If you have to ask you probably don't know what you're doing. For God's sake, we had two or three folks that day traded without knowing which lots they were selling.
Who said that? Being risk averse is good (I don't trade on margin either). All I meant was, if you have to ask on blind you probably don't know what you're doing and shouldn't trade on margin
Have to disagree with that logic. I do know what I'm doing and spend quite a bit of time researching moves, not doing mindless ape shit. However, what I need perspective on is the risk vs. reward ratio of margin investment, which I currently do not do.
NEVER risk more than you can afford to lose. Margin is like crack, you can't do just 'a little', and it'll destroy your account in the end. Successful traders usually tap 2-20% of their account per trade. Plenty of room for failure while "staying in business". Even with years of experience most can't surpass 50/50 win/loss. The key is limiting risk and quickly cutting losses. Margin does the opposite.
I use a margin account but rarely use margin. I used to use margin when my account size was tiny (learning to trade) and yoloing all in + margin was still ok because I could repay it in full.
That being said, anyone here using portfolio margin?
I would do portfolio margin unless you can get a good rate. Interactive brokers has good rates but they will close your positions without warning. If you have enough capital like 500k you can get TD to lower your rate a lot. I have looked into it but unless you are able to actively manage you can end up like Melvin and GME really fast. You have to constantly hedge because one really bad day can wipe you out.
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That being said, anyone here using portfolio margin?