Red Streak
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I have a solid conceptual investment plan, and I am more or less clueless on how to execute it in reality.
Assumption: Silver prices are going to continue to rise over at least the next few months. They've done more than 14% in the past month, and I'm of the opinion that this will continue. Rather than attacking this assumption, please focus your attention on the following question.
Plan: I have about $30,000 in trading capital, and I want to put about $2,000 into a leveraged account where I can get 200x margins. Preferably higher, but certainly not the 2x my current broker is offering. I'll leverage the two grand, but keep the rest of the capital in reserve as a buffer against unpredictable price volatility. If the price dips too low, I'll set up trade triggers to guard against a broker-issued margin call, acting like a more conservative and personal margin call. I plan to start out by leveraging the invested cash to the extent that it puts me at 30k of risk, which is my total capital. From a risk perspective, nothing will change from my current position, where all my money is in a silver ETF. Except after execution, I'll have the ability to dial up the leverage, raising my risk, but ideally just making more money.
Bottom Line: I need to trade silver on a margin, preferably in the range of a few hundred x my cash. Is this possible? I see that some Forex brokers (like the one recommended here, FXCM) give 200x margins, but they only let you trade foreign currency, not silver (right?).
What is the best way to trade silver on a margin?
Disclaimer: I'm new to professional trading, but I've been dabbling for a decade or so. So I apologize if this question if framed in an incomprehensible manner, I'm more than happy to rephrase anything if it helps you understand me.
If I can make this work, it would provide the momentum I need to become a professional trader, which is my dream job. Or I can go back to law school. Haha. So not happening.
Assumption: Silver prices are going to continue to rise over at least the next few months. They've done more than 14% in the past month, and I'm of the opinion that this will continue. Rather than attacking this assumption, please focus your attention on the following question.
Plan: I have about $30,000 in trading capital, and I want to put about $2,000 into a leveraged account where I can get 200x margins. Preferably higher, but certainly not the 2x my current broker is offering. I'll leverage the two grand, but keep the rest of the capital in reserve as a buffer against unpredictable price volatility. If the price dips too low, I'll set up trade triggers to guard against a broker-issued margin call, acting like a more conservative and personal margin call. I plan to start out by leveraging the invested cash to the extent that it puts me at 30k of risk, which is my total capital. From a risk perspective, nothing will change from my current position, where all my money is in a silver ETF. Except after execution, I'll have the ability to dial up the leverage, raising my risk, but ideally just making more money.
Bottom Line: I need to trade silver on a margin, preferably in the range of a few hundred x my cash. Is this possible? I see that some Forex brokers (like the one recommended here, FXCM) give 200x margins, but they only let you trade foreign currency, not silver (right?).
What is the best way to trade silver on a margin?
Disclaimer: I'm new to professional trading, but I've been dabbling for a decade or so. So I apologize if this question if framed in an incomprehensible manner, I'm more than happy to rephrase anything if it helps you understand me.
If I can make this work, it would provide the momentum I need to become a professional trader, which is my dream job. Or I can go back to law school. Haha. So not happening.
