As day traders we want to make our job as efficient as possible, in particular, can we make “making money” any easier? Yes, you can! This is where the powerful day trading tool known as margin and leverage come into play. Let me be very transparent and up front about this, you better have a valid strategy with rules and criteria before ever trying to use leverage. If you are a beginner day trader and just getting started in the stock market, and have no idea how to manage risk or protect yourself against the times you will be wrong about a stock’s price, then you should avoid this day trader tool (for the time being). However, if you do have a valid day trading strategy that manages risk and will allow you to “cut the loss” at the smart time, then margin and leverage are tools you should definitely be considering using. What exactly is margin and leverage and how do they work? How do they cause you to make “easy’ money”? Let me show you how these tools work together to allow you to make more money within your day trading strategy!

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