1. It is impossible to enter the market easily, and it is prone to ups and downs;
2. It is easy to cause the wrong operation behavior of buying and selling that should not be bought;
When borrowing money for stock trading, investors only see one aspect of the increase in income and ignore the risk changes in the market. Therefore, when the market situation is bad, buying stocks may not necessarily go up, and may even fall. This will inevitably increase the psychological burden of investors;
Borrowing money for stock trading may cause a fatal blow to family finances, making family members bear debts like them;
5. Contrary to rational investment operation, it encourages gambling mentality and easily leads to a vicious circle.
I. Violation of regulations China's regulatory authorities have clearly stipulated that loan funds cannot be used in production, operation and investment areas that are explicitly prohibited. Banks generally require borrowers to provide proof before or after lending. Although many people are lucky enough to get loans with fictitious materials and then use them for stock trading, banks may not be able to find out, but now many businesses have been networked and may be found out inadvertently. The bank will require the borrower to pay off the debt immediately, and will also charge liquidated damages according to the contract.
Second, whenever you lose all your money, stock trading is a high-risk investment. If you can't make money, once you are flat or lose money, you will not only bear the loss of stocks, but the annual interest rate of loans will basically exceed 15%. Including the time cost, the final expected rate of return may be very low, and it is very likely that everything will be lost. Therefore, it is a bad idea to buy stocks with loans, which may not get additional expected returns, and may easily lead to loans overdue, and eventually leave a bad record on credit reporting.
What will happen if the bank finds out? Most loan agreements will clearly state that if the account is illegally used or improperly used in violation of regulatory provisions, the loan amount will be cancelled immediately, and it will be regarded as all due by stages. All principal and interest/handling fees must be paid off immediately, and the bank will blacklist you, making it difficult to apply for credit business again.
First of all, you should understand that stock trading is not gambling, and it is not a place where you can make money quickly. If you want to make money quickly, don't get close to stocks. What is the situation of stock trading? Stock trading itself is a kind of financial management. The so-called financial management is a high-yield project that you don't want to put in the bank and want to take out. This is called financial management. There are many kinds of financial management, such as banks, funds, insurance and stocks! Stock is the most profitable one, but it takes a long time. If you borrow money to buy stocks, what if you lose your next life? I think you know better than me! I won't say much, especially reminding that stocks are speculated with spare money. There is a saying in the stock market called novice luck. A novice who has just entered the stock market is ignorant and bold, but he can make money and earn a lot. But this kind of profit is not the embodiment of trading ability, but the matching of the market. But the stock market is changeable, and it is impossible for the market to cooperate at any time. Once the market is bad, you can earn 20 thousand a week and lose 20 thousand a week. In fact, I can say for sure that it is not feasible to borrow money for stock trading.