getting a loan...please read!

G

Gordon Gekko

i know this doesn't really belong under "trading"...but...

i'm 24 and i've been trading daily since 1999. i've been through the bull and through the bear...i know what i'm doing. i keep very detailed statistics of my trades and i have a positive expectancy. the problem is, i didn't start with much money. after commissions and living off my account, i'm not making as much EXTRA money as i want.

my credit is 100% perfect. i've had credit cards since i was 18 and i've never missed a payment or even had a late one. as of right now, my credit card debt is zero. actually, my total debt in general is zero. anyway, last year i bought a 2001 car brand new. i took out about a $15,000 loan to help pay for half of it. the other half of the car was paid for with cash. the car is 100% paid for right now.

i know i could sell my car, but i really don't want to...although i know it is a realistic option. anyway, would it be possible to take out a $20,000 loan (say 3 year) and get a part time job to pay the loan + interest? i would keep my car and only sell it if i somehow lost the $20,000 loaned money. i know some of you may say there's a good chance that could happen, but i know myself and it wouldn't. my only problem is, who would give me a loan to trade stocks with?! i don't know much at all about loans, but how could i get one? could i tell a bank i need a loan for something else? what if i show my car to a bank so that they see i have something of value (so they know that if i lost the loaned money, i could just sell my car to pay them back)? what can i do?

thanks
 
Hello Gordon.
According to what you have told us, you paid for half of the car with $15,000 and financed the other half. So you are in possession of a $30,000 car that continues to depreciate in value with every passing day. If you are committed to trading then you might want to think about selling the car and using that money as trading capital. You can buy a decent used car for basic transportation and still have enough left to start day trading.
Even if a bank gave you money against your "precious automobile" and you lost that money trading, you would be out of the car and out of money. If you traded your own hard earned money, you would probably trade responsibly.
Lastly, it would not be advisable to take out a loan for something as fickle as day trading(according to the masses). Loans are for major purchases like a house which will appreciate in value unlike your car. Wish you the best.
 
thank you both for your posts. you're already helping me! much appreciated!

i don't really need to do this additional post, but i might as well if anyone is interested.

my thinking is, if i had an additional $20k to add to my trading account, i could live off my account and still have a good amount of excess money in about a year. in 3 years, the loan would be paid off and i would be pretty much all set at age 27. also, since i'm under 25, i figure now is the time to be risky. i have zero debt, i'm not married, i have no kids...and a $20,000 loan could be paid back pretty easily, even if i lost it all. working 2 jobs for a while to pay back the loan as a worst case scenario isn't that bad.

born2trade, i understand what you're saying..about my car's value decreasing every day. technically, i do agree with you that it is better (financially) to sell the car. however, in real life, being a 24 year old guy...it's important to have a nice car when you go out with girls. AND WHAT'S REALLY MORE IMPORTANT THAN GIRLS?! lol
 
Getting a loan to daytrade with is probably impossible. However, getting cash isn't necessarily difficult. The banks managed to push through Congress a bill that makes it much more difficult for someone to erase their credit card debts by filing bankruptcy. As a result they've been flooding the market with credit offers - not just for credit cards but for unsecured loans or lines of credit too.

We're not just talking crappy 19% interest credit cards here. I've got good credit too, my credit cards are tied to the prime rate with no added interest, and lately I've been getting offers for "prime for life" loans and the like. Meaning, if you've got the good credit you say, you may be able to secure the money you need at less than 5%.

Check with your bank too - if you've been a good customer, you may be able to secure a line of credit which, again, is basically an unsecured loan to do with what you wish.
 
I think you should find a local drug dealer or loan shark. They lend money for things like this. Trading under those circumstances is much more exciting. You wont have to worry about losing your car just your legs. Who needs legs when trading your sitting anyway.
 
better yet, sell the car and become a loan shark ! Guaranteed 20% a week income !

Seriously, DO NOT go into debt in order to trade. Dumb, Dumb, Dumb, bad, stupid, foolhardy, etc.
 
You can easily get an unsecured line of credit from a bank. I don't know how much they will lend.

I did the same thing when I was 26. I took out a $7,500 personal unsecured line of credit. The terms were not attractive but since it was unsecured, the bank did not ask what the purpose was.
 
Truly the best thing can do is stop trading for six months.

Cut back your expenses to a bare minimum, get a regular job and save all your money. After six months you will have been able to save enough money to give it a try again.

Forget about the loan, keep in mind this is a long process to become successful, many starts and stops, many obstacles to overcome. This is a lifteime carreer and you will have many years of good trading ahead of yoiu, be patient. The markets are always moving and the markets will be there when you are ready in six months....

Good luck...
 
Life is about priorities, what's yours?

I would sell the car as it is a deprciating asset; and then lease a new one if that is what you need(a shiny new car); otherwise buy a car whose current design hasn't changed for 3-5 yrs and buy the older version at 1/3 the original cost, examples would be the super beetle or the mazda miata etc.

woman like the man and the bulge in your pants, not the car.:D
 
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