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.
As he is a good trader so he can easily make that much money by himself in a month or couple of months and it will not be a constant pressure on him to make money. But if he takes loan from the bank then he would have to give the bank a collateral of much greater value and if he looses or be unlucky in those trades then he have the risk of getting REKT and this is what I think his reason for not taking a loan for trading.
Also I think the same that taking a loan for trading is just the same as taking a loan for gambling where there is always a high probability of you loosing all your money which is pretty bad situation if that money was borrowed.