I've watched a few videos on this topic. Seems like the point of which they margin call is subjective? "If the value of the account decreases too quickly or dips under a threshold." If you're simply investing 2k in X stock and adding an additional 2k on margin-- Robinhood deems 2k as the floor level in which in cannot dip beneath. So how much room for variable is there for the entire sum of $4,000? Trying to wrap my head around this.
Build a dividend equity preservation portfolio and take out only 30-50% equity and this isn’t bad if you understand the companies you invest in. I use margin and have been very successful with it. Every thing comes with risk nothing is for sure this is a tool like a mortgage is no more or less risky
I believe there's an ''optimal'' safe ratio don't you? For example, VUN is YTD -20% so that's a pretty safe bet. I would like to use margin but too lazy/busy right now.
@purefire21 If that's why u don't recommend stop loss than you don't have anything to do with markets trading 😅😅😅😅...you have 6hrs and 30min to trade WITHIN the markets...
Imagine being dumb enough to not understand the reason billionaires arent doing covered calls. Its so they dont have to pay 50% in taxes. 8 percent interest vs 50 percent in taxes🤦♂️
@MooskiiiTV I have been doing it for years, never had to use margin, not worth the risk. I can make enough to be satisfied by day trading options if I really wanted, but I tend to trade futures more.
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Margin is great until it's not 😅
Scary how some new investors use it without fully understanding it
_some_ brokers are throwing it at newbies!
I started with cash stocks and seen this option on Robin hood of margin trades so I now know to stay with cash options to avoid more risk
Saying margin sucks is like saying a mortgage sucks or a heloc sucks. If you don’t know how to use margin then don’t use it.
I'd tend to agree
It's called using a stop loss...
I've watched a few videos on this topic. Seems like the point of which they margin call is subjective? "If the value of the account decreases too quickly or dips under a threshold." If you're simply investing 2k in X stock and adding an additional 2k on margin-- Robinhood deems 2k as the floor level in which in cannot dip beneath. So how much room for variable is there for the entire sum of $4,000? Trying to wrap my head around this.
Didn't know that. Thanks 👍
No problem - thanks for watching!
Build a dividend equity preservation portfolio and take out only 30-50% equity and this isn’t bad if you understand the companies you invest in. I use margin and have been very successful with it. Every thing comes with risk nothing is for sure this is a tool like a mortgage is no more or less risky
help me bro
What if it’s on options ,example cash secured puts on $TSLA
I lost like 300$ cuz of not knowing the margin things, it just automatically cleared all my money
Wait so I been buying 10k worth of stocks and selling them for more cash flow. Does that mean im in debt?
All debt sucks......
"All animals are equal, but some are more equal than others."
thank you
I believe there's an ''optimal'' safe ratio don't you? For example, VUN is YTD -20% so that's a pretty safe bet. I would like to use margin but too lazy/busy right now.
Have you heard of "Stop loss"? 😂😂😂
have you heard of stop loss don’t work after hours or pre market
@purefire21 If that's why u don't recommend stop loss than you don't have anything to do with markets trading 😅😅😅😅...you have 6hrs and 30min to trade WITHIN the markets...
Imagine being dumb to enough to use margin when you are a billionaire, dividends or selling covered calls would be the smart thing to do.
Imagine being dumb enough to not understand the reason billionaires arent doing covered calls.
Its so they dont have to pay 50% in taxes. 8 percent interest vs 50 percent in taxes🤦♂️
You think selling covered calls is more effective than using margin ? 😂😂😂
@MooskiiiTV I have been doing it for years, never had to use margin, not worth the risk. I can make enough to be satisfied by day trading options if I really wanted, but I tend to trade futures more.