Does "recommended starting capital" mean margined or not?

[skulltrader]

Ironfist Yes to both questions. What ever it goes up you keep minus margin fees and whatever it goes down once you cover your position you will have your balance minus the amount you lost on your trade therefore giving you less capital to trade with now so if you have 30 at 4:1 now you will only have 29 at 4:1 assuming you lost only 1000 in the trade.

And to answer your last question you get margin on equity not just on cash so if you bought $24k worth of a stock and only have $1k left in cash as your example you still get 4:1 margin on the whole $25k (of course as your position gains or loses value so will your margin)

Quote from IronFist:

Yes, that's why I was starting with $30k. I figure if I lose $5k then trading probably isn't for me and I'll just close my account. Plus, I'd like a safety net cuz if I start with $25k and lose $0.01 on the first day, I'd hate to have my account frozen at $24,999.99.



I wasn't planning on getting any margin calls (is that the same as a "house call?")



Seriously? Ick. So you're supposed to start with $100k of your own money and begin with $400k buying power?

Surdo, I don't really want to trade futures.

Ok I have a question about margin:

Say you have a $25k account ($100k margin):

- assuming no comission and you put all $100k into one position and it goes up 1%, you've made $1000. Do you get to keep ALL that $1000?

- assuming no comission and you put all $100k into one position and it goes DOWN 1%, you now owe your broker $1000, right? So your account is now down to $24k.

I'm not going to put all my money into one position like that. I was just using extreme examples to help clarify my question.

Do you get charged interest on intraday margin? What about intraday short positions?

Last question - margin only begins when you excede the amount in your account, right? So if you have $25k, and you buy $24k worth of something, are you then limited to $1k, $4k (your remaining $1k @ 4:1 margin), or $76k (the remaining balance of your $25k margin)?

Thanks.

 

[tradewiz50]

Quote from TruthSeeker247:

Probably the worst advice I've ever heard on here. Don't listen to this guy......you'll wind up regretting it

Yeah and this guy is a fucking moderator here?:eek:

 

[IronFist]

Thank you to the people that gave me serious answers.

 

[Handsome]

Quote from IronFist:

Thank you to the people that gave me serious answers.

This topic I found interesting. thanks for starting it and you did get some serious replies...

I also started a topic as I needed advice to give my elderly aunt and I was getting some serious replies and then suddenly someone attacked both me and my aunt....I have only made a couple of posts here due to I read mostly as I am not very experienced but I am shocked by the hatred of that member here and even more shocked that nothing was done about his posts or even his posting ability.

Makes me wonder about what this place really is to be perfectly honest.

http://www.elitetrader.com/vb/showthread.php?s=&threadid=73259&perpage=6&pagenumber=1

 

[kiwi_trader]

Its a board for entertainment and some serious topics.

It gets a bit rough at times but the quality of the good information here exceeds that of the more civilized boards

If the person you were talking about was Drawdown, you might want to look at his earlier posts when he was banned under the name Coinz. He comes pretty close to insane in that persona. It is possible to get banned

 

[JMowery1987]

Quote from TGregg:

Absolutely margin included. Plus whatever you can borrow against your credit cards. Nothing focuses the mind with laser-like precision like knowing you could lose everything on the next trade! Stress is your friend, the more stress and worry you have, the better your trading will be. Always bet the farm on the next trade to maximize risk, stress and worry. Those three things are the traders best friends.

Part of me wants to applaud the fact that some mods have a sense of humor, but another wants me to say that it didn't have any effect in improving ET whatsoever and somewhat lowers the standard.

We all know mod's have lives as well, maybe one sentence or two for a joke, but to write a whole paragraph, just makes someone look like a bad apple.

Just my thoughts, I don't really care about anything else in this thread, but I would like to mention to the OP, that putting 2k at a firm and day-trading, vs. your 30k on the line doing retail, well, if you are smart, you'll figure out which could be the better option for a new trader.

 

[IronFist]

Quote from JMowery1987:

Just my thoughts, I don't really care about anything else in this thread, but I would like to mention to the OP, that putting 2k at a firm and day-trading, vs. your 30k on the line doing retail, well, if you are smart, you'll figure out which could be the better option for a new trader.

If I trade $2k at a prop firm i'd be out a max of $2k.

My plan with trading $30k of my own would have me out a max of $5k. I know that's a bit more, but still.

 

[zdreg]

Quote from TGregg:

Absolutely margin included. Plus whatever you can borrow against your credit cards. Nothing focuses the mind with laser-like precision like knowing you could lose everything on the next trade! Stress is your friend, the more stress and worry you have, the better your trading will be. Always bet the farm on the next trade to maximize risk, stress and worry. Those three things are the traders best friends.

this moderator was obviously kidding. no harm. no foul.

let's cut him some slack.

 

[IronFist]

I know. I've been on message boards for a long time and I know there's always some people like that.

Besides, he PMed me and told me that I could borrow against his credit cards to fund my account. See? He's a nice guy

 

[kiwi_trader]

Quote from TGregg:

Absolutely margin included. Plus whatever you can borrow against your credit cards. Nothing focuses the mind with laser-like precision like knowing you could lose everything on the next trade! Stress is your friend, the more stress and worry you have, the better your trading will be. Always bet the farm on the next trade to maximize risk, stress and worry. Those three things are the traders best friends.

A lovely post TGregg. Good to see the followup loan offer - who do you employ to collect debts?