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Just got burned by first January transfer window. All my loan players were recalled to teams and it took me a while to figure out that I won't get them back. All my wins were result of loaned players. Now, the part-timers are trying to keep pace, but falling down, just like my place in the league table.
Alas, is this what you've folks have been talking about as "the joys of LLM"?
Personally I don't bring in loan players. I would rather make my crap players slight less crap by playing them than bring in good loan players who will give the team a false and short term boost. But that is just me I know there are many Llama out there that do loan players.
As this is your first season ever of FM, just go out and play the game, make mistakes and learn from them.
Don't get too caught up or frustated with losing, it could many seasons to learn the game, as in real life, before your able to put together a good side. I'm 2 1/2 seasons in, and there has on occasions been signs of progress, and this, is very satisfying.
Who cares if you come last or get sacked, just move on to another club, you will have learnt something along the way to take with you.
I'm with Hogie re loanees. It's way too easy to get fairly good players on loan, so I just don't take them, unless there's a severe injury crisis. Plus, they will prevent other players from getting their fair share of first-team football and hence prevent their development.
That said, it is very annoying to see other teams bring in EPL players that rip the league apart.
When I'm in the lower leagues, I do sometimes take in players on loan, but only ones who are playing for local clubs. Playing as Weston-super-Mare, they aren't going to loan somebody in from up North are they.
Just have to be sensible, and use Google Earth if you're not familiar with where the team is geographically compared to others.
I've found youth to be the way to go with LLM. I've just completed my 1st season in control of the mighty Daggers. While money was tight, I managed to bring in 5 players, all under 21, from championship/premiership teams.
Obviously, all were higher league rejects, but they were all still much better than your average conference player. Probably League 1 or 2 standard footballers.
A lot of the youth players from the top teams aren't good enough for such a high level of football, but can find a good home at a LL club.
LLM makes my head hurt... 
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