 Hello, everyone, and welcome. This is Melissa Armo with the Stock Swoosh. And I wanted to go over a question that I get a lot, and I've been receiving this question more and more lately. A lot of people say, well, how much money do I need to trade your system? My system can be used for swing trading, active day trading, or trading options. So the only requirement is what the broker requires for you to open an options account or a day trading account or a swing trading account, if that's what you wanna do. So there are margin accounts and then there are cash accounts. All of these questions are things you can ask a broker. You can go to any broker that you want to. I always suggest checking out a few places, all right? So I wouldn't jump at the first place that you find, but there are many, many, many options out there for people to trade. So for example, when someone says to me, well, how much money do I need to trade? You need to look at what the broker requires to open the account. Then you have to take the amount of cash that you have, not buying power, real cash, okay? Follow me, show for example. Say you open up an account with 25,000 and you have a margin account and it's 41 and your buying power is 100,000 then, okay? You're not gonna look at that number to determine your risk. You're gonna look at the real cash that you have to determine your risk because that's the money that you have that you're using to turn over in a trade, okay? That's what you want to do. So the idea is if you risk $500, you want to make $500. This has nothing to do with margin. This is risk per trade. And what do I mean by that? I mean, if you take a trade, say, I call a trade zero by 50, okay? The risk is what, 50 cents. This isn't an active day trade, all right? 50 cents. You want to risk $500, you take 4,000 shares, that'd be $500. The cost of that on margin if you take an equity day trade will depend on the cost of the stock. So I never know what the stop is going to be. 50 cents, 20 cents a dollar. Very often it does have to do with the cost of the stock because cheaper stocks have smaller stocks and more expensive stocks tend to have larger stocks, okay? So anyway, it's getting back to the risk per trade. That's what you have to think about with the cash. So for example, show you open up an account with $5,000 at a proprietary day trading firm, which is an option, that's something you could do. You have $5,000 cash. You can't risk $2,000 in one trade. That'd be almost half your account. That'd be ridiculous. It'd be, you know, crazy, all right? So you need to look at your cash, not your margin to determine your risk per trade. And you also have to determine how many trades you wanna take per day. Now, this year, 2020, I've been calling a lot of options trades. I've been calling actually a lot of day trades. So it's been an active year of 2020. I would give yourself at least two, maybe three a day. All right, just to give you an idea. If you want to come and join the live training room or be in the options newsletter. Now, while I may not call three options trades every day, I might not call any options trades for two days and then call five one day, okay? Now, you don't have to do all five, but you could. The point is that your risk has to be with your cash account. And that's something you have to determine. So this year's been very, very active. Why? The opportunities are there. If I see it, if I see a good gap, boom. I never know until I get up in the morning or if I see something at night, if something's gonna be good or not. So that's just what it is. But I will tell you though, that when you are looking to do this, when you are looking to train, the most important thing is having a good strategy. That's number one, okay? You need money to take my class, money to sign up for the subscription services, and you need money for an account, all right? I suggest if you're new to trade on a demo account, which costs no money at all, and practice after the class first. So opening up an account should be secondary to learning it. I know a lot of people think it's the other way around, but really you have all the time in the world to trade and make money once you know what to do. Many people trade the market and have no clue what to do, and they lose the money they have. You don't wanna lose the money you have. You wanna learn what to do. She can take the amount of money you have, whatever that amount is, whether it's $2,000, $5,000, or 100 grand, and grow it, okay? This doesn't mean that every trade that I call works, but a high percentage of trades that I call work, way more trades that I call work than don't. So that is why you have to choose your risk. That's why we use stops, okay? And again, I go over all of this in the class. So to answer people's questions, you learn what to do first. You choose your risk per train. It should be consistent in every trade you take. I would give yourself a minimum of two per day, maybe three, okay, to start out with. It should be, your risk should be based on the size of your cash account, not your margin. If you have a margin account and how active you want to be. So if you would like more information, email me at melissa at thestopswish.com. Have a great day, everyone.