Took out a loan to transition to full-time trading. 24 years old.

I took a look at his last video posted on yt. It was quite surprising. He let a long entry go -90 ticks on CL on a one minute timeframe chart!(?) and then watching it go like that pretty much the entire 6 hour+ session. The entry point was at a 1-min price action pattern where it would make more sense to go short, where if he didn't do that, could have stopped and reversed at least to make up for a scratch with a short win.

No indicators on the IB platform. There was a website charter but it seemed to be on 1 min timeframe also. No sign of s/r based on past days or past structure. No sense of r/r and no stop as mentioned. Maybe an "ACD" method? But at least have trade management for trades that go south. Letting the trade stay south so long could be indicative of psychological paralysis based on previous losses(one way to deal with that imo, is to take extended time off from trading to let the subconscious fade out the bad memories, then practice trade mgmt when starting again). Sorry, but it seems Wabu has a long way to go and needs to get a much better idea of market structure, price action, as well as having a plan on risk vs. ruin. Unless he's trying to be some kind of fundamentals timer or be a psychic at predicting the market without any TA which is such a long shot, sorry, I don't see his trading state going anywhere, not to mention overrisk and use of high interest loan and too small of an account. I'd echo previous suggestions like trading forex on MT4 for practice and he could do better with another platform's visuals than IB basic chart. Take some time off, build up a new account, read books on risk mgmt, then later start out again real small or sim for months at first.
 
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Loans for trading is, as a rule, pretty risky and generally I'd think no one including me would ever recommend it. But I did just that last fall. I had lost a few thou over the past year trading recklessly and disregarding proper risk control. By the time I learned enough to begin the process of internalizing what a trader should but often doesn't do to some very powerful and destructive psychological hardwiring that most traders struggle with, I had no money to trade. So I finally decided to hit up my credit card and opened a fresh account with $1500 to trade the emini Dow.

So that account has fluctuated since Sept '19, dropped at least three times that I remember to around $900, and recently high as over $1900. It's back down to $1200 as I write this. It's hard to trade a small account, and during the drawdown periods it is on the razor's edge of my having to close it down. That said, I have found out that is it possible to trade a small account if risk management is adhered to carefully which I haven't always done. And yes it's stressful, but then trading always is so what's new.

But at least the interest rate wasn't 26%. Under 9% now, not such a high bar to leap over. And the $1500 loan has effectively been paid off anyway. I'll be starting the earn2trade exam likely later this month, sooner if I lose the small account before then. I'll keep y'all posted. No ego here - trading burned that away some time ago.
 
I wonder if he used his home as collateral against the loan.

Personally, I would not do business with an organization called LENDO bank that had a domain address of .io ( British Indian Ocean Territory ).

No thanks.
 
insomniactrader said:
Loans for trading is, as a rule, pretty risky and generally I'd think no one including me would ever recommend it. But I did just that last fall. I had lost a few thou over the past year trading recklessly and disregarding proper risk control. By the time I learned enough to begin the process of internalizing what a trader should but often doesn't do to some very powerful and destructive psychological hardwiring that most traders struggle with, I had no money to trade. So I finally decided to hit up my credit card and opened a fresh account with $1500 to trade the emini Dow.

So that account has fluctuated since Sept '19, dropped at least three times that I remember to around $900, and recently high as over $1900. It's back down to $1200 as I write this. It's hard to trade a small account, and during the drawdown periods it is on the razor's edge of my having to close it down. That said, I have found out that is it possible to trade a small account if risk management is adhered to carefully which I haven't always done. And yes it's stressful, but then trading always is so what's new.

But at least the interest rate wasn't 26%. Under 9% now, not such a high bar to leap over. And the $1500 loan has effectively been paid off anyway. I'll be starting the earn2trade exam likely later this month, sooner if I lose the small account before then. I'll keep y'all posted. No ego here - trading burned that away some time ago.
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$1500 is an amount that can be paid off in a few months by taking a (extra) job. So no big deal there. However i completely agree it is difficult to trade such a small amount, i woule stick to micros if i where you.

Taking a loan of +$10K with such a high interest rate isn't a smart thing to do. If i where in this situation i would stop trading immediately and would take on 2 or 3 jobs to get rid of the debt as soon as possible.

If you are not careful this is going to chase you for the rest of your life ...

You blew up several times since you started this journal and i can't imagine your financial status is healthy, fix it before it is too late.
 
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DallasCowboysFan said:
$1500?........I misread it.......I thought it was $15,000 lol.
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The first part of my post wasn't about Wabu but regarding the post i quoted.

I went back to the first post to check and Wabu started with $9K of his own and an $11K loan from lendingclub.
 
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