When trading stocks, do you use a cash account or a margin account? I'm using a cash account and I'm wondering if I should switch to a margin account or not, but I want to hear other's personal opinions and experiences with it
if you can't make it was a cash account you sure as fuck will get liquidated with margin. i know 0 people who have used margin successfully long term. i know many who have rage quit and ended up in the wagie cagie from it.
>>61018372I'm doing well with my cash account now, but the thought of owing money to someone else is what keeps me from doing it
>>61018353I bought a very undervalued mid tier stick with margin and made a lot of fucking money.Using margin(on very good stocks)Is the only way to really make money
Nigger do paper trading for a year first
>>61018353if you're asking a question like that, just do spot. leverage introduces a whole nother level of the casino horse fucking you and stealing your money. you aren't ready for it, clearly. at least with spot, if you are patient, you will eventually dig yourself out of a hole and into profit, especially in the boomer market vs crypto. with leverage, you can lose it all, and because of that, they have an incentive to shake you off. if you still want to try, have fun, but make sure to strictly limit your slot machine budget, because you will most severely likely lose it
if you must, go for isolated margin instead of cross margin, that way you can only lose what you gamble, and it won't eat into your dry powder
>>61018353Depends what kind of trading you want to do. Short term day trading is likely going to need margin for serious gains. But you need to prove you can stay green first. Also the pattern day trade rule just changed from 25k minimum to 2k, so its a good time to use margin... but again, don't do it until you are ready. >t. Still practicing on my margin account with 1-3 stonks at a time, so basically paper trading.
(OP, on my home PC now)So to clarify, I'm sitting at 22.9k cash and I've been casually trading for 3 years now. I've made a total of 13k profit (withdrew 11.5k) with a starting balance of 20k. I want to start taking daytrading a bit more seriously but was unsure if I should make the change or just stick with cash like I have been. If there's some sort of advantage I'm missing out on that I would have with a margin account then I'd be interested in trying it, but if the general consensus is the risk isn't worth the reward right now then that's fine too. I have no problems sticking with my current setup.I've also only ever bought low and sold high. I've never experimented with shorting stocks. I'd like to learn one day but maybe I'm not ready for that yet.
>>61019061Day trading is a zero sum game. You will most likely lose money in the long run or barely match index type returns. When you buy a share from someone, ask yourself 'why did this person sell to me, what do they know that I don't?'
>>61019061Max out your margin on snowline goldThank me later when they get bought out
>>61019061Like others said. I wouldn't do it until you can prove you are green. I day trade and I know its extremely hard. If you need it to short stuff then yes, but never actually use it as leverage. This is where "discipline" they talk about comes in. I dont care if you see an A+ setup with news and everything behind it. Dont over leverage. If YOU dont feel you are ready, then its a simple answer.
Margin is way safer than options for amplifying your gainsYou just need to find solid stocks
>>61018353Margin is good for *investing*, not trading. Margin gives you access to the equity of your assets, so those assets should be stable, long term holdings.Margin has two uses: boosting your buying power, and allowing you to never miss dip-buying opportunities, as your assets become your dry powder. If you use margin conservatively, i.e. keeping it at 20% max at any time and always putting in more money than interest charges, it can be relatively safe. What you do with that margin is going to be the bigger factor.
>>61019061>So to clarify, I'm sitting at 22.9k cash and I've been casually trading for 3 years now. I've made a total of 13k profit (withdrew 11.5k) with a starting balance of 20k.Keep in mind that if you started trading somewhere around 2022 then you´ve been in a permabull retard environment.
>>61020419This, believe it or not. It's been a pretty good couple of years for retail traders. Explains why theres 57 thousand crypto exchanges now. Just waiting for someone to do the number. 22k with 13k over 3 years is only just doing better than sitting in something like SPY.
>>61020419yea everyone is a genius in a bull marketjust this year 2 of my acquaintances have tried to gone "full time". One idiot got a funded account and lost it in 3 months.the funny thing is that they never listen to me, or the same warnings from anons ITT. If they luck out in their first trades they consider themselves geniuses. These niggers think they can predict the future, vs institutions who throw $billions at trying to predict the futurereal leverage trading isn't about being right in the moment. Thats how it's marketed to morons though. it's just about borrowing some money to have a larger position lol. the only certainty is that there is volatility, and thats what you can base a profitable strategy on
consider this, OP:you only ever buy low and sell highBy your own admittance, you are a permabull. a bullmarket genius as described above. Do you also admit you cannot accurately predict the future? (100% of humans can't)from your post I deduce that you consider shorting stocks as 'something to learn'...dude it's literally just clicking the other button. You're probably dunning kruger maxxed right now,, thinking you "learned" how to go long, and now it's time to "learn" the other thing. (Thats precisely how the moron I mentioned just lost his funded account)Theres nothing to learn. The only thing to learn is that you have had easymode market as anon mentioned
in reality youre probably doing this and congratulating yourself for it
either way, yes you can use leverage. It's actually a pretty good idea if you stay below 2 or 3x (the lower, the better). besides trolling your bullish bias, the problem I identify is that you have only $22kI would not feel comfortable leverage trading with more than 1-5% of my nw, so, that's $220. with a pittance like $220, humans are inclined to take too much risk because you want +$10 or +$20 per trade, not +$2.However, if you make 1% every day (impossible btw), well, just calculate it. That part of your portfolio can outperform the rest.Doing it with $200 is a good way to get your toes wet. If youre a permabull you'll have a lot less stress and a lot more hair leftover by just buying and holding.
