Has Day Trading Changed?

mignonette said:
Huh?? We are talking about $500 day trading margin here and why they make sense from a trader perspective. . Do you work for a broker?
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I can see how extreme day trading margin works well for those that are responsible. All I'm saying is that as the introducing broker next in line for losses, I would not be interested in general in offering higher than 4x span margin for day traders. I've been in the business long enough to be able to balance profits from commission dollars with risk of loss. It would also make a difference to me if it is an LLC or a personal account with assets in other places.

I'm not judging you for wanting more.
 
d08 said:
Doesn't make a difference? the broker will go after your funds and even if you don't pay up, you destroy your credit rating, can never open an account with that broker and you'll probably end up in some blacklist.
The word "piker" hasn't been used for a while but you're it.
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There was a congressional investigation into the leverage practice of brokers and prop firms...I gave the details of the investigation in another thread discussion here in a discussion to Q3D.

What they discover wasn't pretty.

Basically, small traders with access to these types of leverage were "preyed upon". The words "preyed upon" is specifically used in the congressional report and now going forward in years to the present time...nothing has changed. In fact, it has worsen now that we're in 2016.

So yeah, the new alias moniker of the former psychotic ET member does not know what he's talking about. Yeah, you got it right. He's a piker and his goal is to come here and disagree just to stir the pot...he did say at this forum several times he's just here for entertainment purposes.

Therefore, you can say the sky "can" be blue on some days and he'll respond I want to see proof or links. :D
 
rmorse said:
I can see how extreme day trading margin works well for those that are responsible. All I'm saying is that as the introducing broker next in line for losses, I would not be interested in general in offering higher than 4x span margin for day traders. I've been in the business long enough to be able to balance profits from commission dollars with risk of loss. It would also make a difference to me if it is an LLC or a personal account with assets in other places.

I'm not judging you for wanting more.
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It's my belief (opinion) that traders that are responsible and consistently profitable...they'll most likely not abuse margin, leverage or abuse anything involving their risk management.

My question is this...these same types of leverage or margins offer to professional trading firms or is it only offered to the non professions that are typically known as "retail traders" ?

I also notice an increase in number of "new traders" taking out ridiculous personal loans in the area of 20 - 30% and then opening trading accounts with brokers offering these $500 per contract...

Does the broker check the credit background of their clients to see if they are suitable for being able to manage such types of leverage and margins ?

Thus, do you guys run the social numbers of your clients and take a look at their credit rating to determine who gets what when it comes to leverage and margins. I'm not really talking about you in specific but was just curious about the business of leverage and its correlation of a person's actual credit merit.

Lastly, greatly appreciate your sponsorship here at ET and your informative replies. You have often posted info I didn't know anything about and I've found it to be very useful...thank you.
 
wrbtrader said:
It's my belief (opinion) that traders that are responsible and consistently profitable...they'll most likely not abuse margin, leverage or abuse anything involving their risk management.

My question is this...these same types of leverage or margins offer to professional trading firms or is it only offered to the non professions that are typically known as "retail traders" ?

I also notice an increase in number of "new traders" taking out ridiculous personal loans in the area of 20 - 30% and then opening trading accounts with brokers offering these $500 per contract...

Does the broker check the credit background of their clients to see if they are suitable for being able to manage such types of leverage and margins ?

Thus, do you guys run the social numbers of your clients and take a look at their credit rating to determine who gets what when it comes to leverage and margins. I'm not really talking about you in specific but was just curious about the business of leverage and its correlation of a person's actual credit merit.

Lastly, greatly appreciate your sponsorship here at ET and your informative replies. You have often posted info I didn't know anything about and I've found it to be very useful...thank you.
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We do background checks on all new clients but not credit checks. If you open a futures account, the FCM does a credit check. If you open s PM securities account, the clearing broker does a credit check. With a Reg-t margin account, they do not.

Bob
 
To profit these days, you need to scalp pretty much and you need young gamer reflexes and be able to think real quick to.

Markets are getting to changeable, I think day trading is the only way to make consistent profits.

I'm teaching myself to scalp currently cause of above.
 
Turveyd said:
To profit these days, you need to scalp pretty much and you need young gamer reflexes and be able to think real quick to.

Markets are getting to changeable, I think day trading is the only way to make consistent profits.

I'm teaching myself to scalp currently cause of above.
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It is an interesting topic for debate. At times the market operates in a somewhat "predictive state" even on larger time frames...At other times, the market loses some structure and then becomes fodder for CB interventions...
 
der_kommissar said:
It is an interesting topic for debate. At times the market operates in a somewhat "predictive state" even on larger time frames...At other times, the market loses some structure and then becomes fodder for CB interventions...
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Scalping can be predictable enough to make 28 trades, with only 3 losers so far over the last week.

Losers are on average 3xs average profit value, but room for improvement :)
 
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