Using Margin for day trading

Discussion in 'Risk Management' started by DuyLe, Nov 2, 2007.

  1. bennie83

    bennie83

    good thread
     
    #11     Jun 7, 2009
  2. Who do you use for your forex broker if you don't mind me asking?

    Geoff
     
    #12     Jun 9, 2009
  3. I sent you PM Geoff
     
    #13     Jun 9, 2009
  4. JAP

    JAP

    Excellent advice.
     
    #14     Jul 11, 2009
  5. Reealjrd

    Reealjrd


    A trader must use 75% margin of total deposited money. i think so your broker doesn't provide much margin, because many forex broker provide 20 times margin. consult with your broker other wise go for another.
     
    #15     Jul 14, 2009
  6. Learning is based on doing what is required to build your mind.

    If you are able consider that, relatively speaking, you have all the time in the world.

    Any trader can have any life style he prefers. Becoming a trader requires one single kind of effort which only takes some time.

    It is similar to learning to read or do arithematic. It is very kindred to becoming accomplished in music.

    All the above tells you quite simply that margin is not on the table.

    Where you to learn music, you would focus on one instrument at first. When you became accomplished you might branch out a little.

    Beginning to trade is best done with position trading stocks. This is a simple repetitive task that uses several streams of capital (no margin) and in its simplest form involves a trading plan and a business plan. As in all learning, the beginnings are simple and a foundation is laid.

    Position trading is mostly automated and takes little daily time except for the fact that you put in time to compress the learning curve. The learning curve depends upon you more than anything.

    Consult your business plan to see when you first double your applied capital. At that time remove the applied capital and use it for another purpose. From this time onward you only trade with profits.

    As you become accomplished in position trading stocks you will find out that all other instuments can be traded to same way but on different and usually faster fractals. This knowledge tells you that you do not have to trade full time to have any lifestyle you desire.

    Look at you business plan and see when the time comes where you do not have to trade full time anymore. It will be a time when you position trade quite seriously and you make most of your needed life style budget money from a short period each morning trading futures.

    At this point, you may decide to trade more each day, since the market is still offering. You may also decide to position trade larger amounts of capital and even trade both commodities and stocks at their repsective intraday and position trading limiting capacities. It is a nice experience to have for the record.

    If you do decide to keep money, then you will have to learn a third trading method that handles unlimited capital: Stock Sector Rotation.

    Those who keep money and show their wealth often attract the attention of others who need their capital managed. If you cotton to that, then you need to use margin for yourself and for them.

    Lets look at what you will do instead. You probably with put more than the smallest amount of money into the market as you learn. You may not focus on learning but, instead, focus on making money. You may not create the 100 plus page business plan or pick up a ready made business plan from the web. You may not create a trading plan for position trading nor a trading plan for futures commodities trading intraday. You may not get a mentor who could give you all these things either.

    A lot of noobies feel they need to invent. You may invent too.

    As you go along you may spend time collecting pieces here or there. It is the usual thing for thocse who do not have a learning plan. You may skip creating or finding a learning plan.

    The one very important thing about learning to trade is the "Answer Sheet" for the questions that come up. There is also the minor issue of the questions themselves. Some questions do not forward the asker but only take the asker on a detour.

    Here in ET everyone builds an autobiography. Some are given biographies by those who do not even know them. So I've started your biography as you see above. There are many forks in your path ahead.

    Scan a page from your daily journal and post it.
     
    #16     Jul 14, 2009
  7. dirkd

    dirkd

    i totally agree with youngone, take 75k put it in a money market and trade with the 25K, and only trade in lots of 100 for stocks and 1 lots with commodities till you are profitable for at least 3 months then you can raise your contracts or shares by a factor of 1 for every week that you do good. then reset at the end of month to 3 lots or 300 shares till you get in at least 12 months of trading in full time.
     
    #17     Jul 15, 2009
  8. If you are serious, and want to really make a living, go pro, take your series 7 and save 75k for your first year's living expenses and trade your portfolio with real leverage instead of losing your money trading retail.
     
    #18     Jul 15, 2009
  9. some leverege 50 to 1?
     
    #19     Jul 16, 2009
  10. #20     Jul 16, 2009