Why You Should Open A Cash Account
We give out a few alerts per day depending on the market conditions. Sometimes you get into a trade, the options move +50% and you can't believe how easy this trading stuff is. Then something happens; a news release, a tweet or sometimes there is not reason but the stock price plunges. You just went from 50% gain to a 10% gain or worse in a few minutes. "I don't have any day trades!" "I need to keep holding." All the time we hear those words we all struggled with "I am all out of day trades"
What if you could have locked in that 50% or even locked in half of your options for a 50% gain. What if you put in $1,000 into a trade, you were up 50% and could have locked in $750? You let the remaining $250 you invested there to see if it will continue to run and you could close that out at anytime you want.
"But, I don't have $25,000 so FINRA Rules don't allow me to"
So, what can you do?
You can open a cash account. With a cash account you can day trade all you want with settled funds. What's that mean? If you have $5,000 in your account you can day trade up to $5,000 per day. Once you exhaust that $5,000 you will have to wait until the following day to start trading again, but if you are trading more than that with such a small account you could be in trouble anyways. Each day, your cash resets and you can start day trading again. This only works with marginable securities meaning if you are day trading penny stocks you will have to wait 2-3 days for the cash to settle. But, for us and options it is only a overnight settlement.
We have a member who trades off of our momentum alerts, day trades and makes anywhere from 20-50% per day on her day trades. That's all she does because "the markets are too hard to swing trade"
"I'll take my daily gains and gladly sleep well at night"
"Give the market $1,000 and 35 min. later take $1500 back."
We reccomend all of you to do this. Do not wait for our exits to close out trades, if you are up a good bit and you can day trade make sure you always pay yourself first! You will never go broke taking money from the market!