 Boom! What's up, my name is Giggs, Mr. V here, welcome to another video, guys. So in today's video, we are going to talk about account types. So we started this series, we talked about choosing the right platform, the right broker to be able to day trade or even do some string trading. So we covered that. So the next step is once you've decided which broker you wanna go with, what account type should you open because you have the option of opening a cash account or a margin account. So which one should you choose? So that's what we're gonna cover into this video. But before we get started, guys, if you're new to the channel, we talk about how to earn money, how to save money, how to invest and build wealth. So if that's something that interests you, go ahead and hit that subscribe button and the notification bell so you don't miss out on new content. Again, guys, I did a video talking about how to choose the right platform or the right broker for day trading or string trading or just investing. So if you didn't watch that video, I'm gonna hook it up here so you can definitely go check it out. Today, now that you have the broker, now which account type should you open? So again, in Weibo, and that's the platform I'm gonna use here as an example. So I want you to do some research on the platform that you, of choice that you have if it's not Weibo. My example here is specifically send it around Weibo. So just upon the caution there. So in Weibo, when you open an account, you have the option of deciding if you want a cash account or a margin account. And I'm gonna explain the two accounts of the differences and which one is better based on your situation. So we're gonna talk about that. But before I even jump into that, again, I want you to go to Investopedia. So right here, just read what a margin account is because I want you to have that context. Read and understand what a margin account is, how it works. I'm gonna explain it, I want you to also read it and get that in-depth knowledge. Also read what a cash account is. Read what it does and how it works. Just that way, you are not just hearing from me but also getting some other perspective. But the bottom line is that cash account, a margin account gives you two different opportunities in the market depending on your specific trading style or what you're looking to accomplish. Again, guys, like I said, my focus is gonna be on Weibo. So I'm using the Weibo platform for day trading. So if you are using Weibo, then this is gonna go straight. You don't have to do any more research. But if you're doing some other platforms, I want you to research those platforms and make sure that you understand the options that they provide as far as the cash account and the margin account. So again, on the Weibo platform, as you open your account, it says cash or margin. So here's the basics and I always try to tell people, if you have under $25,000, my personal opinion, I would say open a cash account. And the reason why you open the cash account for under $25,000 to trade is because with the cash account, you get unlimited trade. But there is a little catch here. The catch here is that once you trade, your money has to settle. It takes two business days for the money to settle before you can use it. And I've talked about this here on the channel and I'm gonna still bring this up again. Once you have under $25,000, let's just say you have $3,000, that's your budget to start trading with. So you can split that up into two parts. So it's a mental split because I've actually had people ask me, you're like, hey, where do I split the money and put it? Like you don't split it and put it somewhere. It stays in your account. You see $3,000 as you're buying power but you mentally split it and say, hey, every day I'm gonna trade with $1,500. So that way, every single day you have $1,500 to trade on your bill, your account until you get over $25,000. Then you can convert that account to a margin account. So that would be my personal take. So if you have over $25,000, then you definitely want a margin account because with a margin account with over $25,000, you get unlimited trades. So you can trade as much as you want. But if you have a margin account with under $25,000, and again, I'm gonna stress this out. If you have a margin account with under $25,000, you get three day trade and the five business day cycle. So it means that you can buy a stock and sell it, buy another stock and sell it, and buy another stock and sell it. So you use your three day trade. If you do that in one day, you use a three day trade, it's you have to wait five business days for that to recycle before you can get another three day trade. And I don't think anybody that wants day trade, you wanna be in that situation where you see opportunities you can't trade because you don't have your day trades left. You've used them all. So that's why I would push you towards a cash account so that you can trade continuously. Again, but you have to do that mental split of splitting your budget or your buying power into half so that you can use one today and then use the other one tomorrow. And by the time you get to the other, you get to two days later, what you saw today has already settled and you can use that. But the other thing that you can do and again, which I'm gonna cover here in this series is if you trade options, your money settles the very next day. So that's something that you wanna consider. And I'm gonna cover my strategy for trading options here because that's something that I've actually added to my whole suite of tools that I use for making my two 50 a day. So option is one of the, and I'm gonna share that with you guys here on the channel. So now that you have decided that, hey, you wanna cash account based on the amount of money that you have, then you can go ahead and open that cash account. But if you decide you wanna go with a margin account, the advantages of having a margin account is that you can actually leverage margin. So when you have a margin account, you would see that you have two buying powers. You have your day trade buying power and then you have your overnight buying power. And so if you have an overnight buying power, you probably see, let's say you have $25,000 in your account, you will see that your day trade buying power would probably be like maybe $50,000. That's double for your margin. And then your overnight would probably like 40 or 35. So they give you, it depends again on the particular stock. Some stocks have different leverages that you can have. Some are two X, some are three X, some are just one X. So you definitely wanna do some research to understand that. And again guys, using leverage simply means that you're borrowing money to buy stocks to pay with interest. And again, if you buy that stock and hold it and the price drops, you might be in trouble if you sell it at that point. So basically leverage means that you're borrowing money to buy stocks, which in my opinion, unless you really understand what you're doing and you see a very, very great opportunity, I would discourage you from doing that. But again, I've seen a lot of people use leverage smartly and make a lot of money. So do some research and make sure that you understand before you jump into using margin. Again, if you have a margin account. So that's what I wanted to cover in this video guys. And again, let me do a quick recap here. This particular video, again, it's a continuation. We talked about you choosing the right platform. When you choose the right platform, the next step is for you to open your account. And what kind of account would you open? It could either be a cash account or a margin account. And again, if you have under $25,000, my suggestion is that you open a cash account. If you have over $25,000, then you open a margin account. And the reason is because with under $25,000 with a margin account, you only get three day trade and a five business day cycle. So it limits your ability to trade. But with the cash account, if you have under $25,000, you have unlimited trade. But you have to wait for your money to settle. And I told you guys that there's a walk around that you could do there. So you walk around by splitting your money into two and using part of it today and then part of it tomorrow and then give tomorrow would be the day that the money that you use today will settle so you can use it the day after. So I hope that's kind of helpful. So that's what I wanted to cover into this video. Again, let me know in the comment section what you guys think. What kind of account do you currently have if you already are trading? Do you have a cash account? Do you have a margin account? Do you leverage margin in your margin account if you do have a margin account? Again, let me know in the comment section and I'm gonna continue to put this series out or put all these basics out all the way to the indicators, setting up everything. And then I'll take an example and walk through and do a really long video with everything as a package so that way you can have that recap to go through and watch again. So that's what I wanted to share into this video. If you're new to the channel, guys, we talk about how to earn money, how to save money, how to invest and build wealth. So if there's something that interests you, go ahead and hit that subscribe button and the notification bell too, you don't miss out on new content. Also, if you're looking to get started with investing, we will have the promotion right now where if you sign up and deposit $5, you get some free stocks at no cost to you. I'll put the links in the description below and as always, guys, do your due diligence. Don't be greedy savage. Stay motivated. I'll see you guys next time. Bye.