So i've been excited about learning how to play the stock market and making a little bit of money on it. Not bad if you ask me. I want to learn more and make more without working.
Be careful. You need a minimum of $500 to get started, and then you can only trade slowly. With $2,000 you gain slightly more flexibility. After that the next level is $25,000 when you can actually begin to day-trade. These are just the SEC minimums.
At 2k you can have a margin account which comes with a few privileges. The main thing is that your broker gives you double the buying power via an automatic line of credit. So if you have $6k in your account, you can trade as if you have $12k... for a small amount of interest. :P
Simply don't buy more than $6k, though, and you have no worries about that. One of the other things gained via margin accounts it the ability to more freely buy and sell stocks. While you can't buy five stocks in the morning then sell them all later that same day, you can sell a stock you've owned for less than 3 days a few times a week without getting in trouble.
At $25k you can have a day-trading account, which essentially lets you buy and sell as often as you wish.
All these things, except the line of credit, are governed by the SEC, not your broker. The credit, to a degree, is also governed by the SEC, but they aren't collecting the money.
most of my stocks are holders ive had to get out of one a few days later but that was a fuck up most of the stocks ive had have been for a few weeks. I'm going to be reading more on these books I have now and I know people to ask if i have any questions about anything. But that 25 K or borrowing doesn't sound like something i would do anyway.. well not anytime soon.
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Be careful. Trade in industries that you know.
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whats the 25,000 thing? do you not get charged commission or something? With 2 K I know I trade in options which im not ready for.
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Simply don't buy more than $6k, though, and you have no worries about that. One of the other things gained via margin accounts it the ability to more freely buy and sell stocks. While you can't buy five stocks in the morning then sell them all later that same day, you can sell a stock you've owned for less than 3 days a few times a week without getting in trouble.
At $25k you can have a day-trading account, which essentially lets you buy and sell as often as you wish.
All these things, except the line of credit, are governed by the SEC, not your broker. The credit, to a degree, is also governed by the SEC, but they aren't collecting the money.
Reply
most of my stocks are holders ive had to get out of one a few days later but that was a fuck up most of the stocks ive had have been for a few weeks. I'm going to be reading more on these books I have now and I know people to ask if i have any questions about anything. But that 25 K or borrowing doesn't sound like something i would do anyway.. well not anytime soon.
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