Getting a loan to day trade (but not to day trade)

[HolyGrail]

Quote from saluki:

Yes, folks, it's that easy.

LOL, you make it sound like you don't have to pay the money back.

 

[marketsurfer]

http://www.prosper.com/

 

[clacy]

Good luck with that. My guess is you are going to fail and have to pay back the $50k.

Let's just hope you don't expect the government to bail you out.

That seems to be the prevailing attitude for fixing one's problems.

 

[Reaver]

Quote from clacy:

Good luck with that. My guess is you are going to fail and have to pay back the $50k.

Let's just hope you don't expect the government to bail you out.

That seems to be the prevailing attitude for fixing one's problems.

I agree, there would be a lot of pressure if you had taken out a loan for trading capital...and it would really suck if you blew up and still had to pay it back.

It has to be hard enough just to recover (financially and psychologically) from a blow up in the first place, much less if you have to deal with the stress of being massively in debt on top of blowing up.

Ouch.

 

[HolyGrail]

If you're really good you can turn out like this guy.

http://boltar1.blogspot.com/

 

[marketsurfer]

there is nothing wrong with taking out a loan for trading capital, as long as you KNOW, you can pay it back regardless of outcome of your trading. take it out but not a penny more than you can pay back if you blow out, then GO FOR IT.

many of the trading greats started this way.


surf

 

[saluki]

I told BOA that it was for investing. Both times. They gave me money both times.

 

[HolyGrail]

Quote from marketsurfer:

there is nothing wrong with taking out a loan for trading capital, as long as you KNOW, you can pay it back regardless of outcome of your trading. take it out but not a penny more than you can pay back if you blow out, then GO FOR IT.

many of the trading greats started this way.


surf

If you KNOW you can pay it back then why not just wait until you can save the money before you trade? I cannot believe you are advocating this by saying the trading greats started this way. How many others lost? If you don't have the money to lose then don't trade until you do.

 

[Reaver]

Quote from HolyGrail:

If you KNOW you can pay it back then why not just wait until you can save the money before you trade? I cannot believe you are advocating this by saying the trading greats started this way. How many others lost? If you don't have the money to lose then don't trade until you do.

I see the point you are making, but many businesses start out with a loan to buy inventory and set up shop, etc. Even though they may could technically save up over a period of time...

In a way time is money, and of course fast isn't always best...but it's just a way of looking at it. It is a personal decision one would have to make. It's a highly individual risk-management decision.

 

[marketsurfer]

Quote from HolyGrail:

If you KNOW you can pay it back then why not just wait until you can save the money before you trade? I cannot believe you are advocating this by saying the trading greats started this way. How many others lost? If you don't have the money to lose then don't trade until you do.

easy, its the opportunity cost of money.


sorry if you don't understand, it makes perfect sense to me.


surf