Taking max student loans and dumping it on margin into the stock market.

[Deleted member 275]

-I never worked a day in my life
-Had 0 savings

I started taking max student loans in the Netherlands whilst living minimally. I have been doing this for 7 years now and have put all of this into the stock market on 3.2x margin with my broker. The interest on the student loans are 0% here, and on the margin loan it is only 1.25%. Meaning over the entire investment I am paying about 1% a year on interest. I will be able to keep doing this for another 2 years until I have ran out of student loans to receive.

In the Netherlands you are not taxed at all on assets you own that are bought with borrowed money; According to the government I don't own anything, because I have just as much liabilities as assets.

What this means is that I currently own 216.000 dollars in stock, which should net a historical return of 7%/year, minus the 1% margin cost, netting me 6% = 13.000 dollars/year of free un-taxed income per year. This will increase as I continue lending and I re-invest all of the gains I am making.

Note: If a 2008 happens I am effectively getting completely wiped out due to my margin. (30% loss in stock market value will wipe my portfolio to 0). But for me personally that's a risk I am willing to take since I currently hate my life and this could be a way out.

I know margin costs and student loan situations are different per country so this may not be applicable, but for dutchcels this is a reasonable option tbh.

 

[turkproducer]

216000
dollars?? jfl. good luck, i thought it was clear that economic unrest is near though?

 

[Deleted member 1774]

high risk high reward. good luck

 

[prgfromnl]

The only reason why I would take out student loan in netherlands is because you need to pay it back within 35 years. I wouldn't use it to trade but rather use it on small surgeries.

But I'm too high inhib to take out student loan rn

 

[Deleted member 275]

216000
dollars?? jfl. good luck, i thought it was clear that economic unrest is near though?

Yes. Its 195k euro something. People are saying the next economic crisis is around the corner for 5 years now so it isn't really clear tbh. I will slowly start de-leveraging over the next 5 years. As long as it doesn't happen before 2025 I should be safe.

The only reason why I would take out student loan in netherlands is because you need to pay it back within 35 years. I wouldn't use it to trade but rather use it on small surgeries.

But I'm too high inhib to take out student loan rn

I told myself I would only use the student loans to make more money and not actually spend it on anything. But honestly if surgery could make you ascend because you have 1 or 2 big failo's then it's worth it imo.

 

[turkproducer]

Yes. Its 195k euro something. People are saying the next economic crisis is around the corner for 5 years now so it isn't really clear tbh. I will slowly start de-leveraging over the next 5 years. As long as it doesn't happen before 2025 I should be safe.



I told myself I would only use the student loans to make more money and not actually spend it on anything. But honestly if surgery could make you ascend because you have 1 or 2 big failo's then it's worth it imo.

What would you recommend a way for me making money) I am 17 and have around £50 invested into BTC and other crypto currency (JFL, it used to be £130)

I want to invest and live a stress free life

 

[Deleted member 275]

What would you recommend a way for me making money) I am 17 and have around £50 invested into BTC and other crypto currency (JFL, it used to be £130)

I want to invest and live a stress free life

Need to focus on obtaining skills that are valued and well-paid in our current economy so that you have money to invest.

There's no easy way out tbh. I am taking huge risks here that can back-fire hard and I should be looking to get some kind of job aswell in the near-term.

 

[Tony]

enjoyable read

 

[KrissKross]

Low inhib as fuck tbh, mirin. What happens if it goes bad? You are only losing the governments money right? Not your own.

 

[wellthatsucks]

So while you keep reinvesting, how much are effectively taking out for yourself?

 

[Deleted member 275]

Low inhib as fuck tbh, mirin. What happens if it goes bad? You are only losing the governments money right? Not your own.

Worst case scenario: stock market goes down 30% and my portofolio gets wiped. At this point I have no money at all except a few thousand I could set aside I suppose, but ~70k student loan debt with the government.

Say this happens tomorrow: Nothing changes at all in my personal life directly. I have another 2 years of student loaning to do so I would just live exactly like I do now and just keep putting new money into the stock market.

When I start working they allow you to make minimum wage without taking any of your money away for the debt you got with the government. After that it's a percentage, like say 1/3rd of every net euro you make above minimum wage the gov will take away to repay loans. That's not a great situation, but not terrible tbh.

Say you immigrate to a low-wage country you could live a decent life without ever getting above that minimum dutch wage level so you don't ever repay it in your life.
Say I stay here in the Netherlands I could still live a lower-middle class life even with the debt. There's many people that have student loan debt like this here because they party hard for 10 years for example. Instead of that I lived like shit, but gambled the money away instead.

I see a worst case scenario as manageable in any case.

So while you keep reinvesting, how much are effectively taking out for yourself?

Using it all atm to sustain my NEET lifestyle. Hoping to finish my studies slowly, 2 years (taking 9 years for a 3 year degree lol) from now so when student loans run out I could get some decent job hopefully. Not ideal ofcourse.

 

[wellthatsucks]

Wait how much does a year in uni cost in the Netherlands?

And tf, how can you just take a loan like that without them checking where it goes?

 

[KrissKross]

Worst case scenario: stock market goes down 30% and my portofolio gets wiped. At this point I have no money at all except a few thousand I could set aside I suppose, but ~70k student loan debt with the government.

Say this happens tomorrow: Nothing changes at all in my personal life directly. I have another 2 years of student loaning to do so I would just live exactly like I do now and just keep putting new money into the stock market.

When I start working they allow you to make minimum wage without taking any of your money away for the debt you got with the government. After that it's a percentage, like say 1/3rd of every net euro you make above minimum wage the gov will take away to repay loans. That's not a great situation, but not terrible tbh.

Say you immigrate to a low-wage country you could live a decent life without ever getting above that minimum dutch wage level so you don't ever repay it in your life.
Say I stay here in the Netherlands I could still live a lower-middle class life even with the debt. There's many people that have student loan debt like this here because they party hard for 10 years for example. Instead of that I lived like shit, but gambled the money away instead.

I see a worst case scenario as manageable in any case.

Using it all atm to sustain my NEET lifestyle. Hoping to finish my studies slowly, 2 years (taking 9 years for a 3 year degree lol) from now so when student loans run out I could get some decent job hopefully. Not ideal ofcourse.

Why arent we all doing this tbh, ultimate NEET mode activated

 

[Deleted member 275]

Wait how much does a year in uni cost in the Netherlands?

And tf, how can you just take a loan like that without them checking where it goes?

year of uni is 2k. I can borrow 12k/year so saving 10k year. And yeah they really don't care how you use it.

 

[wellthatsucks]

year of uni is 2k. I can borrow 12k/year so saving 10k year. And yeah they really don't care how you use it.

What da fuck

Brb i really hope my country offers at least half that

 

[Deleted member 275]

What da fuck

Brb i really hope my country offers at least half that

I cried really hard when I lost 30k dollars in a week time or so. But I have gone completely numb to it now after 2 years of serious investing and half a dozen of sleepless days. I just treat it like numbers on a website now, like a videogame lol. Ofcourse I want to win, but when I am losing I can just close the webpage and act like nothing happend lmao.

 

[wellthatsucks]

I cried really hard when I lost 30k dollars in a week time or so. But I have gone completely numb to it now after 2 years of serious investing and half a dozen of sleepless days. I just treat it like numbers on a website now, like a videogame lol. Ofcourse I want to win, but when I am losing I can just close the webpage and act like nothing happend lmao.

Lol how much experience did you have prior to taking the loans?

I need money asap to fix major failos. Minimum wage is just a joke so I need make high risk high reward plays

On my commute to uni I'm reading on technical analysis for day trading and I'm thinking of taking a 20k eur loan or something lmao. And that's like the minimum you need right? And then I'll probably be losing that within a month so I have no idea what to do

I might have to resort to refunding Amazon and shit

 

[Deleted member 275]

Lol how much experience did you have prior to taking the loans?

I need money asap to fix major failos. Minimum wage is just a joke so I need make high risk high reward plays

On my commute to uni I'm reading on technical analysis for day trading and I'm thinking of taking a 20k eur loan or something lmao. And that's like the minimum you need right? And then I'll probably be losing that within a month so I have no idea what to do

I might have to resort to refunding Amazon and shit

0 experience, i started with safe diversified ETF investing without margin and now I am completely leveraged and investing in random meme stocks tbh. Very risky.

I don't day-trade though. I buy/sell new stock positions like once every 2 months. I dont do financial derivatives / options since those require a lot of experience. Simple stock-trading isn't too hard, but you will not make big gains on the short term.

 

[wellthatsucks]

0 experience, i started with safe diversified ETF investing without margin and now I am completely leveraged and investing in random meme stocks tbh. Very risky.

I don't day-trade though. I buy/sell new stock positions like once every 2 months. I dont do financial derivatives / options since those require a lot of experience. Simple stock-trading isn't too hard, but you will not make big gains on the short term.

Jfl, you completely winged it from taking student loans to investing it

Gj though

 

[Deleted member 275]

There's currently a bug in the US trading app called 'robinhood'.

Esentially with a small deposit (2k) they allow you to borrow an infinite amount of money. The guy in the post above used the infinite margin money trick with a 4k deposit to get a 1million stock position in Ford and another 400k in Tesla.

So basically:
1)Have 2k in money or get a loan somewhere else for 2k.
2)Deposit it into robinhood.
3)Abuse the infinite margin money trick to get multiple millions of buying power.
4)Buy millions worth of options/stock.
5)Profit.

It's ridiculous that robinhood currently allows this and it will most likely be patched soon. You will go bankrupt if it backfires on you though as you will have a huge debt with this company.



This guy who discovered the bug did it a few days ago and managed to turn a 2k deposit in 60k of debt (unlucky). If his trade went the other way, he could've turned his 2k into ~380k. High Risk high reward.

If I lived in the USA and I had slightly less to lose, I might've considered doing this with a couple dozen million dollar from robinhood and tried to become a millionaire

 

[wellthatsucks]

There's currently a bug in the US trading app called 'robinhood'.

Esentially with a small deposit (2k) they allow you to borrow an infinite amount of money. The guy in the post above used the infinite margin money trick with a 4k deposit to get a 1million stock position in Ford and another 400k in Tesla.

So basically:
1)Have 2k in money or get a loan somewhere else for 2k.
2)Deposit it into robinhood.
3)Abuse the infinite margin money trick to get multiple millions of buying power.
4)Buy millions worth of options/stock.
5)Profit.

It's ridiculous that robinhood currently allows this and it will most likely be patched soon. You will go bankrupt if it backfires on you though as you will have a huge debt with this company.



This guy who discovered the bug did it a few days ago and managed to turn a 2k deposit in 60k of debt (unlucky). If his trade went the other way, he could've turned his 2k into ~380k. High Risk high reward.

If I lived in the USA and I had slightly less to lose, I might've considered doing this with a couple dozen million dollar from robinhood and tried to become a millionaire

Dude how long do you reckon this will get patched??

 

[Deleted member 275]

Dude how long do you reckon this will get patched??

Within a week. This brokerage firm is breaking way too many federal laws by lending millions of dollars to people they barely know.

 

[wellthatsucks]

Within a week. This brokerage firm is breaking way too many federal laws by lending millions of dollars to people they barely know.

Shiiit I need a ssn

 

[Deleted member 275]

Shiiit I need a ssn

Robinhood users discover glitch to trade with unlimited borrowed money

Robinhood users discovered a glitch that allowed them to trade with unlimited borrowed money. CNBC's Kate Rooney joins "Closing Bell" to discuss.

www.cnbc.com

big media just caught on, won't take long before it's fixed now. real life infinite money cheatcode

 

[Deleted member 1680]

I cried really hard when I lost 30k dollars in a week time or so. But I have gone completely numb to it now after 2 years of serious investing and half a dozen of sleepless days. I just treat it like numbers on a website now, like a videogame lol. Ofcourse I want to win, but when I am losing I can just close the webpage and act like nothing happend lmao.

Idk why but I found this funny

 

[Deleted member 275]

Idk why but I found this funny

It's sane because whatever happens on the webpage that is my brokerage account, it has never had any effect on my life. I win hard? I don't withdraw any of the money and my life stays the same. I lose hard? I don't need the money anyways so it doesn't affect me.

My brokerage account is just a videogame at this point. I had some goals at some point like withdrawing the first 20k of pure profit I make and buying a sportscar, but I see it as betabux moneywaste cope and dont really care anymore. I want to reach 7 digits on this videogame and see from there.

Trump pls no bad tweets and make trade deal with china. Kthx.

 

[wellthatsucks]

Robinhood users discover glitch to trade with unlimited borrowed money

Robinhood users discovered a glitch that allowed them to trade with unlimited borrowed money. CNBC's Kate Rooney joins "Closing Bell" to discuss.

www.cnbc.com

big media just caught on, won't take long before it's fixed now. real life infinite money cheatcode

Are u fucking kiddIng meeeee

Btw how do you trade/where can I trade NASDAQ in Serbia?

 

[CopeAndRope]

There's currently a bug in the US trading app called 'robinhood'.

Esentially with a small deposit (2k) they allow you to borrow an infinite amount of money. The guy in the post above used the infinite margin money trick with a 4k deposit to get a 1million stock position in Ford and another 400k in Tesla.

So basically:
1)Have 2k in money or get a loan somewhere else for 2k.
2)Deposit it into robinhood.
3)Abuse the infinite margin money trick to get multiple millions of buying power.
4)Buy millions worth of options/stock.
5)Profit.

It's ridiculous that robinhood currently allows this and it will most likely be patched soon. You will go bankrupt if it backfires on you though as you will have a huge debt with this company.



This guy who discovered the bug did it a few days ago and managed to turn a 2k deposit in 60k of debt (unlucky). If his trade went the other way, he could've turned his 2k into ~380k. High Risk high reward.

If I lived in the USA and I had slightly less to lose, I might've considered doing this with a couple dozen million dollar from robinhood and tried to become a millionaire

Holy shiiiieettt. This is an opportunity in a lifetime, fucking hell, I wish I knew about trading. 99% of the terms I read in that reddit post are absolutely foreign to me.

 

[Alexanderr]

Interesting.. But I don’t think I’d be able to do this though, I’m too high inhib.

 

[Deleted member 71]

Mogs me brutally.

 

[Rasputin]

All non US users can have one up to 3 robinhood accounts. If you are involved in the market you will know what I'm talking about

 

[Deleted member 5258]

Ik heb je hulp nodig man augustus begint mijn opleiding en wil het zelfde doen als jou is het nog mogelijk?

 

[johncruz12345]

lol

 

[Bitch]

Sorry to tell you this, but there is another economic crisis around the corner... Many banks stopped giving out car leasings and loans for 2 months in my country now. You probably didn’t expect Covid to fuck up the economy back in November of 2019.

 

[Seth Walsh]

How did this work out?

 

[Vitruvian]

Taking max loans and gambling because money = everything. No stop watching those retard youtubers brainwash u. Just learn and live life

 

[Deleted member 6217]

nice im also from nl and lend 500 a month to pay for surgeries

 

[GigaMogger]