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So Marie just asked in the chat she said I'm thinking about setting up an account with $5,000 Should I use a margin account which would allow me to trade three times in one day or should I use a cash account I'm inclined to say um, this is this is what I think is the best way. What I think is the best method if you have a small account I think your best approach is to trade in a cash only account with is small share size does my strategy work. Can I be consistent? Can I grow the account and it's awesome when you can do that with no fees. So if you're using Thinker Swim or even if you're using Robin Hood or Weeble just to you know, take a couple trades every day with 10 shares.

you're going to have an opportunity to track your metrics. track your performance if you do that for 3 months for six months for even a year potentially. And you've got really solid metrics, you basically have a business model that is proven profitable.

By Stock Chat

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17 thoughts on “I have a $5k account. should i use cash or margin?”
  1. Avataaar/Circle Created with python_avatars Rick Pouliot says:

    What about the PDT rule thing ? I thought you couldnโ€™t trade with Robinhood or youโ€™d get whacked with a fine.

  2. Avataaar/Circle Created with python_avatars AyushTheGreat says:

    Can you please tell what futures to trade

  3. Avataaar/Circle Created with python_avatars Night stalker says:

    Margin account is much better. But before that you need to know how to trade first.

  4. Avataaar/Circle Created with python_avatars ะŸะงะตะป 025 says:

    ะญะขะž ะขะะš ะŸะ ะ˜ะšะžะ›ะฌะะž ะœะžะะขะะ– ะกะฃะŸะ•ะ  ะฃะ”ะะงะ˜ ะขะ•ะ‘ะš ะ’ ะ ะžะ—ะ’ะ˜ะขะ˜ะ™ ะฏ ะ’ ะขะ•ะ‘ะฏ ะ’ะ•ะ ะฎ)

  5. Avataaar/Circle Created with python_avatars ะŸะงะตะป 025 says:

    ะขั‹ ั‚ะพะฟ ะฝะธ ั‚ะพ ั‡ั‚ะพ ะดั€ัƒะณะธะต

  6. Avataaar/Circle Created with python_avatars Michael Anderson says:

    Youre gonna lose money so dont trade. Honestly. 99% of traders fail…

  7. Avataaar/Circle Created with python_avatars C says:

    Any platform thatโ€™s for free in canada like robinhood pls?

  8. Avataaar/Circle Created with python_avatars P N says:

    Cash is King. Thanks Ross.

  9. Avataaar/Circle Created with python_avatars C. Scott says:

    Cash account. Divide it by six and trade 3 slugs each day. Good practice and keeps your position size appropriate.

  10. Avataaar/Circle Created with python_avatars Derek Roberson says:

    This is gold! I was dumb and waited until I could meet PDT requirements.

  11. Avataaar/Circle Created with python_avatars Cache Moola says:

    Cash. You blow that or break even starting out guaranteed.

  12. Avataaar/Circle Created with python_avatars Jessica Kendal says:

    Just got a โ€œlarge traderโ€ letter from TD. Can you cover this?

  13. Avataaar/Circle Created with python_avatars LilLadeus says:

    I thought 3 times a week not a day

  14. Avataaar/Circle Created with python_avatars PN says:

    I've been doing exactly that ( cash acount, small sizeโ€ฆ and am now willing to join your tool's subscription after participating in your 2-week trial. Even though it was a quiet two weeks and no trades were made, thanks for sharing your expertise on YouTube!

  15. Avataaar/Circle Created with python_avatars JohnBoz says:

    I had $5,400 to start. I put $1,700 in cash and $3,700 in margin. I found that I tended to take way too much risk in my margin account due to the PDT limitation. If I were exclusively swing trading and used the trades only when needed as stops, it probably would have been ok. I just withdrew my margin funds and will put them back in my cash account. I am 4 months in and am about a break-even trader in that time. Im still looking for my strategy. I need the iterations provided with small trades in a cash account till I find my edge and get profitable.

  16. Avataaar/Circle Created with python_avatars survivemich survivemich says:

    Cash

  17. Avataaar/Circle Created with python_avatars Mo Bill says:

    Margin so you have more buying power, even if you can take 3 trades a week .

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