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. I want the opinion of you members of this forum,
whether to use capital from bank loans unsecured and risky if used trading by traders who have good skills? even though in my opinion
safe as long as we can make a profit and smoothly repay loan installments to the bank.
I have to say that your friend is really a wise person. He would enjoy smaller profits rather than taking big risk and that is what would never make him face excess loss. I went across a number of people who have similar thought of taking financial loan from banks and utilizing that amount in trading to make profits but have you ever thought what would happen if you face loss with that financial loan and now you do not even have money to pay the EMI of the loans?
This would keep on multiplying your actual loan amount and you would need to pay hefty charges for maintaining your credit line. You might even end up being bankrupt if you do not have proper management and that is the reason why I would prefer each and everyone to stay away from this kind of thinking.
Never be greedy. Your greed is making you ask this.