Profession trader – one of the most high-risk in itself. No less stupid than adding stress to yourself. He already accompanies the trader at any stage of his activity. Therefore, in this article, I may be overly harsh and tough, I warn you right away.
The iron rule of a professional trader , especially for beginners, is as follows – In trading, I use only the money that I can afford to lose.
And now the question – can you afford to lose borrowed money? Right? Did you think well? I hope your answer is no. After all, not a single person in his right mind would borrow money for something that would not lead to a visible result.
At this point one could finish the article. But there is always someone who needs killer arguments to make the right decision about trading with credit money.
Here they are:
- A large amount of debt puts pressure on the psyche . This will end up with the fact that you will often retreat from your own rules of trading, succumb to emotions, take revenge for revenge in trying to save a deposit and nevertheless lose it. Your decisions will not be weighted. You will have to repay the debt regularly. Because of this, you will try to make deals more often, even if there are no good entry points, which threatens a large number of losing trades. Do you need it?
- With credit money, you risk doubly trading. When a novice trader loses his own money – this is one thing, when borrowed – they must be returned to the owner anyway. Well, if this is the person who lent you the amount without interest. And if the bank? Thus, the amount of your losses doubles.
- Payment of interest on the loan decently increases the amount of useless expenses. No comments.
- Loans in foreign currency, for trading it, increase your risks by several times – after all, a sudden appreciation of the rate increases the amount of your debt in rubles astronomically.
- If you are a gambling person , then you shouldn’t go to the exchange at all. Do something else.
- The scope of trading is too specific – do not even expect that you repay the loan quickly if you decide on it. You probably have other financial obligations to yourself, family, etc.
- Regardless of the experience in trade, there is always the risk to drain the entire deposit. And this does not always mean that the problem is in you.
I hope that these arguments are enough to convince you to trade exclusively with your own money. If you want to verify these theses on your own experience, then it is your right. But then the consequences also fall on you.