New to Day Trading

[redpine]

I'm new to day trading and have built an automated trading system. Right now I'm at the point of just testing the guts. But I have a couple of questions about day trading and scalping. Lets say I have $25,000 in equity and $100,000 in day trading power. I make 5 trades totaling to the $100,000 in day trading power. I quickly sell those 5 positions. Can I make another 5 trades totalling $100,000.

Is the day trading power the amount at any one time I can have in positions or is it the total amount I can trade in one day.

Thanks,

Dan

 

[ammo]

if you have 10k and the margin is 2k per 1 lot and you buy 5 using your 10 k margin and sell 5 for a $200 loss you now have $9800 left, enuf for a 4 lot at $8000 margin and you remaining $1800 is not enuf for that last 1 lot of $2000 margin

 

[Jack o'Clubs]

Is the day trading power the amount at any one time I can have in positions

Yes. As soon as you close a position your margin is free to be used somewhere else.

 

[daytradingUK]

Think of your trading account as like escrow - while your in a position your margin cash is held in escrow for the duration of the position. When you close your position the money 'returns' (plus or minus your profit/loss) to your cash account and you can use it again.

This is how I think of my cash and it serves my purposes.

 

[CYOF]

I'm new to day trading and have built an automated trading system. Right now I'm at the point of just testing the guts. But I have a couple of questions about day trading and scalping. Lets say I have $25,000 in equity and $100,000 in day trading power. I make 5 trades totaling to the $100,000 in day trading power. I quickly sell those 5 positions. Can I make another 5 trades totalling $100,000.

Is the day trading power the amount at any one time I can have in positions or is it the total amount I can trade in one day.

Thanks,

Dan

Hi Dan,

I would be very careful with Automated systems until you have a good deal of experience.

Grey1 has a very good Technical Traders private group, which is dedicated to automated trading - and I have just started a new private group called CTM - Conventional Trading Methods.

Both can be requested from your User CP panel under "Group Memberships"

I would take some time to look at what others are doing before you decide to risk your money - it is very easy to loose a lot of money daytrading - a lot easier to loose that it is to win.

Regards,