Flight asked in Business & FinanceInvesting · 1 decade ago

Can I fund online stock trading with a credit card?

Is it possible to trade stocks online using credit, with no actual capital?

17 Answers

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  • 1 decade ago
    Best Answer

    In the beginning “newbie” traders and investors DO NOT INVEST THE FIRST cent or dollar. No amount of money.

    In the beginning you LEARN HOW:

    A] the stock market works.

    B] to invest in many, many various ways.

    C] to properly trade

    D] many other concepts and aspects.

    Beginning or novice ['newbies"] investors and traders ALWAYS make mistakes. In fact, throughout a person's avocation or hobby to do trading, he/she will make mistakes.

    In the very beginning, you READ AND LEARN about the market and how it works:

    Read "Investing for Dummies"

    As you are reading and doing research about the investments you are interested in, sometimes you'll come across a financial or investment term you never heard before.

    You can usually find excellent, easy-to-understand definitions of many financial and investment terms by going to Investopedia’s dictionary.

    http://investopedia.com is a free site. It’s recognized by Y! A as a "Featured Knowledge Partner".

    It probably won’t be long when you’ll feel you’re ready to invest your hard-earned money. Before taking that step, you really should do research about what you are investing in. It also has a free, paper trading platform. You can set up a virtual account and almost trade as though you were trading with real money.

    http://finance.yahoo.com is also recognized by Y! A as a "Featured Knowledge Partner"

    END E-MAIL #1

    The thought processes are:

    1] to have more successful trades than failing trades.

    2] to minimize the losses of those losing trades.

    3] "To live to trade another day." Having enough money in the trading account to return to the market.

    ALL this is accomplished by a few true expressions used on Wall Street:

    Some trading expressions come to mind:

    A] "On Wall Street there aren't any gifts."

    No one gives anyone else anything - not even stock tips.

    B] BUlls [BUyers] earn money.

    BEars [SEllers] earn money.

    Pigs get fat.

    Hogs [Greedy Traders] get slaughtered. They lose the money in their trading accounts.

    C] "Trees don't grow to Heaven. Neither do stocks or any other investments."

    In other words: What goes up, MUST come down!

    D] "Plan your trade. THEN trade your plan!"

    Have a trading plan with rules for that plan for each strategy.

    I want everyone to know I DO NOT own any portion of this man’s estate, nor am I associated with him or any one else connected with him in any way. I am not part of the publishing company or an agent or anything else. This man does not know me from Adam AND I don’t know him. I know of him and the wonderful book he wrote. THIS IS NOT SPAM.

    You should buy a copy of this book:

    “The Richest Man in Babylon” by George S. Classon. You can get the book on http://amazon.com

    Its very easy to read. Its very easy to follow. You can write in it. You can make notes in it. All you have to do is to read five [5] pages - Let’s count

    1 - 2 - 3 - 4 - 5 pages of this book - or any book - each and every day.

    OR You can leave it sit on the shelf, on a table or on the floor and let it collect dust.

    Thanks for asking your Q! I enjoyed answering it!

    VTY,

    Ron Berue

    Yes, that is my real last name!

    Source(s): My wonderful family! My wonderful coaches and mentors! TWO [2] of THE ABSOLUTE BEST, MOST wonderful trading groups in the world, which I am most proud to be a member of! Trading stocks and options more than 2 years. "THE University of Hard Knocks"
  • Anonymous
    3 years ago

    1

    Source(s): Ultimate Guide to Penny Stocks http://teres.info/TheTradingCode
  • Anonymous
    3 years ago

    2

    Source(s): Binary Option Alerts http://netint.info/AdvancedTradingTechnology
  • 6 years ago

    I know this is and Old post, but this can be done. I was just wanting to see if anyone else tried this as I had done many years ago. I did this back In the 2000 2003 years. Most credit card companies will send you checks to use for whatever purpose. The available cash limit can be used for this purpose of trading. The problem I see with doing this today is the borrowing percentage is not like it use to be. I had used 4 credit cards this way and had some sizeable trading capital to start with. The rate of borrowing this money was 0 percent for 6 months and 8 months, after that you normal rate would apply, and you could not miss a payment or it would go up. Today's rates are different as well as the transfer fees. So you had better be making a good percentage every month. Before you I even borrowed this money I had the money to pay it back, so for a novice to do this would be suicide if they trade like they play cards. I was using the concept of OPM and using my other money for something else. It worked for me but, you had better way all the things that can happen to you when doing this. If you have no fear and can eat lead for breakfast go for it.

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  • 4 years ago

    Penny stocks don’t cost much money and promise big profits. But trading penny stocks is also a good way to lose money.

    Sure, it’s possible to profit when you understand the game. Learn here https://tr.im/tradepennystocks

    For investors who can’t afford shares of Google or Apple, the potential gains from trades like this are too good to pass up. So penny-stock trading thrives. With a relatively small investment you can make a nice return if the trade works out.

  • 1 decade ago

    You nor anyone else can do trading (on line or not) with a credit card.

    The use of credit in this country is under the rules & regulations of the Federal Reserve Board (not the SEC).

    All banks & brokers must follow these rules & regs.

    The use of a credit card let's the buyer purchase without the use of money, the Fed's rule state that this can not be done.

    All security purchases must be paid in full on or before the settlement date of the transactions, or under the rules of margin, the customer must deposit 50% of the pruchase price and have initial minimum equity in the account of $2000

    Bases on these rules - NO ONE CAN USE A CREDIT CARD

    Source(s): Experience
  • 1 decade ago

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  • 1 decade ago

    I haven't really keep up with SEC/ Exchange rules, but it used to be illegal to purchase stock with borrowed money. If you told your broker you had borrowed money, the broker, according to the rules could not accept the trade. It went on because the broker never asked where the money came from.. chuckle.

    BUT funding with a credit card would automatically make it borrowed money. I will bet you can not.

    ALSO if you are borrowing money to fund a stock account that is a very bad idea.

  • Marcia
    Lv 4
    4 years ago

    In binary options you will have the possibility to predict the movement of various assets such as stocks, currency pairs, commodities and indices. Learn how you can make money trading binary options https://tinyurl.im/aH4zc An option has only two outcomes (hence the name "binary" options). This is because the value of an asset can only go up or down during a given time frame. Your task will be to predict if the value of an asset with either go up or down during a certain amount of time.

  • 4 years ago

    For the best answers, search on this site https://smarturl.im/aD29v

    In the USA one cannot buy stocks with a credit card per se. One can write one of those cash advance checks, but that will cost a lot in terms of advance fees and interest. I would not advise that.

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