Cash vs Margin Account

wino59

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I have a problem with my new trading system.

My trades generally hit or miss between 1 and 3 days... If it goes to day 4, I am out. It is not a day trading system, but in the last 10 trades, 4 of them hit on the same day.

My problem was realized yesterday when one of my trades hit, but I had used up my 3 day trades on my margin account. Now the trade quickly reversed, however it has not hit my stop loss yet, but I am pissed that a winning trade, could now turn to a losing trade, because of this stupid 3 day rule.

From what my broker told me... If I set up a cash account vs. a margin account, I can day trade as much as I want. However I will not have the leverage, or the ability to place as many trades as I would like.

This is my dilemma.... I don't want to modify the trading system at all. So should I keep the margin account, and stop trading until I get day trades back, or move to a cash account, and just slowly keep building the account.

Seems like I am screwed no matter which way I go. If I go cash account then I can't place as many trades, but I can get out when they hit... If I stay with a margin account, I can place more trades, but may miss some profitable trades based on the 3 day rule.
 
Welcome to the Wide World of US Regulations. Just bend over to receive your consolation prize.

Peter
 
Its not necessary that you should place too many trades to make profits. Just take the high probability trade and gather good number of pips. I think that margin account is still best.
 
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