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What are Margin Requirements? Quick Definition

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FREE eBook: "How to Day Trade" | Download Now: http://webinar.warriortrading.com/signup In this video, presented by Lightspeed Trading I go over the two basic margin requirements; Account minimums, and minimums for open positions. DISCLAIMER: http://www.warriortrading.com/disclaimer/ // Try our Day Trading chat room here: https://www.warriortrading.com/free-day-trading-chat-room/ Bookmark Warrior Trading News all about the stock market: https://warriortradingnews.com/See our Live Streaming Channel on TickerTV here: https://ticker.tv/daytradewarrior/ We teach Day Trading Strategies for Beginner Traders. We focus on Momentum Trading Strategies including Gap and GO! All of our classes are available for immediate streaming at https://www.WarriorTrading.com // Helpful Links Day Trading Chat Room: https://www.warriortrading.com/day-trading-chat-room/ Premium Trading Courses: https://www.warriortrading.com/trading-courses/ Gap and Go Trading Strategy: https://www.warriortrading.com/gap-go/ Momentum Trading Strategy: https://www.warriortrading.com/momentum-day-trading-strategy/ Reversal Trading Strategy: https://www.warriortrading.com/reversal-trading-strategy/ Email: [email protected]: @daytradewarrior @warriortrading1 @Largecapwarrior “Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime" // Learn How to Day Trade and Learn How to Swing Trade As Day Traders and Swing Traders our mission is simple. We are looking for stocks that we expect will move in a predictable direction. We want to take a position with a predefined stop level and profit target. Sounds easy right? In a lot of ways it is. But there are literally thousands of different strategies for trading the market. Every trader has a unique approach to trading. Our goal is to teach you our strategies. I have developed a series of profitable trading strategies for beginners. Our Trading Courses focus on the most fundamental aspects of a successful trade. // Chart Patterns After you understand risk management and proper stock selection, we teach you how to find stock patterns on charts. These patterns are how we base our risk and reward. We look for chart patterns that have well defined areas of support and resistance. We will use previous support levels as our stop price, or our risk, and we look at previous resistance areas as our initial profit target, or our reward. If the profit vs loss ratio is 2:1 we will take the trade. I teach both day trading strategies and swing trading strategies. For day trading we focus primarily on 5min charts while swing traders focus more on daily charts. The patterns in general are the same. I teach traders how to find patterns in real-time including Bull Flags, Bear Flags, Flat Tops, Flat Bottoms, and Rubber Band Reversal Setups. // Trading Strategies Learning risk management, proper stock selection, and chart patterns is important, but those alone don’t create a trading strategy. A trading strategy requires details on the time of day you take these trades, what type of stocks you like to trade, what percentage to success you expect. All our students are required to paper trade and prove to me that they can trade on a percentage of success that is high enough to justify real trading. If you can’t make money in a demo account, you have no business trading a real account. We have saved students hundreds of thousands of dollars by encouraging paper trading while they are learning. The market will be here for a long time to come. The important thing for you right now is to build up the skills to trade the market successfully. You will learn that once you possess the skills to consistently make $20.00/day all it takes to make $200 is larger share size. Then all it takes to make $2000 is again, larger share size. The hardest part is being consistently green just $20/day. So that is our initial target for all of our students. Profitable trading 4/5 days per week for at least 3 months.
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Text Comments (43)
Park Noyvimol (2 months ago)
Hey Ross, I was wondering, I will start live trading soon and am using SureTrader which option of SureTrader Pro did you use? They have a few options available. Did you pick the regional quotes and Nasdaq book depth option? Please let me know. Thank you.
Dee TRUTH (2 months ago)
Whats the downside to a cash account? You can only buy stocks with what you put in?
Jake Baller (2 months ago)
You have no leverage and if you make a trade you have to wait 2 days to trade with that money again.
Davilson Araujo (2 months ago)
Ross I am newbie here and I'd like to learn with you. So 3 things: - Which platform do you use to trade: Metatrader 4 or 5? - Where am I supposed to start to learn how to day trade - Where can I find information about the market in order to know which asset to pick up and trade? I would be eternally thankful if you could help me. Davilson from Sorocaba (in Sao Paulo State) / Brazil
Warrior Trading (2 months ago)
USA
Davilson Araujo (2 months ago)
+Warrior Trading Signed - I will be there. In which part of the world are you?
Warrior Trading (2 months ago)
Hey Davilson, I use Lightspeed to trade: https://www.warriortrading.com/lightspeed-trading-review/ The best way for you to learn more about trading and how you can get started would be to join us in the next live Warrior Trading webinar. It's free to sign up and you will receive a copy of my best selling ebook "How To Day Trade" just for attending! Sign up here: https://webinar.warriortrading.com/signup
Paolo Bonilla (2 months ago)
What do you meaning? Are you saying that broker let you loan money that day.
Warrior Trading (2 months ago)
Hey Paolo, You can read about Margin accounts here: https://www.warriortrading.com/margin-account-definition-day-trading-terminology/
Noxtreme (2 months ago)
So if I have 24,999 cash in a margin account (50k total buying power) am I under pdt? I am under the impression margin balance puts me above pdt rule. Also I’m td ameritrade.
Noxtreme (2 months ago)
​+Jake Baller and then don't loose. I'll probably just park some extra money in my account and not trade it. Interest rate is better then the bank.
Jake Baller (2 months ago)
Just find a dollar somewhere 😂
Noxtreme (2 months ago)
Jorge Gonzalez thank u.
Jorge Gonzalez (2 months ago)
It has to be 25,000 of your own money. So if you have 24,999 you're under PDT
Anukul Wankhede (2 months ago)
Thanks Ross . . Also.make video for minimum Monthly charges required to.pay for such day trading account
ewt415 (2 months ago)
You should do a video on margin violations when shorting stocks. Those are really daunting for people to read and understand when they're not familiar with the terminology, but those also could potentially screw people over without them even realizing it. In any case, great video!
Alaskan Life (2 months ago)
Thanks Ross I appreciate the information you produced.
Warrior Trading (2 months ago)
You're welcome!
Donald Keys (2 months ago)
Ross you forgot to mention there is probably no margin on IRA accounts even if you have over $25,000.
Jake Baller (2 months ago)
The title says and the video is about margin accounts not cash or 401k/ retirement accounts
Mario (2 months ago)
Interactive Brokers has amazing overnight margin interest rate. It's a swing traders dream.
Warrior Trading (2 months ago)
Yep that's true!
thomas o'callaghan (2 months ago)
Huge help ty
RubixMan99 (2 months ago)
What's wrong with a cash account?
Warrior Trading (2 months ago)
Rubix - https://www.warriortrading.com/cash-account-definition-day-trading-terminology/ Here's some good info on Cash Account
RubixMan99 (2 months ago)
+Warrior Trading Or just takes a few days for the money to go back into the account after selling?
RubixMan99 (2 months ago)
+Warrior Trading So it takes a few days to get into a position?
Warrior Trading (2 months ago)
RubixMan99 With the cash account you have to wait two days for trades to settle which means you really can’t day trade.
you wont be able to short stocks.
Kevin Ullman (2 months ago)
Concerning account minimums: if I open a new account with the brokerage's minimum amount, will I be dropping below that immediately as they charge me fees meaning I'll need to deposit more right away? For example, opening an account with CMEG ($500 minimum), do I need to put more in to cover data fees, software fees, inactivity fees (any others I'm missing?) as I'd like to spend a few months paper trading to learn the platform and to show consistent profits? I recall you opened your small account challenge at Suretrader with ~$700 but after fees, it came to ~$583. I'm trying to figure out how much to deposit into my new CMEG account initially so I don't have to repeatedly pay wire transfer fees in order to keep my account balance above $500. Thanks for any info you can provide and for entertaining such a wordy question!
I think you just have to add up the cost before deposit and then deposit. at the end if you lose on one trade you will fall below the required amount which means you have to deposit any way.
Beginner's Mind (2 months ago)
Kevin - For CMEG if you are wiring $500 then once the money reaches them they will be charging any platform fee or wire in fee immediately. If those fees are approximately 100$ then what you are left with is 400$ and since it is less that 500 it will be a cash account. But if you want to use leverage then for CMEG you should have at least 500 or greater to get 4:1 leverage. Eg after wire in and platform fees if you have 525$ then basically you can purchase stocks worth 2100( 525*4). In a nutshell if you want leverage then you have to wire an amount that is 500+Platform fees + Wire in fee. Check with CMEG what are the fees and then you will be good. Hope this helps an good luck.
Warrior Trading (2 months ago)
Kevin Ullman that’s correct! I made the mistake of funding my sure trader account at the end of December, so on January 1 they took out fees for December since my account was active. I’d recommend opening accounts early in the month so you don’t have fees until the beginning of the following month.
Willie Webbs (2 months ago)
Excellent information I always enjoy listening and learning from you
emmanuel amaechi (2 months ago)
First...
Hakuin Z (2 months ago)
I'm in a sub 25k cash account with no commissions right now so I can trade more until I grow to 25k+!! Thanks for the info Ross! Have a nice day :-)
Warrior Trading (2 months ago)
You're welcome! As you may know the United States has what's called the Pattern Day Trader (PDT) Rule.  That means you need a minimum of $25,000 cash balance in your broker account in order to day trade more than 3x in a 5 day period.  Since most traders take 3-5 trades per day, they are considered Pattern Day Traders.  Many of our new students don't have $25k.  There are brokers that are based off shore that do not adhere to the PDT rule such as Trade Zero (non-US only) and CME Group. You can learn more here: https://www.warriortrading.com/pattern-day-trader-definition/ You can open a brokerage with as little as $500 at some places. For the rebate program, TradeZero (Non-U.S. students only) requires a minimum of $1000 to qualify for rebate and Lightspeed required $25,000. But there are brokers that require only $500 to open an account, such as CME Group. You can learn more here: https://www.warriortrading.com/tradezero-broker-rebate-program/ and here: https://www.warriortrading.com/cmeg-broker-rebate-program/ I hope that makes more sense!
LA Reigh (2 months ago)
Over 25k in account can you have more than two trades a day total of 10 trades a week?
LA Reigh (2 months ago)
Warrior trading, knowledge is power, I really appreciate your reply and I want to make a move and see how things are.
Warrior Trading (2 months ago)
As you may know the United States has what's called the Pattern Day Trader (PDT) Rule.  That means you need a minimum of $25,000 cash balance in your broker account in order to day trade more than 3x in a 5 day period.  Since most traders take 3-5 trades per day, they are considered Pattern Day Traders.  Many of our new students don't have $25k.  There are brokers that are based off shore that do not adhere to the PDT rule such as Trade Zero (non-US only) and CME Group. You can learn more here: https://www.warriortrading.com/pattern-day-trader-definition/ You can open a brokerage with as little as $500 at some places. For the rebate program, TradeZero (Non-U.S. students only) requires a minimum of $1000 to qualify for rebate and Lightspeed required $25,000. But there are brokers that require only $500 to open an account, such as CME Group. You can learn more here: https://www.warriortrading.com/tradezero-broker-rebate-program/ and here: https://www.warriortrading.com/cmeg-broker-rebate-program/ I hope that makes more sense!
LA Reigh (2 months ago)
That's really awesome . Thanks for your reply.
Daniel Rand (2 months ago)
LA Reigh as long as u maintain an account balance over 25k u can make unlimited trades.
Hakuin Z (2 months ago)
First!!!!! =]

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