Raising trading capital?

Discussion in 'Professional Trading' started by trendtrader2005, Jul 24, 2005.

  1. Hello

    I have about 50K cash account with Ameritrade, however I would like to raise my trading capital via loans, etc.

    Before I am warned about "stock market risks" please note that yes, I am aware of that. I think 98% of the Elite Trader members are aware of that....

    With that said, what mechanisms exist to raise say 100K to 250K of trading capital, via bank loans, home equity loans, etc

    thanks guys
  2. A home Equity Line of Credit would give you the greatest flexability at the lowest cost (6-10% variable on the portion you use).

    Washington Mutual Bank has some nice programs.
  3. you either have balls of steel ...or you know your stuff
  4. well to be honest I have learned (over the last 5 years or so) how to combine Technical Analysis with Fundamental Analysis, along with overall market analysis, to trade, vis a vis William O'Neil.

    I MISSED lots of stocks in 2003 because I was scared or not completely familiar with chart reading and other tools, but "called them" as good companies

    Examples are RIMM, TASR, AAPL, and some more.

    50/75 day EMA crosses worked on all.

    Basically, once we get a "green light" on a confirmed new Bull Market (March 17, 2003 if using William O'Neil data), if you then screen for 50/75 crosses, and invest in those that are fundamentally strong stocks in strong sectors, typically small-caps, and use the 50/75 to exit (cognizant of the overall market trend), you will make some profits.

    So, basically

    1) Identify overall market status and freshness/staleness of that status
    2) Identify fundamentally sound stocks, typically small-cap, especially those in strong sectors
    3) Buy those stocks and use some form of trend system to exit
    4) Maintain awareness of overall market condition
  5. May I remnd you it is illegal to use borrowed funds for trading equities...Margin accounts is all that is allowed. This is a SEC rule.

    Michael B.
  6. This strategy is way to vague.. I would love to see how it performs in a multi year range bound market.. or a bear market.

    If you use a 50/75 as exit trigger.. stock could be down 30% off highs before it gets triggered... need better risk management.

    This strategy is great for a strong trendy market like 2003-2004.. but that market is over with. We are now entering a range bound market.. especially due to Fed tightetning cycle.
  7. Hamlet


    I have capital available to trade viable systems in a revenue sharing deal with good verifiable backtest results.
  8. Exits are at 50/75 cross. Yes stock could be 30% off highs, you never sell the top in trend following. In a bear market, you would short the worst fundamental stocks in the weakest sectors, based on overall market condition and 50/75 cross.
  9. syrre


    or both.
    i think the most common way to do this except from bank is family and friends, but then again, some people dont want to do business with family. if you know yor stuff well, i dont see any problems with that, as long as they understand the risk involved.
    #10     Jul 24, 2005