"Every penny you earn is a realization of your knowledge of the world." This is what Warren Buffett said. On the other hand, you can't make money beyond your cognition.
doing business with loans is as risky as buying stocks with loans. But doing business is controllable, the threshold is higher, and a solid foundation is needed. If you know your business like the back of your hand, you will naturally know what you are doing. The threshold of stock trading is relatively low, and it is beyond your control. There are many factors that affect the stock price, and even a negative news stock price will be plunged, which is not something you can recognize.
Moreover, the mentality of using the loan money and using your own money for stock trading can't be the same. Never overestimate your humanity. Once you can't make a profit or even be trapped in the short term, when there is no cash flow of income, you must pay the interest on the loan. Can you remain calm and calm? Can you still judge calmly?
The stock market is a seemingly easy road, but it is actually difficult. Those who do well can enrich Jia's side without saying that they are extremely rich. Those who do badly can only be slaughtered by others in this market. Unfortunately, the latter is the majority of us.
Getting started is easy, which makes many people worry about it. They will enlarge their leverage as soon as they make a little profit, but they don't know that the more profitable they are, the more cautious they should be in using funds and leverage. People explode positions in futures every day, why, you know. The index has soared these days, and I'm only a half-seller, because even if you borrow money, your profit will be enlarged, and your loss will be enlarged at the same time. If you are not careful, your profit will be swallowed up soon, so you must be cautious.
Moreover, as far as loans are concerned, there is a big difference in loan policies between starting a business and going to the stock market. There are many related policies in the country on starting a business loan. As for stock trading, first of all, you should know that banks are not allowed to allow loan funds to flow into the stock market. Loan stock trading is an illegal operation. Once it is discovered, it must be required to collect loans in advance. Who can guarantee that it can get away with it?
Therefore, people who want to borrow money for stock trading should give up this idea as soon as possible. It is terrible to have this idea!
Stock trading is not a simple matter. In this market, you can never get rid of the law of one win, two draws and seven losses. Ordinary people just want to think about professional stock trading to support their families.
loan stocks may not outperform the interest rate of loans, because loan stocks can't bear losses, and losses in the trading process are also common problems. In this case, the psychological pressure can be imagined. Of course, many people feel that they have found the method of stock trading under normal conditions, but the market is changeable now and the appropriate method may not be suitable for the future, especially the short-term market style is not as unified as it was three or five years ago, and you may suffer a nuclear button at every turn, and it is also common to lose 2% every other day.
Although it's a bit negative, after all, it's advice when most people are least heeded. Ordinary people who borrow money and stock market should never think about it. Few people can get out of it. Maybe it's easier to succeed by spending more time and experience in your familiar field!