Online Trading – Day Trading Rules
So you are performing online trading and trade stocks and/or options and call yourself a day trader. Do you know the requirements of day trading? In our user’s group, many times this question comes up and what happens if I accidentally (or on purpose) violate one of these rules?High Rate of Return With Minimized Risks – The Only Way to Survive a Fraud Plagued Market
Whenever I want to get a high rate of return (read: always) with a minimum amount of risk I inevitably look for a small, but 99% sure thing gain in the market, then I borrow as much money as I possibly can to increase the amount of purchasing power I have (I use leverage) to buy as many units of that small gain transaction as possible. Perhaps an example will help.Margin Trading Accounts – Investors Buying on the Margin to Amp Up Gains
Margin trading accounts are used by savvy investors to turn small allocations of capital into enormous profits by using leverage to turn a small amount of purchasing power into a substantially larger purchase. There are a number of ways this type of account is used, but do not let the examples here close your mind to other types of trades using margin trading accounts.
What is a margin account? I get that question a lot from intermediate traders who want to amplify their stock market gains but have not really figured out which direction to go. All investors want better returns with reduced risk, but not all investors have the financial background to know what all of the alternatives are, let alone know which type of leveraged investment will suit them best.Margin Stock Regulation – Understanding Leverage and the Importance of Protecting Financial Markets
Margin stock regulation is extremely important to the efficient and consistent functioning of financial markets. Many rules have been developed over the years to protect financial institutions and investors from themselves and each other as people try to make money in financial markets. One of the most dangerous areas for the financial system as a whole is leveraged trading, hence the importance of margin stock regulation. Although it is not specifically covered in this article, unregulated trading of this type had a great deal to do with the collapse of financial markets in 1929.