Forex Trading with Borrowed Money

Trading with Borrowed Money is a recipe for disaster.

A famous phrase attributed to Ben Franklin but was first said by Polonius in Act-I, Scene-III of William Shakespeare’s play, Hamlet. The character Polonius counsels his son Laertes before he embarks on his visit to Paris. He says, “Neither a borrower nor a lender be; / For loan oft loses both itself and friend.”

When trading Forex most of my students simply are poorly advised about their suitability for  trading currency or CFD’s

For reasons unclear to me the words “buying on margin” and “leveraged purchase”do not connect to the reality they are borrowing money to trade.

I give  you two simple rules.

• Do not trade with any funds but speculative capital.
• Do not trade with borrowed money.

Here is why I give that advice

• Borrowed money is often scared or timid money Scared money always loses.
• A broker’s loan is always subject to call without notice.
• Most traders do not understand Forex  leverage . Do not do that which you do not understand .

I expect that few will heed this advice. Fewer will be willing to acquire the skills that allow you to ignore this advice.

We got started with borrowed capital. Only after two long years of constant demo trading  did we have a suitable validated historical data string that could be shown to  speculators who made the bet on me and my skills.

Never trade with borrowed money until you are ready. And then you can evaluate this kind of offer.