DislikedI am not ready for a live acct and need at least a year or two more of experience.
I currently have no money for trading and am going to college next year and most of my income will probably go towards tuition costs, so saving is not possible. The only way i think is to register an LLC in my name (as Jim said a few posts back) and apply for a business loan and use it for trading.
($40,000 loan for 5 years, 15% int)Ignored
...this is a terrible idea. 15% pa? Jesus, are you hitting up a loan shark?
If you arent ready for real trading, why on earth would you want to trade on borrowed money? At a huge rate?
Presumably, as a college student that cant save, you arent going to have any income to service a huge loan like that. Which will FORCE you to take trades.
New trader + no experience + loan pressure + big account + no outside income = guaranteed disaster.
Dislikedif i can keep it up for 5 years, and get an average of 4% a month during that time then I'll have a nice sized acct for trading(after i repay the loan) .Ignored
DislikedBut dont forget that i will personaly be protected, due to the LLC. (Worst case scenario happens i can declare bankrupcy since i am still young and dont have anything of value,only my cedit score gets affected,lol)Ignored
Also, a bankruptcy isnt something you should undertake lightly. It will hang around you forever - it is a permanent record, above and beyond your credit score. It affects everything - any future loans you get will have an added risk premium (up to a couple hundred basis points sometimes), you wont get credit as easily, employers look at your credit history, etc.
In as nice a way as possible, please dont do this. Seriously. Go to college, learn, get a job. Trade a micro account into a mini account into a full account.
If you really must, and seriously think you can compound 4% a month, start with a thousand bucks. $1k @ 4% per month (unrealistic, but whatever) is $10k in 5 years. Plus, you will be an amazing trader at the end if you arent broke, and will be ready for a big account.
And, at worst, you will end up out a thousand dollars, not $40k and wont screw your life up.
I really, really hope you put some more thought into this.
When you have to shoot, shoot. Dont talk.