Also if you buy stocks or futures with margin you can lose far greater then your account as well. 1 ES contract is aprrox $84,000. If you purchase it on a $3,000 margin and the market crashes to 0. You will owe $81,000. Odds are slim that will happen. But you could have a flash crash that causes you to owe because your position was liquidated at beyond what was available in your account.
The following user says Thank You to tturner86 for this post:
Yeah, I'm pretty much buying and selling plain ol' vanilla stocks. I don't know what shorting is, ditto for margins and options and futures. Think of the most basic kind of trading and that is what I do. This is why I was thinking a formal education is what is next on my horizon. But I think I'll start with books and webinars like you guys are suggesting. It just feels like each webinar I encounter is about charting and my eyes just glaze over.
My advice is just stay away from all of the above, it'll fill your head with such nonesense it'll ruin your trading for ever, they teach you how not to trade for a reason, ie take your money.
Keep it simple, if your method regardless of how lacking you think it is, is working in demo, try it with a small live $ account, nothing you can't afford to lose ofcourse.
Stay away from Shorting and Margin accounts, that way not got to worry about Pattern Day trading SEC rules.
I see Dow is in a bull market currently, so any long will pretty much make a profit, sadly when the market turns all your trades will fail, how long will the bull market continue ?? don't try to guess it, keep playing it until it's over!
The following user says Thank You to Turveyd for this post:
Go live now, and start super small. Start noticing the difference between paper and live trading. Then, re-assess after a while if the way you are trading is still the way you want to keep trading. If so, maybe there are some tweaks you need to make that you will discover. Or maybe you still do well but not as well for some reason(s). Or, if you lose when on paper you would have normally won then maybe you need a whole new approach.
The point is you won't know which direction to go next until you first start trading live money. You can get all of the education and advice that you want but experience is the best teacher.
The following user says Thank You to shodson for this post: