Suppose I do a cash advance on my credit card for $4,000. ($200 fee for doing it).
Then, I use Robinhood Gold and instantly deposit it.
Next, I use margin to buy $8,000 total of DWAC (about 140 shares).
This would make a hell of a day trade, right? Any thoughts? Maybe swing trade for a week, pay back, and keep profits?
Edit: I would have a stop-loss in place to hedge losing bigly, of course.
Update: Still watching, researching, and waiting for the right time to pounce. Focused on daily RSI and volume to gauge price action. Will post any results from a trade if it happens.
Thanks for your input. I know it's risky!
Yeah, it's a daunting thought to take a loss, but rhis stock has a huge potential upside.
I also plan to have a stop loss in place to sell if it dips past a certain price. I would sell the shares. Pay back the margin and credit advance plus eat the fees. One would have to be careful. Price fluctuates intraday by a few dollars.
This is exactly how I picture the scenario! I agree, don't lose more than your fun money.
Don't forget about the risk of an overnight gap down. Price could drop below your stop loss. The question is this. Can you handle a deeper than planned for lost on a loan? Emotionally it is not the same as a regular lost.
This is something you should plan for before taking on the risk. I know I would have a hard time with that.
Right. Robinhood gives you 5 daytrades until you get suspended for 30 days. It even has a little counter.
Robinhood requires at least 25k in your account to day trade. Otherwisearkets would be much more volatile than they are in theory.
Yes, but they give you 4 day trades every 5 days. Even has a counter to help you keep track.
It is not Robinhood. 25k for daytrading is by law. You are allowed 3 day trades within a 5 days period before your account is considered a day trader pattern account. (25k + account)
Nobody can day trade more than 3 times in 5 days by law unless you have more than 25k in your account. ( That is only equity accounts, you can day trade futures and forex all you want)
Do not do this.
It would be a white-knuckled ride for sure.
If this dropped down to 40 and was about to rebound like a motherfucker, then maybe. Right now? There's a lot of possible movement downwards and you would remove your capacity to hold for long term profit. Look at the graph and imagine if you had done what you suggest on Dec 2. Do not bet what you can't afford to lose, and certainly don't bet what you can't hold losses on for months.
I would be pissed, for sure. I may look at some premarkets or headlines before I make a move. I really want to find a 5% gain intraday somewhere. I like DWAC, but yes, it could move against me short-term.
If you haven't heard about it yet somehow, the Rumble merger CFVI might work for the necessary volatility day to day. Good luck and Godspeed.
I've been seeing some chatter online about this. I think you are correct. Also have noticed an end of day pullback, followed by an after hours and premarket spike.
Thanks. I wondered whether or not they would allow margin on it at Robinhood. Which broker were you using?
I'm listening. You make a valid and real argument of the cons. It's risky for sure.
You would be correct in your assumption, lol.
That's definitely sensible advice. Thanks.
I'd say after all we learned from GME, using Robin Hood is foolish.
Besides, this is more than a week play. This is long term success.
Also, if you don't have the extra money for the casino don't play.
Purple crayons are best.
Thanks for the advice. No doubt it's good long term, but I plan on using the volume for intraday scalping. A $4 swing would net 560 bucks intraday. $5 rise would be $700.
Pick the right time to do this. My suggestion for the right time would be sometime after you get the $4k without a loan. BTW at this point you cannot margin DWAC.
Why can't I buy it on margin?
Too volatile, the brokers do not want to take the risk you will not be able to cover.
I have silver, gold, because, eth, CRO stocks (many if which were supposed to do great things and tanked, but it's all money I had available and don't mind holding.
Precious metals are physical and permanent and will always retain value.
Crypto is volatile but trends upwards bigly. I like CRO because with their app, I opened an account where I buy 4000 worth of cro, lock it (stake) for 6 mo ths and get 10% ROI back in cro and the debit card will give me 3% cash back.
Cro has made huge leaps and is crytpo.com's baby. They just bought out the stadium rights for the Lakers and have been making moves so I feel good about it.
But again, it's money that isn't on a deadline, no margin, no loans, just stuff I'm willing to gamble with and hold if I have to.
Interesting stuff. Gonna read up on it. Thanks.
I'm bullish on cro, if you look at it's history, when a new exchange hosts it, finds a new higher floor. It was only released in 2018 and has finally found its footing.
Crypto.com is huge and as people get more into crypto, they'll naturally come across crypto.com because of how intuitive the domain name is.
Their bank account options are nice, the one where you buy 4k stake in cro and hold for 6 months is 10% roi and 3% cash back as well as free Netflix and Spotify subscriptions from what I see.
I just got the 4k stake today so I only started it but that's a genius way to get people to buy and not sell. Seems like a brilliant model to sustain growth. Hold and get perks and get rewarded in more coins.
If you want to increase your stake from 4k as you go and want to add more, your clock resets the 6 mo the and you get 10% back on the new amount.
If you want a referral we'll each get $25 but I'm not gonna push that. It's at around 60 cents a coin now. I used to buy bitcoin at $2.50 when I was using silk road we'll over a decade ago haha. Would be cool as hell to get in early on a newcomer.
No markets can stay stupid for a long time. If you have margin and credit debt,you will have to sell at a loss.
I've held gme,up and down several times,cause I don't owe any money. Amazon didn't make money for like 12 years.