What I see about bitcoin is its gonna bounce between 100-110k to 80-90k for a long time (at least until Trump takes over). I have an option to take a 2.8k $ loan from a bank and pay 3.4k $ in 8 months. (I'm gonna start paying it after 2 months so you may assume its 6 months). Should I get that loan and make 3x - 5x margin trades on Bitcoin with this strategy? I really appreciate your help. Take Care.
Securing a loan for trading is first of all a very bad investment. From my personal experience, 2020 when I was introduce to trading, after seeing all the opportunity in trading after 3 months of learning I loaned money from my elder brother and promise to pay back is 3 months time. I loss all the money. And I was not able to pay back. I have to look for another means to pay back the money. Considering the emotional and psychological aspects of trading it is not advisable to take a loan for trading.
from experience, borrowing money to trade puts you under pressure that is enough to push you into losses. regardless of how certain you feel the trade can go, if the amount you are using is not something you can afford to lose, it is not advisable to make that kind of gamble on it. if getting profit from trades was easily like that, people would have been cashing out really big from trading. getting a loan for trading is just like taking a lone to gamble, the risk out pass the potential gain.
Loan is not child's play, it's a burden, especially when you are not channelling it to a business or a viable investment that has almost guaranteed income. For this, it shouldn't be seen of anyone securing a loan to trade, it's a disaster. One of the golden rules of trading even preached against it, "don't trade with the money you can't afford to lose." I am sure the borrower can't afford to lose that money, why do that when it will even cause more pressure on you?