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Should I have a margin Account

QuestionsCategory: QuestionsShould I have a margin Account
andrew_n asked 1 year ago
Hey Pat and Owen,  So I asked a bit ago about how to handle the PDT rule.  Appreciate your help then.   Follow-up question: In talking to my broker I by default was set up with a margin account.  If I remove the margin and make my account cash only that removes any PDT restrictions.   I am NOT currently having trouble with PDT, but would maybe be bit more quick on some positions to take a lose or sell into strength if it wasn't there.  I keep asking myself, "Do I want to use a day trade for this?" Here is the question: Should a beginner like me be in a margin account?  Even if the market were a full-tilt bull market I don't think I would be comfortable using the margin given my level of experience, but maybe that is me selling myself short.  I am thinking of asking to have my account turned into cash only.  Would that be a mistake?    Thanks, Andrew     
1 Answers
Avatar photoOwen Staff answered 1 year ago
Hi Andrew, Pat made this video for you... https://youtu.be/BNKLVnGAqQE
andrew_n replied 1 year ago

That is exactly the answer I expected from Pat. Be conservative and get the skills down with cash first. Then worry about margin.

To be clear I am not trying to decide to day trade or not. I am was trying to ask myself, “If I have only have three times to cut a loss off or take profit on show of strength when I just opened the position today should this be one of those times?”

Overall it is bringing stress into my decision making so I have decided to go cash only. As Pat says this just be affected your sleep.