Im new and have a question

Discussion in 'Retail Brokers' started by takeover1, Dec 24, 2003.

  1. You can still have a margin account, it's just at 2:1 and limited daytrades.
     
    #11     Dec 24, 2003
  2. takeover1

    takeover1

    2:1??
     
    #12     Dec 25, 2003
  3. Yes you would be fine. You can trade with the amount of money that you wire to your brokerage.

    Trading on a cash basis means if you wire $5000 to your account, you can buy $5000 worth of stock. Trading on margin means that if you wire $5000 to your account, you can buy $10,000 worth of stock. This is 2:1 leverage. For daytraders, they trade with 4:1 leverage.

    It's good that you're educating yourself before opening an account. You sound pretty green so keep asking questions until you feel comfortable before jumping into daytrading. On a side note, only 10% of daytraders consistently make money. If you decide to try out daytrading, realize you're jumping into the deep end and swimming with the sharks. You're competing against people who have 10+ years of experience and your goal is to outsmart them. Whatever your financial situation is, make sure you can afford to lose whatever you put into a day trading account whether it be $5000 or $25,000. I totally encourage you to give it a try when you're ready. <read my tagline> cuz you never know until you try.

    DNAJ65000
     
    #13     Dec 25, 2003
  4. takeover1

    takeover1


    thanks for clearing that up , i really appreciate it.
     
    #14     Dec 25, 2003