Is this ok to take loan and invest for long term in equity

Stocks
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Is this ok to take loan and invest for long term in equity. How to apply for loan to invest in stock market?

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Yes, why not.
If you are ready to pay the interest rate on Loan amount.
The person who is giving you Loan is more smarter than you. Becasue he know, he will get interest on the loan amount monthly or annual. And He also know that there are more possibility that your returns will not be enough to payback the loan amount.
So, what he will do? He will take the what ever you have kept for safety deposit. Example- House, Land, Shop, Gold, Agriculture land etc etc

There are many big companies who are not able to pay their loans back in this same market in which you will Invest for long term than how will you pay back your loan amount with Interest.

Its a win win situation for the person who is giving Loan.

Trust me if someone will ask me loan for this type of Investment I’ll happily give him Good amount of Loan.
Because my returns will be greater by Just giving this loan amount.

Any expert in Loans and Interest rate will guide you more better.

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Please don’t do it.

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this is what I can say

LOAN = BORROWING = SUICIDE
OPTION TRADING = MARGIN TRADING = ATTEMPT TO SUICIDE

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The bottom line is you should make more than your loan interest+inflation to be profitable.

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When market is in uptrend then it looks attractive to buyers but what when market will start it’s downtrend ?
In 2008 many people suffered due to losses … they lost everything
Maintain stock market for secondary income

Simple Investment rule
" Never keep all eggs in single basket"
“Never test the depth of river with both the feet”

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Thanks everyone for your previous advices

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The person who can able to maintain the Financial Discipline - able to pay EMI / Interest, should always think this source favourably for creation of good assets.
In Mar 2016, who invested in Avanti Feed by taking loan, one should assess his decision by today’s appreciation of this scrip.

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@123csn Sir, You are an Investor since 1985.
I am born in 1994.
You have a very good experience of Investment and your answer is also like a professional Investor.
But Sir, the problem with Today’s Generation Trader Like me We are not able to find stock like you experience Investor.
We new generation Traders wants quick money our Targets are not realistic. We lack Experience and How the Market work. We know nothing as compared to experience Investors like you.

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@Lets_Invest May be you could pay attention to the thread header before posting views next time.

Is this ok to take loan and invest for long term in equity.

@jesuslovesusjohn Warren Buffet had done something similar to increase his net-worth multifold, but you could call it loan which was on a low or negative interest rate. You can read how he did it in this Quora Post.

Risk is quite blindly taken always negative outcome only, whereas as there are two facets of it

  1. Threat (the negative risk).
  2. Opportunity (the positive risk).

There are different ways to handle these and this is the crux of the game. You can delve deep into the topic of Risk Management for ideas on how to get paid for taking the risks.

Good Luck.

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Hey @saiography I am very much Aware about the Thread.
I never read a post of this much experience Investor on tradingqna.com So, I shared my view With him. That’s all.

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First thing, I don’t believe on short cut. In short, be a Investor instead of trader, with a basic Principle, I will wait, but not loose my money.
Keep reading on daily basis, keep updated yourself with latest available information. Make the use of versity on ZERODHA, to know how to assess the stock strength.

Thanks and Regards. All the best.

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Thank you Sir @123csn.

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Normal perception is that we should not borrow money for investing and trading. Another normal perception is when a person gets a good paying job his life is settled and we should not take unnecessary risks in life like starting a business or say start Stock Trading. But here we are risking our capital every day taking leverage by using BO orders to buy Options and Fut which are a leveraged product by itself !

It all comes to your own risk management and smart trading and investing decision if you can use that borrowed money to earn 20% monthly by trading or 40-50% annually by investing the interest you will be liable to pay will be meager. IF AND ONLY IF you have the skills and have successfully generated such kind of returns then you can think of trading and investing on borrowed money.

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I have taken 2 million INR @3.25 %P.A. initial days were stressful but now i have become habitual of it. I would say if you can control ur emotions and ready to take safe trades only which are very rare you should give it a thought. But its your own call my thoughts may not necessarily be correct. Moreover i take 2 out of 10 trade that i comes in front of me.

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Never ever do this mistake in your life. I have personally felt the consequences of this act. If you read books of great investors, you will get this great piece of advise.

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I normally advise against taking any kind of loan. Its like a swamp, you can never get out of it. But it also depends upon the company in which you want to invest in. If there is maximum chance of profit, then you can consider about borrowing some loan.

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If proper discipline is followed its ok to trade on borrowed money. But 90% peolple dont follow discipline and loose money.
What is your investment amount you are planning?

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right said. For such kind of stocks you can contact me 8940000824