7 Tips to Master Margin Trading

7 Tips to Master Margin Trading

Chapters
0:00 Intro
1:41 What is the difference between margin and portfolio margin?
2:57 How do you use margin safely?
3:55 One problem with trading on margin
4:23 How much margin should you use?
5:07 7 Tips to Successfully Trade using Margin

Other videos I think you will like:

Would you like to know how to use margin like a pro? Like a hedge fund?

In today's video, I'll explain how to use margin safely when trading options, helping you to maximize your profits while minimizing risks.

Just like riding a bike is safe but slow, and flying a plane is fast but needs more skill, using margin in trading needs careful handling to avoid crashes.

I'll cover the key things you need to know to use margin effectively. These insights will help you trade smarter and safer.

Join me to learn how to make margin work for you, not against you!

Happy investing!
Randy Perez

#margintrading #tradingcoach #tradingmentor

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[alphabeta]

3:55 Keeping an eye on options positions
5:00 Never use a high amount of margin
6:25 Sell OTM options
8:10 Close profitable options early
8:50 Backtest
11:20 Hedge
11:55 Staircase up, elevator down

[taylorwright]

Another fantastic video Randy. Very educational

[OptionsForLongTermInvestors]

Good stuff. One thing I'd add is always try to make sure you're not paying margin interest. Most brokers charge too high a rate and it's like not paying your credit card bills. So if your short put looks like it's going to get assigned, make some tough decisions to avoid paying interest after assignment.

[mikesurel]

Margin was better 4 years ago 😂. I have only carried a margin balance a couple times and paid it down as quickly as possible. Seeing those interest charges made me sad. I like the trades allowed, but the only time I am going to come close to dipping into margin is if some no brainer opportunities present themselves. Until then it is just slow and steady.

Love the videos.

[aaron]

Excellent video, as always. My only experience woth margin so far was inadvertant when my brokerage loaned me the money for a trade in a foreign currency instead of using the cash I had in the account. It was a small position and it took me a couple months to realize I was paying a small bit of interest.

[CAPTAINSARGE]

Be useful to mention the interest repayments on the margin

[entertainmentinternational]

I use margin with profitable company and selling premiums only... I have to make sure I make money weekly to buy margin down.. 1 thing I do have to do is lower risk.. which ima do next week... if my stock goes into profits I'm selling some at profits and the rest covered calls to collect more money... I've had to sell options out 2 3 months to cover margin which worked out perfect

[Shiftheads]

Another good video thank you. A couple ideas for the future maybe go over the interest rates of margin and what a margin call is. A cash secured sold put vs a margin one and what that looks like. Initial vs maintenence margin. Not sure if you follow SOFI but they have had juicy puts at 7.50 and 7.00 and they report earnings on Monday. For instance I sold a may 3rd 7.00 put last week for 40 cents a share when the stock was in 7.30s. Annualized return from last couple months of sofi is over 100 percent. Pretty much been getting 15-20cents a week off 700 dollars of secured puts. Don't know what will happen after earnings though