Smart Money

Question for the pros on here…I am making money at this…so i need to get to the next level…but i don’t have the Liquid money to do it…$5000.00 seems to be the magic number as far as starting out and actually making a couple hundred a week…besides the obvious of losing it all…should i get a loan…if i am smart about it i can make money and pay the loan off at the same time…i proved being live for about 4 months that i can make money on a smaller 500.00 account…I made a STUPID decision and lost most of it but i learned from that and my 5000.00 demo is going good …Any thoughts on this
need to convince the WIFE …

If you really feel that you are making a continued profit
then take out the loan. First priority would be to pay the
loan back

Only YOU can decide whether you are ready to make this
step though, maybe an interim step may be better, $1000,
to prove to your better half that it works?

Would your sole ability to pay back the loan rely on trade wins?

If so, I would say don’t do it. The pressure to produce the numbers will make you into a different trader.

If you are not going to rely on trading to repay back the loan, then go see what your wife thinks.

Right now I am profitable with my trading. Right now I do have more money to bring up my trading account. But… I am not going to let myself until I accomplish certain goals with what I have.

No i wouldn’t rely soley on profits to pay back…my current job provides me with enough cash to pay my daily bills…and on a 5000 loan i could get a good rate…My thing is to take the PIPIN to the next level…a goal of mine about a year ago,to quit working for someone else and do this and earn a living…i think 5000.00 would let me get bigger profits…heck i just took 54 pips off of EUR/USD for a 3 hour trade, if i can make 100.00 a day i would be happy…Thanks for the advice

The fact that you blew up and haven’t traded live since does not, to me, suggest that you’re in a position where borrowing money makes sense.

I would avoid the loan - among other things, the pressure to pay back the loan might force you into bad trades -

MMOD ; I think since by your own addmision you blew your account out ,the prudent course would be to maybe refund with $1,000 and make certain the issue that took it the last time is solved… If you are truly ready it doesn’t take long to grow a account. Then when you are POSITIVE add on to your $2,000 or $3,000 you should have by then . Just my 2 cents worth… Ken

All good advice …thank you…

I would avoid the loan at al costs. I would suggest you set aside the monthly loan payment you would have to make and add that into your account each month.

Yes it will take longer to get to the $5k level, but it will serve two purposes, your account balance will gradually rise up which is good for the psychology of trading instead of $500 to $5k, and you also limit your losses at the same time.

Personally i would never borrow money to invest in FX market but to each ther own cause you surely need money to make money at this.

This is the best idea posted Cdawg.:slight_smile:

You will also get more screen and learning time in, without the risk, while growing your account.

Do not borrow or use your credit card to fund.

Also, the mindset when you are demo-ing is a
world apart from actual live trading with your
hard-earned money. So, never fool yourself.
Demo-ing is always easy and way easier than
when your real money is on the line showing
-500 or more on your trade.

I’m a beginner at this, (I have been trading live for about 3 weeks now and have been demoing for about 2 months)

Any ways, what you are contemplating I actually did, I took out a 5000 dollar loan at 7% annual interest, and I don’t regret it. The thing is I’m 21 and I’m on an army course right now, so I got the money to risk. Also my course is not boot camp (which I already finished) so I have my afternoon’s off. At 7% interest I only need to make about a dollar a day, so far I have made about 200 dollars, another 150 and I’m interest free for the year.

But there is a huge difference between real and fake, with fake I was averaging around 200 a day, no way in hell I’m going to try that with this money. I’m going to put in 5000 every 2-3 months and just double what I’m investing, I calculated by the time I have 50 000 grand using my current “wussy” method I should be able to make about 2-3 grand a month, which is a decent amount.

If you ask me I say go for it, try to make a dollar or two dollars a day, but trust me you’ll make more if u take things safe, and have patience, I made 30 dollars today, doing nothing. That’s money I didn’t have yesterday, I know it’s not impressive, but It’s a numbers game, I had to pay my bank a dollar today for the interest on the 5000 ( oh ya my broker gave me 40 cents to :slight_smile: )

Good for you kia!

If I had found out about FX trading when i ws 21, i would take the risk as well i think.

As I’m a wee bit older and possibly wiser (???), I tend to look at what is the worst thing that could happen. So if I happen to blow my account (which i’m not planning on doing EVER) then at least i won’t have the feeling of losing 5k and still owing it to the bank or whom ever.

My plan is to add funds every month untill I have a decent balance to generate a nice return but only after 1 year of succesfully trading my mini account.

I think by slowly ramping up your account balance, by the time you get to where you want to be, the numbers wont bother you and as 2pips pointed out, you’ll get alot more practice time. I dont think i could handle jumping from $1k to $100k in 1 day mentally.

Best of luck to you!

Many people think that taking a loan is a great idea. As has already been said, once you’re trading with the pressure to create returns to justify the loan, you can easily become an entirely different trader.

If you are really confident, then just stick with a small account, and build it over time until you have the $5,000.00 level that you wish to have. If you really are adept at this, then that will certainly happen in time. There’s no hurry. Don’t apply pressure to yourself that is unnecessary.

haven’t you ever hear of the terrible wallstreet stories… people borrow money in order to trade (some were professionals) who end up in serious financial problems, I would stick with the babypips statement “if you have 10k you can go mini, if you have 1k go micro, if you dont have that much then demo trade”

You havent even been trading very long and already gone through one account I say demo trade in my opinion.

Never think of potential profits but the potential risk

oh btw I forgot to mention, that on the 5000 I’m not using the profits to pay off my loan because that would create unnecessary stress, I pay 100-200 bucks a month out of my paycheck for the loan. Then I wait to save up another five thousand to deposit that, I have to pay 25 dollars each time so I’m not going to deposit money monthly, but ya 5000 is a magical number. I would never go in with a thousand

Thanks for the kind words cdawg, my goal is too reach 100 grand, it’s strange, the more money you have the safer this thing gets, I trade at 50 times leverage, and I go in with such a smallamount that I need to make 50pips to make any money, so I don’t really stress out, if I mess up, I just lower my average. That’s why I call it the wuss technique, but so far it’s been working

If you are planning on actually doing thins always remember bulls make money, bears make money while the pigs get slaughtered, don’t get greedy and go over the money management once again.

Thanks for all advices. But I’m not prefer to make any loan.

Demo and live are two pairs of socks. One could trade from 1k to a million consistently in demo and still trading live would be another thing.

Do just deposit what you can afford to lose is the cardinal rule. If you break that rule, how could you follow the other less important rules for trading to become successful?

It’s simple: If you are really successful, you do not need to deposit more than you can afford. Everything else you can get by trading.