9.04% currently.
yea I was way off on margin calculation...amount borrowed X interest rate -> / 360 -> X number of days borrowed.
From Investopedia:
Suppose you want to borrow $30,000 to buy a stock that you intend to hold for a period of 10 days.
In order to calculate the cost of borrowing simply:
Take the amount of money being borrowed and multiply it by the rate being charged:
$30,000 x .06 (6%) = $1,800
Then take the resulting number and divide it by the number of days in a year. The brokerage industry typically uses 360 days - not 365:
$1,800 / 360 = 5
Next, multiply this number by the total number of days you have borrowed, or expect to borrow, the money on margin:
5 x 10 = $50.
Using this example, it costs $50 to borrow $30,000 for 10 days.
From Investopedia:
Suppose you want to borrow $30,000 to buy a stock that you intend to hold for a period of 10 days.
In order to calculate the cost of borrowing simply:
Take the amount of money being borrowed and multiply it by the rate being charged:
$30,000 x .06 (6%) = $1,800
Then take the resulting number and divide it by the number of days in a year. The brokerage industry typically uses 360 days - not 365:
$1,800 / 360 = 5
Next, multiply this number by the total number of days you have borrowed, or expect to borrow, the money on margin:
5 x 10 = $50.
Using this example, it costs $50 to borrow $30,000 for 10 days.
since old pharts recommendation I have been researching the forex market...pretty intimidating honestly. the amount of leverage these "brokers" are giving (200:1 in some cases) can get you in trouble in a hurry. Its very interesting and at first glance it seems like the way to go for a day trader but as I dig deeper I'm not so sure. The overall vibe I am getting is more like a crapshoot than with the equity market...
I tend to overanalyze everything so step 1 is to continue my research.
doing well on my paper account with optionshouse averaging about $200 a day profit. not exactly bragging material but happy to be making successful moves. Like everyone else I see that I also have trouble cutting my losses. I am holding onto losers exactly like I shouldn't be doing...letting my emotions run in hopes that they come back up. Another issue I am having is finding the volatility needed to make big profits.
I tend to overanalyze everything so step 1 is to continue my research.
doing well on my paper account with optionshouse averaging about $200 a day profit. not exactly bragging material but happy to be making successful moves. Like everyone else I see that I also have trouble cutting my losses. I am holding onto losers exactly like I shouldn't be doing...letting my emotions run in hopes that they come back up. Another issue I am having is finding the volatility needed to make big profits.
A fella can live on $200 a day. Just sayin...
One thing you might try if your account allows it is a sell order once it hit's a price you set? That way it's kind of out of your hands and removes the emotion of it.
I failed to mention that my paper account has $100,000 in it lol. I'm not going to have near that amount of capital to throw around so the daily take home is inflated. Also, I'm not sure how well they monitor the free ride rule in the simulator...pretty sure I exceeded my trade limit for the day. To me, the lack of a settling period is the most attractive thing about the FX market.
Well that does change things just a bit. lol
I'm not up to speed because I'm not an "active" trader but I thought that you could sell and buy and couple of times at least not having to worry about settling. I guess you can get into trouble if your are doing trades all day long, but I hold for few days at the very least.
