Mr. Charts
Legendary member
- Messages
- 7,370
- Likes
- 1,200
Just to clarify a couple of points:
Some subscription "services" buy a stock for their own account then recommend it to their subscribers and sell into the price spike. Vice versa with shorts.
They then "demonstrate" to their subscribers how the price did indeed rise, thus gaining more membership.
Certain chat rooms do the same.
To open a Pattern Day Trader account you do indeed need $25k but that gives you $100k of trading capital to day trade.
Similarly a $100k acct has $400k of ability. I never advise anyone to trade that high an amount in one stock position, but you can certainly trade several positions if you so wish. but again I usually advise my clients not to have all their positions either long or short but to trade a mixture to maintain tight money management and keep their risk profile very low. For example, be long some very strong stocks and short some very weak ones so any sudden non-market related event doesn't blow you out - like Sadman Insane being confirmed killed or launching a CBRN missile.
Some subscription "services" buy a stock for their own account then recommend it to their subscribers and sell into the price spike. Vice versa with shorts.
They then "demonstrate" to their subscribers how the price did indeed rise, thus gaining more membership.
Certain chat rooms do the same.
To open a Pattern Day Trader account you do indeed need $25k but that gives you $100k of trading capital to day trade.
Similarly a $100k acct has $400k of ability. I never advise anyone to trade that high an amount in one stock position, but you can certainly trade several positions if you so wish. but again I usually advise my clients not to have all their positions either long or short but to trade a mixture to maintain tight money management and keep their risk profile very low. For example, be long some very strong stocks and short some very weak ones so any sudden non-market related event doesn't blow you out - like Sadman Insane being confirmed killed or launching a CBRN missile.
