Hi, I have a good swing trading stratagy and risk management and iam profitable since 2022. The only problem iam facing is the trading capital, I don’t have much. What are the ways to raise the capital?
my fav is loan against fd and lic policy. against fd is best as its interest rate is lowest we can get.
its also my favourite but I recommend never trade with taking any type of loan because …loan is a type of psychological barrier …which crushes our mind and it can make us blindfolded even if you are experienced and pro …for this brokers give leverage …I had many experience in even swing trades …the market comes to sl touches it and small gaps down and later I discovered that it was a big swing trap and it goes straight up…Even if you are a god you cannot manage yourself having triggered with negative emotions …
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correct, loan is bad for trading, it is definitely not for traders who uses everybodies strategies that has probability of both profit and loss, and for naked traders i dont have to say.
but an highly experienced trader can create a position with 100% profit probablity or convert a existing positing to 100% profitable, for such traders loan is big advantage for extra capital.
but keep the loan not more than 10% of existing capital, there is still risk of broker terminal to go offline while in middle of trade that might lead to position ends up in naked.
@hari2210 i woud simply like to highlight these bits again…
As @Joe_Maxpayne rightly pointed out already (am just highlighting it), there is no 100% guarantee. Ever.
Howard Marks on Risk
The human mind yearns for certainty,
and the way it does that is
- by looking at historical events,
- accounting only for what has happened previously,
- and relying on patterns.
But nothing is certain, one has to always be prepared for the unexpected.
I tell my father’s story of the gambler
who one day hears about a race with only one horse in it, so he bet the rent money.
Halfway around the track the horse jumped over the fence and ran away.
~ Howard Marks
Source: Howard Mark’s “Risk Revisited Again” memo.
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The only way, I think, is to find capital from other revenue sources. Trading is a mental game. You must be financially sound to see any losses in your trade. That is, you must be ready to get through any bad situation in a trade to make sure you can make regular profits at the end of the day. The only solution for that is to ensure earnings from another source, and especially as a swing trader, you can comfortably stay in another business or job while keeping your trades profitable over the years.
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