Have you ever experienced to borrow money for Forex trading?

[vicjon1995]

Like most people on this thread I also think you should never invest or trade with borrowed money. Being a successful trader and being addicted to borrowing and spending money are mutually exclusive.

Exactly my point.

 

[hk_09]

I would prefer to stop trading for a while, rather than borrow money and trade. A big no for me.

 

[forexking]

Borrowing money is not a great option. Predicting the market is a tough task. So you can’t be sure that you’ll make profit by investing the borrowed money. So it’s always better to trade with your own money.

 

[Jerry_Ken]

Well this is something you should never do. Invest only that much capital which you can afford to lose in forex. Its not certain if you'll be able to make profits from the money you've borrowed in which case you'll be under debt and hence devastated to have take such a decision. Always better to tarde with the funds you have or dont do it at all.

 

[inggo]

"only invest what you can afford to loose" this is a unofficial rule in any investment, and no never borrow just to trade especially if you dont know what you are doing.

 

[HeavenLeighGill]

Not a good idea to borrow, although I’m sure a lot of beginners have done so. Still, it isn’t good to go into debt because you’ll have to dig yourself out of it. Plus, if you do badly at trading, then you’ll have to find another way to pay those people back, or continue borrowing in a cycle and lose more and more. I think a good rule of thumb is to only invest free money that you have…meaning no using money that is meant for bills or to live on, only extra spending money so that you don’t go into debt.

 

[Jotori]

I borrowed money and I lost it all

 

[Ávila]

Everyone addicted to trading does, it is a bad thing

 

[kathleenaustin]

@HeavenLeighGill Very wise, although I think instead of borrowing money from someone else, why not use leverage?!

 

[sunar14]

Do you think newbies borrow money for initial trading?
Is it only newbies or almost all traders who are addicted to it?
How about you? Have you experienced it too?

Your broker makes short-term loan to you when you trade with margin. However, without leverage FX trading makes little sense because of measly returns.

 

[sunar14]

I regularly borrow since I trade with leverage that's why you have to take into account such thing as swaps.

 

[Glossy]

I don't think that's the right idea.
You need to start trading only for your own money.

 

[Jungletrader]

No definitely not and I strongly advise against it as it brings its own negative emotional baggage.
As they say only risk what you can afford to lose

 

[SmartX]

According to me, borrowing money in forex trading is not a good idea, it is always better to use your money because you never know whether you will get profit or loss and risking someone else's money can put you in major risks as well.

 

[no_frame]

According to me, borrowing money in forex trading is not a good idea, it is always better to use your money because you never know whether you will get profit or loss and risking someone else's money can put you in major risks as well.

Agreed!
Trading using borrowed money can cause more trouble than just losing a trade. You not only have the risk of losing money, but you might also go through a hard time in returning the borrowed money. It is always advisable to trade on your own money and trade whatever you can afford to lose.

 

[sharabela]

Do you think newbies borrow money for initial trading?
Is it only newbies or almost all traders who are addicted to it?
How about you? Have you experienced it too?

Trading should never be done on borrowed money. There is a suggestion from experienced traders " you must not invest money in the market that you cannot afford to lose". If we borrow money, we must give it back. If we lose it, then we will be in trouble. Thus, let us never borrow money to trade in the market.

 

[Serenity]

If you want to start trading then save up for it because even if you lose all your money, it won’t impact your life negatively. However, when you borrow money you are obliged to pay it back and losing it can land you in big trouble.

 

[sunar14]

I don't think that's the right idea.
You need to start trading only for your own money.

you can't if you don't have decent capital since returns will be tiny. You have to ensure enough % for your returns that's why you take risk which allows you to expect higher reward.

 

[Lacquer]

No, why would I borrow money for forex trading? If someone is borrowing money, then there is a good chance that the trader has lost his/her own money in it. Otherwise, it doesn’t make sense why a person would borrow money and put it at risk.

 

[Resolve]

you can't if you don't have decent capital since returns will be tiny. You have to ensure enough % for your returns that's why you take risk which allows you to expect higher reward.

We will need to understand the importance of using our own trading funds so that we are safe.