I had a friend who had an engineering degree from a prestigious University. He thought he was smart until he lost it all, and realize his engineering background my be the cause of his losses.
Getting back on line with this thread. There are WAY smarter ways to finance your trading account than cash advances. Not that this way is any smarter, but have you people ever heard of balance transfer? Basically open a credit card at citibank and request a balance transfer made out to you. Basically citibank will mail you a check made out to you. Go cash it and deposit the cash into your trading account. Citibank is ALWAYS offering 0% interest rates are up to a year. You are basically paying 60 bucks a month as a minimum payment and that payment is going directly toward the outstanding balance. Check for yourself.
More great advice! What happens when you lose it? You still have to pay it back, BTW 0% does not last forever if you ever bothered to read the fine print. If you have no Job or Home, you ain't getting more than $2500 "Balance Transfer" as CASH.
If you lose it, you shouldn't be trading. I did this and was EXTREMELY careful with it, being its not my money. Didn't make anything spectacular, but I did better than the 0% I was being charged for the "YEAR". Took it out of the market and paid it back, because looking to buy a condo and don't want that outstanding balance showing on current credit reports. But if you aren't beng careful with money thats not yours. You should consider some serious risk management with your trading.
But you still aren't purchasing anything, you are getting cash. Usually cash advances are a fraction of your credit limit and I'm not sure I've seen a 0% interest offer on a cash advance (but I've never really looked).
I think Bruce Kovner (Market Wizards) did but he is the only one survived and come back to tell his story out of the thousands who sank with the anchor tying both hands.
When you get one of these 0% promotion balance transfer offers they come with BT checks. These checks can be made out to yourself and deposited in your bank account. This is not counted as a cash advance; you are getting interest-free money (for the period of the promotion). BTW I'm not advocating using a BT for trading, just explaining how it can be done.
Traders... I do not condone borrowing money to trade. If one did do this, when would it stop? until he lost? It starts out with good intentions, but when it comes time to balance the books does the greed magically disappear? Why not just trade your edge and be patient. Maintain a stable, financial and mental outlook and follow your principals. Now do not misunderstand me...money is a tool, like a chart or a platform to trade with...but day-to-day living must take place while you are trading and sound and stable emotions are necessary. The big, fast money slips away big and fast, where the slower, consistent growth of wealth is more appreciated. Does Bill Gates blow his whole Wad? or leverage himself out of bounds? Sound Money management and the challenge of maintaining and increasing yield should be occuping your minds, no matter what the bankroll is. This thread will tempt many...hey I am human too and have devised schemes to compound and grow money that is mine or that is not mine...but I do not do it... Stay balanced and level...and bask in the good feeling of not owing anybody any money. This way you can never lie to yourself about your net worth and always know your condition by how much REAL cash you have... Also remember to take your time, you have the rest of your life...The money will arrive, if you have an edge. True talent will be able to find edges throughout their trading career. Michael B.