Replies to post #7283 on OPEN HANDED TRADERS

[skibum2k]

Great advice MOON!!!!

[UgotStocks]

BINGO!!! HUGE, Great advice and used that VERY same method starting out. Also early I had 3 different brokers to help spread things out till I got to the magic 25G mark combined then put all into one main account and never looked back since.....but I held many and still do overnight. Issue w/a prop trading desk in pennies is to do what they would not normally do in trading. To a degree literally is forcing you to trade and be out by end of day unless you are willing to pay a $250.00 penalty for holding overnight. How many have great momo and gap he next morning? Personally no way I could use as I hold soooooo many for months at a time sometimes. IMO prop desk trading should be for big board stocks as they do not move at the scale of the pennies (most of the time) it allows you to through a nice chunk of $$$ at a play and of course you hope it moves up a few pennies and you sell out move to the next.

Your post should be a sticky at the least imo......

[hach123]

exactly what i needed to hear. thanks chris

[vikingzskillz]

Very good idea, and it should be followed to have liquidity...Nothing worse then buying with unsettled funds and seeing a stovk up 300% and themn lose it all because you can't sell..


Example, SAEI buy for a couple hundred $$ at 0.31 watch it go as high as $1.00+ in 2 days(+300%) can't sell because funds aren't settled and then haulted..

[lostinla]

hi there moonbat. i am working on a board to get it 're-vitalized' and it has worked as a good neighbor with OHP.

i am going to use your post if ok.

anymore tips? :)

lila

[jmurfk]

To add;

I think people don't understand how easy it is to go from a cash account to a margin account. On margin, there are no settlement waits. Also, if your only trading pennies, you still trade on margin, but with a 100% equity requirement. So, on pennies, margin is not much different than a cash account, you just don't have to wait for trade settlement. Most brokers require 2k balance in the account to request a margin acct, and you need to keep track of day trades if your balance is under 25k.

Usually it is a simple form you fill in and fax to your broker. Very easy.