I couldn't find any thread talking about borrowing money from credit card to trade. If professional(full time) traders can trade with profit 5-10% per month are they using credit card to trade bcos the profit well above over interest charges. And one more thing, Credit card is the most quick and easy way to get the loan without hassle.
Here is my problem:
right now my profit about 4-5% a month for few months( 3-4 yrs experiece) I'm trading now with micro lot. but I'm trying slowly to increase my lot size so won't hurt my emotion in trading.
Right now my initial capital is $6000 but my credit card allowance is $50,000 and I expect my average income $100 daily.
How can I use my credit card to earn more profit from trading say 'money management' because most of all businesses borrow money to run their businesses even banks also have to pay interest to their customers to trade(ofcos with much much lower interest). But trading is rather different due to emotion. So I need some advices from experience traders or financial advisers. All comments would be appriciated.
Now it's my business planning
I'm looking at my trading results few months ago my trading result improve dramatically due to I was working hard & understand market more.
I put my initial cash in my account $600 I'm trading with $0.4/lot and average my profit daily $3.8 so 20days trading/month my profit is average $76. so actually my profit monthly is 13% for the last few months but yearly was 4.6%/month
Then I began to think CC charges 1.75% per month so I'm better off 2.85% for 4.6%/month. Then I looked at 13% profit for the past few months. Wow 11.25% profit then I began to think of Credit card borrowing.
To make it simple I'll beginning of 2% risk management
my total loss per day is $300 so my capital should be $15,000
So I'm thinking of using my cash $6000 and borrow $9000 but not stright away.
I first borrow $1000 then my initial capital $7000
my condition to increase my capital is:-
1. borrow another $1000 when my profit is $1000& plus interest and increase $1000 borrowing each time(when profit is $1000+interest). Keep adding up until it reachs target $15,000
2. borrow extra $1000 when my profit is 2times of interest - pay off interest. Increase $1000 borrowing when my profit is 2times of interest (thinking 2-5 times of interest). Or any suggestions.
If bad month either clearing of off all the loan and start counting 1 again or paying off part of the loan on percentage of loss.
And actually I think I might put in the account only 25% so $15,000 is $3750 and will increase dramatically if profit is good. Bcos I think if we loss 10 in the row or the account is losing badly then we have to stop & think how to improve trading skill & finding the fault of our trading.