I have a friend who has quite great trading skills, almost every trade he manages to make a profit. But I see he always uses capital under $ 500.If in my opinion he should use a large capital of at least $ 5,000 to get greater profit. I suggest to him to borrow from the bank as trading capital, but he refused with the reason too risky and insecure
Your buddy does everything right
And anybody in your place should refrain from recommending such things. If he follows your advice through and fails, losing the borrowed funds while still having to pay the debt, you will be to blame, and rightfully so. Apart from that, trading with one's own money is not the same as with the borrowed funds (read, someone else's money), while trading with 500 dollars is not the same as trading with 10x as much
Yes. It's a very risky thing if you trade with your borrowed capital than using your own savings. No one knows what will happen in the future even how capable and skilled you are, you are still prone to losing. So it would be better to trade only what you can afford to lose than trading a big capital which if you lose it all, you will still suffer paying for it.