A Trade A Day

New traders should not use margin. It is a great tool, but it compounds your mistakes. In the beginning if you can agree that your focus should be to learn. Anyone should have enough capital without having to go on margin.

When I first started day trading, I found a firm that gave me 10X my capital on day trading and 4X for overnight with no cost of carry. It was such a great deal. But I was learning, and I was I wasn’t making good trades. I wanted to make money so bad. I wanted to just trade and I thought the leverage would get me there fast. My results were erratic and eventually I took enough losses that I had to close my account.

A consistent, tested risk management plan with a solid methodology is what all new traders should focus on. Advanced traders who have developed consistency can use margin to accelerate their progress and grow their bankroll exponentially, but new traders need to acquire a consistent methodology first.

Want to know where you can get a consistent methodology? I’ll be posting what has worked for me in future posts. Until then keep researching and if you are going to trade, trade small.

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