About Marginal Stock Trader
Updated April 9, 2023
MARGINAL means "close to the lower limit of qualification, acceptability, or function" according to one of the definitions given by the Merriam-Webster Online Dictionary. Being marginal is "barely exceeding the minimum requirements."
For purposes of this website, we may describe the marginal stock trader as one who is close to the lower limit of qualification or barely exceeding the minimum requirements for online stock trading. Let us also say this online stock trader has decided to use the services of BPI Trade for online broker in trading shares of stocks listed in the Philippine Stock Exchange (PSE).
Day Trading
Marginal Stock Trading is more about the application of the techniques and strategies for day trading. Day trading involves buying and selling securities within the same day.
BPI Trade FAQs
BPI Trade FAQs provides the following and we are quoting verbatim (italics and underscoring supplied):
Can I sell my investments on the same day that I bought them?
Yes. Your matched/filled buy orders are immediately reflected in your online stock position and are available for sale. Your current stock position can be found in the HOMEPAGE under MAIN menu.
If I sell today, can I already use the proceeds of the sale to buy other stocks?
Proceeds of your selling transaction will only be credited on the third trading day after the transaction date (T+3). However, if your sell transaction is matched/filled, sell proceeds will immediately be credited to your buying power which you may use to buy shares.
Mastering the Art of Day Trading: Building Expertise and Experience
It is a good thing that day trading is possible with our online stockbroker, so we can gain experience being a Marginal Stock Trader.
Day trading can be a highly rewarding but challenging endeavor. To succeed as a day trader, one needs to develop expertise and experience. This requires a combination of knowledge, skills, discipline, and patience. Precisely, these are the main reasons why we created this blog. We could even consider this our mission statement. Moreover, it is also one of our goals to can help promote and make the financial markets inclusive through this blog.
Build expertise with education and training
To build expertise, aspiring day traders should start with a solid foundation of education and training. This can include learning the basics of trading, such as technical analysis, chart patterns, and risk management. It's also important to stay up-to-date on market news, trends, and events that may impact trading strategies. There are countless YouTube tutorials, websites, and blogs dealing with the topic of day trading. Any one or more of these sources of information could be providing the perfect match for you. But in our case, we have chosen Oliver Velez to be our main guide.
Oliver Velez is a renowned trader, entrepreneur, and author who has made a significant impact on the world of finance. With over three decades of experience in the industry, he has become one of the most sought-after educators and speakers on the subject of trading. Velez is the best-selling author of 5 trading books and has trained thousands of traders worldwide through his various educational programs.
Tips for Online Traders
For starters, let us share with you some tips lifter from Velez's YouTube presentation titled 5 Tips That You Should Not Forget While Trading. Here is a list of the 3 biggest things that contribute to a trader's failure:
- Tip #1 Not limiting your loss to 1 bar
- Tip #2 Not trading in the direction of the 20 MA
- Tip #3 Not making your entries near or at the 20 MA
Gain confidence through experience
Experience comes with practice, and new traders should start small and gradually increase their trading activity as they gain confidence and skill. It's important to keep a trading journal to track progress, identify strengths and weaknesses, and learn from mistakes. We shall have this trading journal available as part of our regular updates.
Essential qualities
Discipline and patience are also essential qualities for successful day traders. It's important to have a well-defined trading plan and stick to it, even in the face of volatile markets or unexpected events. Emotions such as fear, greed, and impatience can lead to costly mistakes, so it's crucial to stay focused and disciplined.
Journey to Mastery: Exploring the Path to Expertise
In conclusion, mastering the art of day trading takes time, effort, and dedication. By building expertise and experience, we can increase our chances of success and achieve our financial goals.
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