No problem, and yes if someone was to trade goog then it might be a little more painful. But with someone so underfunded they wouldn't be able to buy many shares anyway. It's the added leverage in futures that would make it possible to burn out much faster. With just 5k you have the ability to buy around 10 contracts which could mount to huge losses much faster than the smaller leverage you're given to buy stocks on margin. I was thinking more along the lines of learning with the SPY or better yet the SSO which would allow them to purchase more shares while trading an index. Granted if you don't have a trading plan then it's death by a thousand cuts rather than a quick sword but it at least gives them time to learn and develop a system.
Wow, the more I look at think or swim the more impressed I am. I think I have found what I was looking for.
I also live in Canada and my balance is less than 25K but as I said I do not know why BMO let me buy 3- 4 times a day. Like today I have to pay $110.00 for commision. They charge me $9.95 commision.
I have TOS for one of my accounts. They are an exceptional overall broker. You won't find better service, and they're dedicated to consistently upgrading their platforms and systems. Hope it goes well for you. I would just encourage you to develop a trading system while you paper trade, because trading without a plan will run your account dry.
By the way you have to do at least 10 trades a month to be able to qualify for the $9.95 offer. Check their sites. It was a good day yesterday and today. I made $450.00 yesterday and $800.00 today. I love daytrading. I am in and then out. If you gonna do this word of advise: Do not be greedy. If I will make $150.00 minimum per transaction, I will sell.
$9.95...thats alot, I was paying $9.95 back in 2005, then I switched to Scottrade and was paying $7.00, even that was toooo much for me. My online broker is charging 0.01 a share up to 500 shares after that its 0.005. 100 shares = $1.00 round trip = $2.00 500 shares = $5.00 round trip = $10.00 1000 shares = $7.50 round trip = $15.00
Are you using all your BP to make these type of trades, what is your avg. amount of shares you trade? 500 1000 1500???