Will a bank give you a line of credit to buy stocks?

How old are YOU? You cannot get an unsecured loan for trading stocks by any bank. Go ahead, try it!

Jesus!

 

The shorter the time frame the more it makes sense...to a degree. It will give you a High win rate with the rare massive drawdown. I think averaging can be used on intraday stuff pretty successfully as long as you have a max pain stop that you abide by.

 

Go trade futures or options.

A $20k trading account should suffice.
Because you can get good leverage.

Let it grow to
$40k,
$80k,
$160k
$320k,
$640k,
$1280k etc etc

You don't need to borrow $$$ from the bank or loan sharks.

And if you can't grow your trading account,
it really really really means you should not borrow $$$ from the bank or loan sharks.

 

Did you read my post? I spoke of secured loans. Keyword: collateral.

 

Have you ever applied for an unsecured loan?

I have. The first thing they ask you is what it's for. Some lenders will allow you to choose from a list, and sometimes one of the choices is something like "general purpose." So I will immediately concede that some lenders will take an application without requiring you to explain exactly how you plan to use the money.

But many lenders explicitly prohibit using the money to buy securities. It's in the terms and conditions of the loan.

You always have to specify whether the loan is for personal or business purposes. If you say it is a business loan, then they will require information about the business. And most lenders will not make an unsecured loan if the business is going to be trading.

With a personal loan, you may be able to avoid stating the purpose of the loan. But for many personal loans, the lender has terms and conditions that prohibit using the loan proceeds to buy stocks or other securities.

American Express offers personal loans to existing cardholders if they meet certain criteria. Here are the terms and conditions:

https://www.americanexpress.com/us/...?intlink=us-personalloans-landingpage-tnc-btm

 

No, you said a general loan. That term does not exist in any universe. I win, and you have lost the argument.

Bottom line, no, you cannot get a loan for the purpose of trading stocks. End of line, dude.

 

can you read properly or is your general venom clouding your judgement? If you tell them you are using the money to buy stock it becomes a specific loan and it is an illegal extension of credit.

 

Which is why I spoke of secured loans. Like home equity loans. You can use those loans for anything you like. The loan terms are not linked to the purpose of the loan.

 

Here is what I wrote at first: "Ofcourse they do, as long as long as you put up collateral like your house or so". My use of the term "general" in a follow up post was incorrect and i should have maintained my stance on collateralized loans. The bank does not care what the loan is being used for when its collateralized. All specialty loans are specifically linked to the loan purpose such as a mortgage and can't be used for anything else.

 

Yes, you spoke of secured loans, and I overlooked that. But in the original post, the guy said "I'm not talking about mortgaging my house or anything."

He doesn't want to put his house up as a collateral, as you suggested. The OP is talking about an unsecured loan.