Quote from: JayJuanGee on September 18, 2018, 01:13:38 AM

"Going short" means using margin, right?

More or less, yes.

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Is there a way to still be a day trader without using margin?

It's not a sharp yes/no matter, using margin. What actually matters is the leverage. If you're positioned below 1:1 margin, you're actually not "using margin" as common sense understands it.

If, unrealistically, you went short at 1:10 (0.1x leverage), that would mean using nominal 10$ chips each actually worth just 1$. Leverage under 1x can be considered a "negative" money multiplier because the money amount gets shrunk rather than blown up.

What realistically happens most of the time is positive leverage, like 1.2:1, 2:1 or 5:1. (1.2x, 2x, 5x). Or even 100:1, for that matter. In the latter case, you play with 1$ chips actually worth 100$. Null leverage means 1:1, because it's the neutral muliplier: "no multiply, no margin".

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So, if you are trader that does NOT use margin, then that would be selling, right now. Either way (using margin to bet on down or selling right now), does not seem good to me. But what do I know? especially when it comes to profitably playing the dynamics of margin?

Using your play money to short with negative, null or slightly positive leverage can help you hedge your stash. You take a hit on your stash when the corn goes down, but you are rewarded on your play money if you cash out your short. A little sugar on the pill. A penny for your pain. I've been doing this a lot and I still am. Little bites here and there, but they do add up.

Of course, you have to let go of the short (probably using a stop loss order) if it begins losing too much. Hopefully, it will only be a dent in your overal profit made of little bites. The corn stole your last bite of play money profit, but that means your stash is growing in value again.

Once again, it's about finding a system that works for you. Setting your stops straight can help. At what price do I cash out? At what price do I give up and write the short off at a loss? By reserving major tweaking for special situations, you can get the luxury of carelessness, since you know your best and worst outcomes in advance.

Learn, rinse, repeat. Each learning session costs. Receivng lessons at bargain prices is quite valuable.