Took out a loan to transition to full-time trading. 24 years old.

ffsear

Experienced member
1,923 351
#91
We get it, failed trader, compulsive gambler doesn't want anyone else to be a winning trader.

How can you fail on Dax is beyond me.
zzzzzzzzzzz :sleep: More of the same. Your just embarrassing yourself now.

Your going on ignore. I'll let the others deal with you.
 

ffsear

Experienced member
1,923 351
#97
Even when you take the APR out the equation, its still a bad idea. IF you owe someone 25k and you lose it. Once paid back you have effectively lost 50K of your money.
 

new_trader

Legendary member
6,175 1,254
#98
Even when you take the APR out the equation, its still a bad idea. IF you owe someone 25k and you lose it. Once paid back you have effectively lost 50K of your money.
I'm a little slow today so I can't quite figure out your maths. Can you provide a worked example?
 

ffsear

Experienced member
1,923 351
I'm a little slow today so I can't quite figure out your maths. Can you provide a worked example?
Say you have no money. You borrow 25,000 to trade with and lose it. Your back to Zero and still owe 25,000.

Losses 25,000
Debt 25,000 and no way of generating the repayments, which now have to come from your salary, which wasn't part of the plan. Your effectively taking a pay cut.

Equity swing - 50,000.
 

new_trader

Legendary member
6,175 1,254
Still confused

Say you have no money. You borrow 25,000 to trade with and lose it. Your back to Zero and still owe 25,000.

Losses 25,000
Debt 25,000 and no way of generating the repayments, which now have to come from your salary, which wasn't part of the plan. Your effectively taking a pay cut.

Equity swing - 50,000.
Person A: 25,000
Person B: 0

Person A lends Person B £25,000 [N.B: This isn't Central Banking chicanery, the £25,000 came from real savings not from thin air]

Person A: 0
Person B: 25,000

Person B looses...no...losses...umm...blows the lot trading

Person A: 0
Person B: 0

Person B must now spend the next 12 months saving to repay the £25,000 Person A saved. The books are balanced again!

Person A: 25,000
Person B: 0

How much did Person A make and or lose in this process? (Disregarding opportunity cost)
 

NickBk

Experienced member
1,915 498
Say you have no money. You borrow 25,000 to trade with and lose it. Your back to Zero and still owe 25,000.

Losses 25,000
Debt 25,000 and no way of generating the repayments, which now have to come from your salary, which wasn't part of the plan. Your effectively taking a pay cut.

Equity swing - 50,000.
Do I really need to say more.

I can guess why trading might have been tricky for you.

How about putting on socks, are you ok with that?
 

ffsear

Experienced member
1,923 351
Your forgetting the 3rd man

Person A: 25,000
Person B: 0
Broker 0

Person A lends Person B £25,000 [N.B: This isn't Central Banking chicanery, the £25,000 came from real savings not from thin air]

Person A: 0
Person B: 25,000
Broker: 0

Person B looses...no...losses...umm...blows the lot trading

Person A: 0
Person B: 0
Broker: 25,0000

Person B must now spend the next 12 months saving to repay the £25,000 Person A saved. The books are balanced again!

Person A: 25,000
Person B: 0
Broker: 25,000

Where's the extra 25k come from?
 

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