No, I do not prefer to borrow any money for trading. But yes have used an optimum leverage for making trades.
Have you ever experienced to borrow money for Forex trading?
- Thread starter SweetPrincess
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Better use leverage than taking loans. At least leverage will put your own money at risk and there are margin-calls and stop-out levels preventing unnecessary losses. But when you trade taking loans then you’ll have to pay the loan money and the interest rate levied on that bank loan.
NO. That is not recommended. Forex trading is already a risky market. With a debt in hand, you will put yourself under a higher degree of psychological stress. Even if it’s your parents, don’t trade with borrowed money.
Nope! Never did this. A friend of mine did borrow money for trading, but it didn’t work out. If you borrow money for trading, it doubles the risk and psychological pressure on the trader. Trade with your money, otherwise don’t. Avoid debts at all costs.
I borrowed every penny I started with in September 2020. I am now a 6 figure trader and also a forex coach with my own academy. I would say it depends on your personality and discipline level. I feel borrowing the money was an advantage to my success as I knew I could not afford to fail. If I didn't have the pressure of someone I need to pay back, I don't think I would have been as dedicated as I was. Also helped me never to blow an account in those early days. Then again I am a psychogist by profression so I know that had an impact as that is the biggest struggle I face with my students. Teaching the skill I can do to a mastery level in a week, it is training their mindset I find takes a bit longer to master.
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I used high leverage when I started but as the time went on I gradually reduced as my deposit grew. It is important to think a plan who you will reduce leverage, because trading with high leverage is unsustainable.
Lending money for any purpose is not good. I think that if you do not have enough money for anything, it is not for you at the moment.
I think taking a loan to start trading can be risky. It's not just newbies, even some experienced traders do it, but it's risky for everyone. It's better to trade with money you're okay with losing. I've seen it happen, but I always say it's safer to use your own money, not borrow.
that doesn make sense at all cause if U wanna test things out and learn U can use a demo acc. if it's about actual live tradin there are some brokers which U can start with jus $1 and as Ur acc grows U can then switch to a better one.
Never borrow money for FX trading, especially if you are newbie. There is a high probability that you will blow up your first account.
So true! Borrowing money for trading is risky, especially for beginners. The chances of losing that money are high, and it’s important to trade with capital you can afford to lose.
Yes, in fact, I am constantly borrowing from my broker when I use leverage. As for personal capital, I would not recommend going into debt to obtain it, because the feeling that you will owe money if you trade at a loss will create unnecessary tension, increasing the chances of failure.
Like most people on this thread, I believe it is very risky to trade with borrowed money. It would be great if you make a profit, you could return the borrowed money while keeping some for yourself. But if you make a loss, it would be another hassle. I would recommend saving some money and then trade on it.
Yes, if I lose it causes unnecessary worry. Also, it feels like a responsibility in case of borrowing so always avoid having it but totally your call!
Yeah.. you are right at some point..
But even without the risky trade, trader will fail at some point If the borrowed interest rate is higher than the earning money from market, So that will destroy the psychology. and the account disaster will start to happen... If we live in a country which doesn't charge any interest for borrowed money that country people can trade with borrowed money and there is higher probability of winning.
Otherwise If a trader trading with borrowed money.. The Psychology section will go down drastically and a time will come to slap himself and asking himself "Why you used borrowed money for trading".
Hint: I've slapped my self lots of times.
