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🔽Time stamps:
1:10 What is margin trading?
3:17 Pros of using margin account to day trade
7:30 What is margin maintenance in trading?
12:39 Trading tips for trading on margin
Is margin trading risky? Should beginner day traders trade on margin accounts?
Margin has a bad rep online, people call it gambling and the reason why new traders fail at day trading. But the reality is that MARGIN is merely a tool for day traders to use. It's RISK MANAGEMENT that'll determine whether a trader become profitable or not.
If a trader disregard risk management, he or she can blow up both margin and cash trading accounts! Almost all full time day traders I know use margin trading. All of my day trading broker accounts are margin accounts.
PROS of Using a Margin Account:
1. Leveraged buying power
Trading brokers will give you 3 to 1 or 4 to 1 buying power. Some brokers will even give you 6 to one leveraged buying power. HOWEVER, just because you have the buying power to day trade, does NOT mean you should use all, or even all of capital to day trade!
2. No trade settlement period
3. Margin account gives traders ability to short sell stocks.
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DISCLAIMER: I am not a financial adviser nor a CPA. These videos are for educational and entertainment purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.
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I’d start with cash account if you’re well below 25k and prove yourself you can build up to that. Otherwise, you probably have no business using margin if you’re day trading.
Great video HT
Great information, thank you
Thanks for this video ,I been looking for a video like this forever
I use margin as a backup only for emergencies. Like a credit card.
I’ve started with a small cash account. Each time I profit $50 I add $50 from my bank account. The slow-going-goal (theoretically) gives me time to become a consistently profitable trader before I switch to a margin account (although, somedays it’s very tempting to go ahead and step up; in my paper account I make more short-selling than I do going long). You mentioned one of the cons of a cash account is waiting for the settlements, but I see it as a plus. If I use all of my available funds today then tomorrow I’ll trade virtual paper to keep up my training in real time.
Love this for you
@@Moneywise-1 I really think it helped me build good habits before getting a margin account (which I mostly use for swinging simple options plays).
With the margin account, the trader has to sleep with one eye open – lol
Shouldnt be using margin overnight unless u are using like 10 percent margin or less its just too risky… whereas daytrading u can have tight leash on it with half percent stop
The biggest pro IMO is the ability to use options and short selling over the cash account.
More like not sleep at all lol
LOL. This is interesting information but I wouldn’t do it. Probably a bad advise59 use this for most people.
lol
Margin sounds nice, I just don’t trust myself with that kinda power….
Great power comes with great responsibility.
In Switzerland they give you a leverage of 1:300 on some positions 😉
It’s all part of the systems Trap. Force you to wait 2 days. If we don’t like it then sign up for margin and “gamble” on credit. What could go wrong? SMH
@@ChickenThug55 just was what I was thinking lol
Yes. this is precisely my fear
I just love listening to her talking about stock, great materials. Thank you
Honestly I have listened to many tutorials on Margin Trading on YouTube by others and yours was the best Humble Trader. Your strong point is you keep it to the point, you choose a clear simple perfect example for explanation and of course the best part – your bad jokes 🙂 I really like your tutorials. Thank you.
“Rainbow, sunshine and lambos” love it!
finally somebody explained so clearly!!! understand perfectly, thank you very much
Thank you again for your time and insight… Your charisma is appreciated
Best video explaining the two with pros and cons, thanks !
Thanks Humble. Just turned my account into a margin. Glad I watched this vid before getting started. You rock!!!
I have been trading for 30 years, of course my margin purchasing power is in the millions. Most of the trading I do requires you to have margin purchasing power. Never used more than 50% of my margin . If you cannot write a check for your margin balance when it’s called I would not recommend it especially for beginners.
Can you please answer this question for me. I have over 14,000 in margin balance. Should I sell off shares in my apple account to pay off my margin or should I write a personal check to pay if lt off? I really would like your feedback. Thank you.
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Wow …u have traded for 30 years now…how is it now bro?
I appreciate all of the thought that goes into your videos, as well as the silly humor. Thanks Shay!
are you not afraid to use promising but young services like WOWswap? is marginal trading on dexs becoming even more risky?
I’ve been trading on wowswap for a couple of months now, great reliable platform! 👌
If someone’s country has blocked CEXs, you can trade with leverage on WOWswap for example. Or on any other exchange.
Is there a trading terminal? I used to trade on binance and I’m afraid I can’t figure out the other platform