Into the Red: How Trading Accounts Go Below Zero!
Swing Trading the Stock Market
Ryan Mallory
4.7 • 828 Ratings
🗓️ 18 August 2023
⏱️ 15 minutes
🧾️ Download transcript
Summary
Ever wondered how a trading account could slip below zero, plunging into a negative balance, where you end up owing the brokerage money? It's a harrowing scenario many traders often overlook. In this episode, I break down the four different pathways to this alarming scenario and cautionary tales to arm you with the knowledge to navigate the treacherous terrains of trading.
Be sure to check out my Swing-Trading offering through SharePlanner that goes hand-in-hand with my podcast, offering all of the research, charts and technical analysis on the stock market and individual stocks, not to mention my personal watch-lists, reviews and regular updates on the most popular stocks, including the all-important big tech stocks. Check it out now at: https://www.shareplanner.com/premium-plans
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*Disclaimer: Ryan Mallory is not a financial adviser and this podcast is for entertainment purposes only. Consult your financial adviser before making any decisions.
Transcript
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| 0:00.0 | Using my Berkeley Card Forward Credit Card to pay for the stuff I need now |
| 0:03.2 | could help build up my credit school for the day I need something bigger. |
| 0:06.5 | So buying a set of headphones, or waits for my workout, smashed it. |
| 0:11.4 | Could help in the future when I want to rent my first flat share. |
| 0:15.4 | Now that's forward thinking. Check if you're eligible at barclaycard.cote. |
| 0:20.4 | 33.9% APR representative variables subject to application financial circumstances in borrowing history, T's and Cs apply. |
| 0:26.6 | Responsible use of a credit card can help build your credit score when you pay on time. |
| 0:29.6 | Hey, I'm Ryan Mallory and this is my Swing Trading, the Stock Market podcast. |
| 0:41.4 | I'm here to teach you how to trade in a complex, ever-changing world of finance. |
| 0:46.0 | Learn what it means to trade profitably and consistently, managing risk, avoiding the pitfalls of |
| 0:51.7 | trading, and most importantly to let those winners run wild. |
| 0:55.5 | You can succeed at the stock market, and I'm ready to show you how. |
| 0:59.9 | Hey, everybody. This is Ryan Mallory with Swing Trading the Stock Market, and today we're going |
| 1:03.9 | to talk about whether or not you can lose more money than what you put in the stock market. |
| 1:08.6 | It's like you put $100 into the stock market, and you all of a sudden find out that you've lost $200 in the stock market. It's like you put $100 into the stock market |
| 1:11.0 | and you all of a sudden find out that you've lost $200 in the stock market. |
| 1:15.1 | Is that possible? |
| 1:16.4 | And if so, what's the things that will cause you to lose that kind of money |
| 1:20.5 | and what's the best way to avoid those kinds of scenarios |
| 1:23.9 | where you're actually losing more than the money that you put into the market. Now, granted, we don't want to just put money into the stock market for us to lose all of it. |
| 1:30.7 | I mean, I don't want that either, but I definitely don't want to lose more money than what I actually put in it. |
| 1:35.9 | And there is scenarios that that can happen. |
... |
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