Trading with borrowed money

I think we should only use the money which we can afford to lose because forex is a very risky business and we can never become successful if we have no skills and knowledge.

If you are a beginner then do not ever trade on forex with borrowed money, it is not a easy game buddy! You are risking your time and someone's else money. Better to trade with small amounts and if you don't have money, earn first from other regular sources and then try on it on forex.

Sometimes, when we trade with money that we borrow, we lose some control.

Do not borrow money for high-risk business. You can borrow to invest in real estate, for example, but forex is too risky environment

Master_Z posted:
Do not borrow money for high-risk business. You can borrow to invest in real estate, for example, but forex is too risky environment

Yes, I think so, ideally, in real estate, the price will arise from years to years but borrow money also need to pay an instalment, if fail to pay it will become a new problem in life, if possible to live without loan I think will more comfortable to sleep.

Doing trading by borrowed money means making the risk double. Trading should be done with your idle money. Money that you can afford to lose.

Trading with borrowed money is like putting yourself in more risk zone. And if you have borrowed it from any institution then interests will eat up your gains. So no need to borrow, just trade wisely.

When you go into trading with borrowed money, your first concern should be to preserve the principal amount.

Wise words @michihito. Trading itself comes with risk, if we take loans or borrow money in addition to it, then it becomes a very risky one.

@jonathandaniel Yes absolutely right. Trading is already risky due to high leverage which is also kind of borrowed money given by broker. Trading should be done with idle money.

@Akasuki Yes due to high leverage, forex is a very risky financial market. A person needs good skills, knowledge and experience to make money in forex.

That is why, that you need to have good experience and knowledge, a beginner is working with borrowed money with the wrong grid.

@Faujinn yes a begginer with borrowed money falls in more danger. No one should do this. It would make you lose all the momey.

That is, the conclusion is very simple.
First, go to work in a regular job, if you don't know how, then do an internship and earn your first capital.
Then, use your capital as you need it. You can invest or trade on your own.
But life experience shows that after you have worked for 2 years at work with an average salary, in an office or a builder, or in a bar, it does not matter, you will no longer want to invest in forex.
Life will break you.
And throw you out.

FirstHero posted:
That is, the conclusion is very simple.
First, go to work in a regular job, if you don't know how, then do an internship and earn your first capital.
Then, use your capital as you need it. You can invest or trade on your own.
But life experience shows that after you have worked for 2 years at work with an average salary, in an office or a builder, or in a bar, it does not matter, you will no longer want to invest in forex.
Life will break you.
And throw you out.

That is not right. Working 2 years at a rubbish job will make people want to get our and earn Forex for their freedom

higher leverage, higher risk and low capital investment. Low leverage low risk but high capital investment.

When we rely only on the funds that we have, we take it more seriously and insulate ourselves from certain risks.