He was not a profitable trader prior to taking out the personal loans. Simply, out of the gate it didn't make sense to take out loans. Therefore, pretend compounding only further the illusion many have if they take out personal loans to fund a losing trader. Reality, he didn't make it. Compounding not needed. wrbtrader
It is true, for most (95%) trader who is a loser eventually. In case there is TAX and COMMISSION, 95% is a loser in most countries.
That $11,000 loan at 26% interest is dumb. I think with $9,000 you can trade and make a living. I do not know how good a trader you are and if adhere to strict risk management on your trades. So, probably, to be safe, I would suggest you keep your job. Trade part time not as a day trader but, a swing trader. Also, learn to trade options directionally buying calls and puts. Options give you leverage, limits your losses to the cost of the premium and allows you to get outsized returns relative to the small amounts of capitals you risk. That said, options have a fixed time or expiration and time decay eats your options premiums when your trade goes against you when the stock goes down, assuming you have a call option. It is important to cut your losses and keep them small. Your gains have to be far larger than your losses to offset the times you lose on your trades!
No risk management and that is why you need it to minimize the chance of blowing your account. Suggested is never risk more than 2% of your capital in every trade. He took way more risk, swung for the fences and missed enough to cause those huge losses! I suspect he also, did not have a trading journal. How can you review your mistakes to correct it if you have no records?
Happy 2019. Hopefully a profitable 2019! Oh man, I have so many changes in my life but the bottom-line is the same: I'm going to get rich trading stocks or die trying. Going to start trading live again starting next Monday, January 14th,2019. I will also post a daily short summary of what had happened. This time, I'm going to limit my responses to people giving me feedback but will be reading all(most?) the comments. Please tune in and see how my account does in 2019 Happy New Year everybody.
Seems like a very negative expected value bet to me. 'Every battle is won before it is even fought' - Sun Tzu
I was up more than $300 in beginning. Trading okay. Than lost all of it. Failed to see loss of strength. Stubborn. LOL. 1 day of live trading and I'm done already because the minimum needed to trade 1 crude oil futures increased from $2900 to $3280 and I ended up at like $3180. GG. Will be back in february.