Trading with borrowed money

Trading itself is the most risky business in the world. And when you are taking loan to trade, you are actually multiplying your risk. Trading should be done with idle money. Money that you can afford to lose. Yes you can trade with other's money on profit sharing basis. But for that first you have to prove your consistency in profit making.

It is very risky to borrow money in order to trade; responsibility is lost and the risk of losses increases.

It very truly said, but forex trading is practicing economic knowledge and emotions, with smart money management you can earn profit for your self and your lender also but it is not a baby game ,

I know some gut who borrowed about 30k $
and after a few month he got about 50K
do you think he stopped and bring money back? NO
what a unique person

It is good, especially for small traders. But it also exposes risk. So, use it carefully.

Yes, that's right but I think if I can handle trading knowledge properly then trading is possible with any money. But first I have to acquire knowledge and develop skills.

You certainly CANNOT take the risk of borrowing money and then trading with it. Its a disastrous mistake. Trading itself involves a very high risk of losing your capital so why would you want to loose borrowed capital and then pay interest on top of it?

borrowing money to trade is not at all a good idea. one should borrow money only if there is a surety of money returning. But as forex is risky one needs to be sure before investing or trading

Isn't using leverage the same as borrowing money?

I totally agree with what you wrote here.

I totally agree with what you wrote here. Trading is very risky and in my opinion, it should only be done with the help of professionals. I personally contact https://www.yhdistalaina.com/lainojen-yhdistaminen-danske-bank/ whenever I have to trade and they help me go through this process as safe as possible. I also think that trading with loaned money is a very dumb and risky thing to do because it can cause a lot of harm to the person that does this.

It is not a good idea to borrow money for trading. Trading is the riskiest business in the world. Borrowed money makes it worst. Trading should be done with idle money.

UweMoench posted:
It is not a good idea to borrow money for trading. Trading is the riskiest business in the world. Borrowed money makes it worst. Trading should be done with idle money.

You are absolutely right buddy!
When you lose your own money, you can’t lose more than what you have. But when you lose borrowed money, you can lose more than what you have.

If you can make money grows, the more money you have (from what ever source) the better.

Forex is risky only because your style is trade too risky.

I agree that if your trade is risky then better don't borrow money to trade.

eddieteddie posted:

UweMoench posted:
It is not a good idea to borrow money for trading. Trading is the riskiest business in the world. Borrowed money makes it worst. Trading should be done with idle money.

You are absolutely right buddy!
When you lose your own money, you can’t lose more than what you have. But when you lose borrowed money, you can lose more than what you have.

and then you get trapped in a vicious debt trap... you take more debt to trade thinking you will be able to payoff your previously debt and earn profit for future.... which ineed never happens you are left with debt... huge debt and nothing to pay it. .

We are all trading with borrowed money when we use leverage.

LemonFeather posted:
We are all trading with borrowed money when we use leverage.

Exactly!

Know how to trade is the key.

AurelieFrancis posted:
I would suggest using leverage instead of borrowing money because leverage is like borrowing money. Trading is a risky business, and borrowing money can make it worst.

It is very difficult to sustain investment with borrowed money. Trading is very risky so I don't think it is possible to trade with borrowed money.

Leverage is any trader's friend. True traders know that! It's a matter of proper risk management.