In stock market forums, you will often notice that there are people asking for credit advice to choose to quickly have capital to invest in the stock market.
We give you the 5 good reasons that assure you that you NEVER have to borrow to invest in the market ...
1. The money lent, it is necessary to return it later :
At one time or another, you have to give it back. Every month, whatever your results, you will have to pay your monthly payments.
If you can not pay them, then it's useless to make a credit ?
And if you can pay them, why not feed an account before, every month, to have capital without borrowing ?
2. A credit is expensive
Never forget that you will have to pay interest. And depending on the type of loan, interest can quickly increase.
Let's recap: you do not have money to invest in the stock market, and you have to pay your credit every month and on top of that you give a lot of extra money. So in the end, you lose money.
3. You borrow to invest because you are a beginner :
Never would an experienced trader use a loan to invest, if only for the first two reasons. The goal to put in the head is to earn money, not to lose before initially.
Having to repay a credit will cause you pressure that will always bother you. You will take more risks to earn more, faster, and be certain: you will lose.
4. Credit will not finance itself :
For some investments (example: real estate), a loan can be a good solution. With calculations it is possible to know the return to the year and to make sure that the credit is financed alone, or almost.
In the stock market, this is not possible: even with regular income, it is impossible to predict the return you can get.
If you make a performance calculation you will need, you can never be sure of reaching it.
So it's a bad solution to tackle the problem.
5. You will certainly be in a hurry to earn
The quality of patience is fundamental in trading.
If you are not patient enough to save the little capital you have (which is yours and for which you do not have to pay any interest), you will not be patient enough to think about your investments.
Do you really want to start trading with debts ? Stress ? And pay for months a loan that you can lose certainly very quickly ? This is not the best way !
So, be logical, and instead look for the right way to increase your capital, certainly more slowly, but more surely, and without paying anything to your bank.
And you ? Have you ever had the idea of borrowing to invest in the stock market ?