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/biz/ - Business & Finance

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2833609 No.2833609 [Reply] [Original]

Is margin trading a good way to make money when starting with a small sum?

>> No.2833630

It is basically gambling

>> No.2833646

>>2833630
Do you have a single fact to back that up?

>> No.2833651
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2833651

It's all fun and games until you make a mistake guessing the direction of the market and get that margin call.

>> No.2833661
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2833661

>>2833609

It can be, just as it is a good way to lose money starting with a small sum. Can you afford to lose 3x your initial investment/bet ?

>> No.2833682

so long as you accept that any money you margin with is already gone then sure if you're smart about it.
>>2833661
you'll be liquidated long before you reach that point.

>> No.2833701

>>2833646
Even being 90% sure if something will go up or down using support walls, tech analysis ect, crypto is so unpredictable that you can still be wrong.

Like right now, you would expect btc to go down after it's huge climb today, but it could just be the beginning. Flip a coin.

>> No.2833705

>>2833609
Look up leverage hedging. leverage(dept) is almost always a good thing if you can properly manage the risk.

>> No.2833710

No because you're limited by your margin. You're either using only a small part of your already small amount of money as magin, meaning small gains. Or you're using a big part of your money, which means you can get margin called easily and it's basically gambling. So if you want to gamble then do it, if you don't then don't.

>> No.2833715

>>2833701
And all we have to do is crack the code.

>> No.2833719

>>2833609
yes. you could also get a payday loan to bump your starting capital. you'll pay it in no time anyway.

>> No.2833726

>>2833609

With coins it is okay, as you can only lose what you put into it.

With ETF, a margin call can literally fuck up everything in your life. It happened and will happen in the future to people too full of themself.

>> No.2833736

Margin trading rocks!!!
>makes tons of money margin trading
>acts like a super smart alpha dude on biz
>loses it all in one bad call
>stops posting on biz

>> No.2833760

>>2833609
Number one, that's terror.