It’s never a good idea to borrow money for trading. Instead, start with a small amount of trading capital. There are many brokers who allow trading with even $5 or $10. So you can start with a small sum and keep reinvesting that amount for growing your capital.
The most important rule of trading is never trade with money that you can’t afford to lose.
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I think if you are confident with a system and are showing profit you could take a loan from your savings, 401k, or personal loan. I’m not opposed to borrowing money as long as you make paying it back priority.
Scared money doesn’t make money, so if you are hesitant on a loan then you shouldn’t trade because you doubt yourself. Forex or trading isn’t about fear and doubt, it’s methodical and you need patience as well as confidence.
Saying borrowing is bad is like saying don’t buy that house, car, tv unless you can pay it cash.
Put your best foot forward and do not overthink it.
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Personally I don’t even like using leverage to trade hence the reason why I only really trade options contracts as I like to reduce my risk. A big part of trading is learning how to control your emotions and trading with facts and using your trading plan. If your borrowing money to trade you should not be trading. I would suggest using you own money, £100 to £1000 and scale up 1% per day till you hit 30% increase then scale up to next amount.
Personal once you have gained knowledge you shouldn’t really be trading with anything less the £25k, this is why in the US the have PDT once you fall under $25k.
How about if the trader are already consistent to trade, it is OK to borrow or loan money to trade? What do you think guys?
Yes I agree that bro. Why not try to borrow or take loan if you are already consistent to trade. Only risky to borrow money or loan if you are not consistent specifically for newbie. Risk is came from investing anything that you don’t know what you are doing
I agree with you. One of the key rules of forex trading is to not exceed more than 1-2% leverage from the brokers despite how enticing the offer seems to be. One may end up losing more than he gained with high leverage.
If you can triple your demo account then borrow half of your initial capital. Go for funding pro firms if you have an edge than borrowing.
In forex, there are a thousand ways to win and a thousand to lose, how many ways have you mastered for you to think of borrowing for trading?
Starting up a business requires seed capital, so you better start small by using your own capital. One professional trader said that the Market taught me the rules of the game. Few succeed in this Game by using borrowed funds. Your success will depend on how you lose and how it affects you. If you lose your borrowed money what will be the effect on your life?
I am not in favour of borrowing money for trading since it is risky and nothing is certain so just start with the money that you have saved or which or already have
It is a big NO for me, because at first, you have to know that there is a huge risk in borrowing funds from someone and returning those funds can be proven to be difficult if your sole income is only trading.
And secondly, if you do not have money to trade, then you cannot expect a good return.
using borrowed money will probably effect your performance /trading psychology unless your a very grounded person
I personally don’t think that borrowing money to trade is a good idea. Trading is a risky business and you never know what the outcomes can be. The chances of making profits are equal to the chances of losses. This is why traders are always suggested to risk what they can afford to lose.
If you do not have a reliable and consistently profitable strategy for your trading, do not borrow money to trade. If you are losing say, 10% of your account per month, whether you start with a thousand dollars or ten thousand dollars, you will still be losing 10% of your account per month. No strategy is changed from a loser to a winner just by adding more money.
You can start with a lesser amount in the beginning but if you are confident enough then you can take that step but make sure that you have enough experience to not risk it all
I think if the amount is very low, you can go ahead and take a risk but if it is high, it is better to stay away. There are so many reasons not to borrow money and the risk is very high too.