Margin
                       Review the examples in week 1.  You  must  understandthe rules and risks of margin before you begin trading.                       Don’t  buy  it  on  margin  if  you  don’t  have  theallocated cash reserve to pay for it in cash.  Day  trading  has  less  riskusing margin then taking home a position overnight but a stock can and  willagain stop trading during  the  trading  day  due  to  news.  You  can  findyourself in the same situation as the NEON trader that took it  home  at  44and saw it open at 18 3/8 the next day.                       Short selling is extremely  dangerous.  If  you  haveenough capital to pay for it in cash when you use margin the stock can  onlygo to zero, but what about a short sale? Lets say the  stock  stops  tradingduring market hours, with news pending because of a takeover. The price  canbe way beyond your margin reserve and now what will you do? A long can  onlygo to zero but a short is unlimited to the upside. It  does  happen,  so  beaware of the kind of stocks you short and don’t  ever  take  a  naked  shorthome overnight. Buy a put if you think stock is a short.