Using Margin

[killer2021]

The basic thing you need to know is that margin = risk.

Anything leveraged will add risk which leads us to the next investment principle.

more risk = more reward if the trade is gaining

and vice versa

leverage is only for the absolute expert trader.

[LongArm]

Originally Posted by Pivot Point

If you have an account with 10K, you can do:

Day Trades
You can buy up to 40K worth of stocks for that day. You have to sell them by the closing bell.

You actually need a minimum of $25k in your account to do that.

[KayAnn246]

Originally Posted by bbnetworking

you should ask this question with the brokerage provider.

I would like PERSONAL experiences. I use margin and know how it works. I wanted other people's view on why and when they use it. I've actually used it for about 2 years now. Thanks everyone for posting your experience. I'm trying to get a look if I'm on track with using it.

[jlawrence01]

Originally Posted by Singlelady10

I would like PERSONAL experiences. I use margin and know how it works. I wanted other people's view on why and when they use it. I've actually used it for about 2 years now. Thanks everyone for posting your experience. I'm trying to get a look if I'm on track with using it.

Everyone is rah-rah about using margin, especially during three or four years where there has been major gains in the markets. The problem is that eventually, the market starts to tank and your losses are magnified.

[BigCityDreamer]

Originally Posted by Singlelady10

I would like PERSONAL experiences. I use margin and know how it works. I wanted other people's view on why and when they use it. I've actually used it for about 2 years now. Thanks everyone for posting your experience. I'm trying to get a look if I'm on track with using it.

Anybody can make money during a market rally (like the last few years). It's when the market starts turning south that people start losing their hard-earned money. If you're on margin, you can lose it twice as fast.

History keeps repeating itself over and over again.

[Pivot Point]

Originally Posted by BigCityDreamer

It's when the market starts turning south that people start losing their hard-earned money. If you're on margin, you can lose it twice as fast.

You can short on margin, too, and make money.