[Tigerman11]

I also watched the video on the front page today and would like ot know why Dan says he doesn't use margin when trading stocks. He says he uses margin sometimes when trading futures, but not stocks. Thanks. By the way, if Dan answers my questions personally, I would like to say that I watched all of your videos and they have helped me tremendously so far. Thinking back over my 7 month trading career, I have made a million mistakes that I now wish i could take back, but that's all part of the learning process i suppose. Thanks for all the hard work that Dan and David have done.

[Airelon]

Heyya Tigerman,

Margin on Stocks:

In re: to not using margin on stocks. Well ... it's just one of those funny quirks that traders develop. I usually hold to only using 3% of my account equity, for any one trade. Now mind you - my account is what is termed a "margin account". In other words, I could use margin, if I wished. I want a margin account, because it makes something called "Settling" much easier. I recommend that new traders keep to a 2% risk, of total account equity. I always like to have a higher account equity balance, and therefore, using margin just never made a lot of sense to me. I don't see it as really necessary with stocks. Leverage can be a double-edged sword. Although I'll lock up as much as 10-15% of my account buying stocks cash - and although I do own a margin account? I only risk 3% of it in the trade.

Challenge Project:

As to the Challenge Project. Here is a playlist of videos, that discusses the Challenge Project.

For many, many .... many reasons (Another of which, I'm going to mention in the video I upload today to YouTube) - I decided to start a side project. I made sub-accounts at a couple of my main brokerages. With $500 initial deposit, and $100 deposit a month, and using live trades, I'm demonstrating that if you use money management correctly? You can make it. A person can accumulate wealth. But I'm not going to 'hype it', as you see on so many infomericals. I'm showing and demonstrating what you 'really' need to think about, starting off with only $500.00, and $100 a month. I'm not trying to demonstrate 'trading techniques' as much with the Challenge Project, as I am money management ideas. And what specific challenges the low funded trader needs to think about.

Of course, I do this with the trading mechanisms that I am familiar with. Stocks. Futures. Futures Options. But that's just me. But each decision you see me make with the Challenge Project? It's related to the most important aspect of trading. Money Management Principles.