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How to obtain investment capital for trading in the stock market?


Been trading for 5 years. Had to buy a new car and pay for tuition, therefore a majority of my capital I had to use, I didn't have a choice. Ideas for raising/borrowing more capital?

You say you've been trading for five years? I assume you've been trading full capital/fully funded positions?

You can be creative about raising and borrowing more capital by using leveraged financial instruments.

Some of these instruments expose you to the security proce movements while only having to put only 1% or 10% collateral down. Of course, increased leverage means increased risk and increased profits or losses.

Depending on where you are in the world, some of these are not legal: say CFDs are not legal in USA but legal in Australia and UK. Options are an alternative for this instrument in the USA. There are also warrants and forex - foreign exchange (forex). Forex allows you to put only 1% down collateral.

I would stay away from margin loans as I feel they are riskier than the aforementioned devices.

Catch22, nobody is going to stake you to a trading account unless you have proven your worth.

Try to get a job with a brokerage firm and then through good work and advancement try to get a job on a trading desk, maybe as an assistant. Eventually if you have the aptitude for it you might become a trader. If you can make good money doing that you can go out on your own.

good luck, hard business

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