A friend of mine just passed by the office. He is a NYC Press Journalist and he remarked on Daytraders. He is doing a story on a daytrader. This "daytrader" has applied for a loan through the bank, and even though he lists himself as a "professional Daytrader" the Bank fails to recognize this as a reputable profession and is refusing the loan. Anyone hear of this? What are your views?
http://www.elitetrader.com/vb/showthread.php?s=&threadid=9390&highlight=CBS There was a thread earlier this week on some of these issues - see attached url.....
Gold_Ric Here are my views. Why are you continually posting that website link? What's your affiliation with that website link? Are you a sponsor at ET? As to your question...I know of 2 daytraders that have not only received personal loans, business loans but one even received a mortgage loan as well. They did list their profession as Day Trader or Futures Trader. How did they accomplish this? They had a business bank account (via their trading) at the bank for many many years...made regular deposits to their business accounts... developed a good relationship with the bank loan officer and their account rep for many years prior to any loan application and they then brought in verifiable (audited) income statements showing their consistent income when they decided they needed a loan. Note: They had no other source of income but only their consistent trading profits and they supported their family with spouses that did not work. Then...when they needed loans approved...it was routine without any hesitation by the bank. Therefore, it is highly possible that there were many other reasons why the particular daytrader you mentioned was denied a loan and has less to do with what he did for a living...because we just don't know the whole story. NihabaAshi