vanish.

My best year for capital buildup was when I switched from Starbucks to Sanka.
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have you ever tried Postum? That's what my grandfather drank when the caffeine was just killing him. It was a hardcore Morman drink. (and he was hardcore born again Christian)
 
at any rate, I don't know what a "Lot" is, that must be something people who live in experimental European contries do. Here in the USA, we trade actual dollars, and I know what it takes to "win" a dollar, and what it takes to "make" a dollar, and I would probably not borrow to win.
 
As a rule of thumb it's a good idea to match your liabilities to a like-kind asset.

Borrow as much from your credit card that you can pay off strictly from your savings. If you succeed in your trading you will have extra cash, if you fail you will lose your savings for the year, but no more.

Effectively, you should be taking the present value of your annual savings from salary and putting that in your brokerage account.
 
xandman said:
eurusdzn is right. You should grow your capital gradually. For $2k, I would trade $10k lots for $4k,$20k lot.
I would probably loose sleep if i doubled my position size on my futures and options accounts...well not really...

There is a big psychological factor managing increasing amounts of money. Include the financial obligations born out of your trading enterprise. That's a lot on your shoulders all at the same time.

If you are as consistent as you claim, then there is no need to rush further unless you are exploiting an anomaly that may vanish.

My best year for capital buildup was when I switched from Starbucks to Sanka.
More...


I doubt it's an anomaly. I have several strategies, but the most effective is a trivially simple fading strategy, where I hold the trade for a fraction of a time period in a given chart ( 5 min, 15 min, 1 hour chart etc. ) after a sudden move in the direction of the prevailing trend.

I've traded on margin before, but never a direct loan like this. Not sure how the psychology of a loan like ths will impact me.
 
newwurldmn said:
As a rule of thumb it's a good idea to match your liabilities to a like-kind asset.

Borrow as much from your credit card that you can pay off strictly from your savings. If you succeed in your trading you will have extra cash, if you fail you will lose your savings for the year, but no more.

Effectively, you should be taking the present value of your annual savings from salary and putting that in your brokerage account.
More...

Yes, you're right. The monthly payment on the debt was intended to be a portion of my monthly savings. So, I'd be using the credit card as a way to take an advance against that years savings.
 
SimpleTrades said:
I doubt it's an anomaly. I have several strategies, but the most effective is a trivially simple fading strategy, where I hold the trade for a fraction of a time period in a given chart ( 5 min, 15 min, 1 hour chart etc. ) after a sudden move in the direction of the prevailing trend.

I've traded on margin before, but never a direct loan like this. Not sure how the psychology of a loan like ths will impact me.
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why not just approach the United States government and tell them you have a novel new way to make money, and borrow a couple of trillion and get them out of debt?
 
None Business said:
This is an unusual card. Most credit cards promoting "0% interest" charge 3% fee to advance cash then require (only) 1%/month minimum monthly payments be made against the balance. OP's only charges a 1% fee but requires monthly payments towards the balance that are much higher it would appear.

Most American small business are started with credit cards, by the way.

I will say, while caution is warranted, fear will debilitate you if you're inclined to worry a lot. Trading in personal funds can drive you insane. It's incongruous with the rest of ours lives. I'm the kind of person who will switches cheese at the grocery store to save 40 cents. But if I lose a tick on a trade that can be $100. It's very bizarre to live in both worlds at the same time.
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You raise a very good point about how the balance transfer works. I need to get clarity from them. The monthly payment I stated, was my own plan, not their requirement. I don't know what the minimum payment requirement is. Also if I use this card to buy other things, in what order is the payment applied. Most importantly, what happens if I fail to pay the full balance on new purchases in a statement period?

I need to get clarity. I've never done a balance transfer before. Thanks
 
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Similar to inviting an Alcoholic to an Open Bar...

Borrowing to Bet is the path to destruction...
 
NoBias said:
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Similar to inviting an Alcoholic to an Open Bar...

Borrowing to Bet is the path to destruction...
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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.
 
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