Margin Trading Strategies

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Margin Trading Strategies – This is a place for the community to provide tips and advice on Margin Trading Strategies. This topic was created by Antoine Coll and the tips are provided by the community. The tips you add here can be your own or referred from another site. The best tips are then ranked at the top when up-voted by members of the community.

Tip 1 - 9 Simple Tips For Successful Margin Trading - Stock Trading To Go

Published: 9 years, 6 month(s) ago | Submitted by ailijic | permalink

Margin trading is a great form of leverage when investing in the stock market. Not everyone uses it because not everyone is approved for it, and like every form of loan whether it is a home mortgage or a stock position, tricks of the trade always help. The following are 9 tips for trading margin with success: 1. Know the interest rate. Just like every loan, there is an interest rate for what is borrowed. In the case of the stock trading, any online stock broker typically will charge somewhere around 8% a year interest on borrowed funds (rate varies depending on total portfolio value). By understanding the interest rates there is a stronger chance for investment success. 2. Buy over time, not in one shot. Depending on the portfolio size more often than not investors should buy into a position over time and not with one large order. Try taking half the position at first, find some headway (1 - 3%) to the upside and then add to it from there. This will keep your risk to a minimized level
Tags: margin trading,9 simple tips for successful margin trading,stock trading,margin trading tips,successful margin trading,margin call,leverage,interest rates

For further reading: http://www.stocktradingtogo.com/2007/09/06/9-simple-tips-for-successful-margin-trading/ ^[1]

Tip 2 - Margin Trading: Introduction | Investopedia

Published: 9 years, 6 month(s) ago | Submitted by Anne Tooman | permalink

Find out what margin is, how margin calls work, the advantages of leverage and why using margin can be risky.
Tags: margin,margin call,leverage,buying power,risk,initial margin,maintenance margin,minimum margin,options,beginning investor,financial leverage,margin account

For further reading: http://www.investopedia.com/university/margin/ ^[2]

Tip 3 - Long Common Stock on Margin

Published: 9 years, 6 month(s) ago | Submitted by Johan Gustavsson | permalink

How to buy long common stock on margin. Get detailed strategy tips, entry and exit guides and examples for buying common stock on margin.
Tags: buying stock on margin,buy stock on margin,trading stocks on margin,long stock on margin

For further reading: https://www.tradeking.com/education/stocks/strategies/long-common-stock-on-margin ^[3]

Tip 4 - Day Trading Strategies - HowStuffWorks

Published: 9 years, 6 month(s) ago | Submitted by IAM Merrit | permalink

Day trading strategies that most day traders use include leverage and short selling. Learn more about some different day trading strategies.
Tags: day trading strategies, day trading strategy, strategies for day trading

For further reading: http://money.howstuffworks.com/day-trading5.htm ^[4]