I may break a trading rule of mine

Discussion in 'Trading' started by pumpanddumper, Jan 22, 2008.

  1. That is to trade on margin or borrowed money. But opportunities that present themselves this week come along once every decade. 1987, 1998 (asian contagion) 2001(9-11), etc...

    Yes, I have been blood thirsty to make some quick day trades on panic days like this. Been trading striclty ETF's of late and finding my happy place. I do hold some bagholding positions in some shit investments I made still. Using the rest of my trading capital for quick day trades.

    Okay, I am comfortbale making 5-15 min. trades and penny flipping on 1/8th-1/16th, sometimes 1/4 moves on 500 and 1000 share block trades on the ETF's. Hey, a $100 here, $500 there adds up. (yeah, I know some of you make on average 5k a day...lol)

    So the question is, utilize the buying power or not or continue out of the cash trading?

    More importantly, what is the vig or interest I am paying on the Day Trade BP?
  2. You're risking a lot to make a little. You're better off maintaining your current position size and hoping for increased volatility to increase your gains instead of leverage. You have to give your trades more room to move around, otherwise you'll panic too easily and be quickly stopped out.
  3. The times I give my trades to move around and get greedy is when I get burned. I'm much more comfortable taking my target moves and taking profits when they present themselves on very short term trades(like 15-20 min.)
  4. I disagree very strongly that the vig on your buying power is more important when considering upping your size on a day like today. I would rate the vig as the last thing you would want to worry about if you're strapping on more size today.

  5. Your right, I was just curious what the interest is on the borrowed funds.

    There will be some brainless quick trades to make regardless than your typical trading day.
  6. I just maxed out all my cc's via convenience check (wire actually), will be very patient to deploy. Guys at home, please don't try this unless you've done it a few times already in the past lol.

    There was a max on surcharge so it came out to 4.99 for life of loan, not bad.
  7. illiquid, you're a bit of a different case than pump. :)

    I was basing my comments on his recent thread 'I Give Up, I Quit'. If he's at that point in his trading, I feel it would be a mistake to max out his leverage today.

    No offense, pump, just the way I see it. You're one of the very few guy on here who admitted to losing money.
  8. Margin interest should be a non factor for quick trades. Also, I think today will be weak all day so if you buy, I would buy near the close, not the open.
  9. If that's the case, then I'd agree completely. Will become very tempting in next few days to just say "to hell with it" and just hold a losing position til they need to carry you out.

  10. I know, hell last year was a disaster. Stupid stocks I played...Yeah, I'm back on track though with the ETF trading. Chipping away, slow and steady....

    I know, I'm not saying today is the day. Lots of nervous energy swirling around. But there will be a once in a blue moon trade to be made where I will probably grow a pair of balls.

    I can proudly admit to having the best trading month of my life.

    As a trader, this week will be no excuse to lose money long or short. Extra volatility =extra money. If you can't make money this week, you should pack it in IMHO.
    #10     Jan 22, 2008