Margin trading

[lucifersam666]

What's up BLers I wasn't sure if this was the best place to post, so moderators, feel free to do your thing. Anyways,

I have been curious about longing/shorting (in general) for some time now. I have big ideas about doing so with cryptocurrencies (such as ethereum, nem, dash, golem, litecoin, and yes, of course, bitcoin). Also, interested in margin trading in the stock market, too.
I am not asking for your specific strategies or whatever, I am merely asking if anyone can nudge me in the right direction via experience, stories, websites, advice, or anything that could help me learn. Don't get me wrong, I have googled a lot of stuff, but there is too much information out there to take in at once.
Now I understand that all the advice or suggestions in the world don't amount to actual experience, but I am just overwhelmed on where to start.
Thanks,
LS

 

[Cheshire_Kat]

Hi Sam

I've been mining BTC since 2012. The first thing to remember if you are investing vs mining is don't invest more than you are actually willing to lose.

I would advise you to research carefully before acting. I've made loads of money, but it is possible to lose as much as I've gained and more.

Never leave your crypto on wallets where you don't have the private keys. The private key assures you that no-one can steal it from you. Trusting an exchange with you crypto can cost you your crypto that you have "stored" on it, don't be careless.
If you have specific technical questions I'll try to answer, but I cannot offer investment advice.

 

[lucifersam666]

Thank you for your input, although, I am already aware of all this. I currently have a "small" portfolio of crypto I have been collecting. All in secure wallets, as well. I'm not new to the game, just new to trading. Currently, I am just curious about shorting/longing. I am not looking necessarily for advice on investing (unless willing to give), but merely looking for suggestions on how to become involved in margin trading. Obviously, I need to research and read, but advice on specific reading and research material would be appreciated, and it would also help narrow my search. Anything that could take me a few more steps toward becoming an active day/week trader.

I guess my question is What steps did you (or anyone reading this with day trading xp) take to learning how to margin trade? What are the fundamentals?
Thanks!

 

[thujone]

i do some margin trading in FX, there are a lot of dodgy offshore brokers offering crazy leverage but i stick to a CDIC-insured broker (that's Canada's FDIC)

paper trading is the best way to learn, all good brokers have a demo platform to try on. the issue with cryptocurrency and stock market trading is that prices *can* crash, which makes it inherently riskier than FX. in FX there is always liquidity to bail you out if the trade moves against you. but in a flash crash, if nobody is buying at your stop-loss price, there's nothing you can do but watch in horror.

so... on top of the risk of a margin call robbing you of your capital, there's also the risk that the exchange pulls a MtGox on you and FDIC isn't gonna be there to pull your chestnuts out of the fire.

i dunno, i love Bitcoin and margin trading but combining the two just sounds like a recipe for disaster.

 

[starting_over]

Start with a simulator, then move to a cash account, not margin. Get familiar with the terminology and see what sort of trading platform your bank offers. If you don't like it, choose a different online brokerage with low transaction fees.

Avoid cryptocurrencies, thujone explained why.

Stick with NYSE / Nasdaq if you're from the states. FX is difficult to start with, I'm nowhere near comfortable with it so I stay away. I'm just TSX and mutual funds these days, used to TSX-V (joke exchange) but was kicking myself for not exchanging CAD to USD when the dollar was on par, buying US shares, and cashing in when the CAD sank again.

 

[lucifersam666]

Thanks for the replies!

 

[trogere]

I would be careful with the stock market at this moment. Valuations are high and rising interest rates are bad news.

 

[hydroazuanacaine]

don't invest more than you are actually willing to lose.

such a simple statement it's easy to think "of course." make sure you're actually checking yourself, because this is the golden rule.

you should trade long, with cash. and expect to lose before you figure things out. if you have the patience for a simulator, great. if not, again, expect to lose before you figure things out.