My story gets a Margin Call (MC) again, again, and again


This is a follow-up post from my previous post about "getting a Margin Call on forex trading."

Well, in this post I will continue my story where what happened to my account balance on the XM Ultra Low.

I will tell you even earlier where at the beginning I deposited around 50-55 USD (52, xx more precisely hihihi) where at that time I was able to expand it to 65-85 USD which was changing.

Well, here is the incident that made the Margin Call (MC) on that account. Here's the full chronology: (I don't use the chronological time).

1. Depositing funds to the account is approximately 52 USD.

2. In a few days I trade the account in a currency trading sometimes at the EUR/USD, GBP/USD, AUD/USD, etc with lots that vary sometimes 0.1, 0.5, or 1 lot (micro account).

3. In the following days I tried trading not only in the currency but moving direction to XAU/USD (gold) where at times it was successful and sometimes failed, but because at that time Gold was in a bullish trend like a rocket so I got a big profit especially from this pair.

4. With capital desperate also because I saw the opportunity, I tried trading on cryptocurrency where at that time BTC/USD and the result I got a decent profit from there.

5. With capital desperate again, then I tried trading in the index and the results could be profitable even though it had been floating minus quite a long time.

6. Well, here he is the scapegoat where I try to trade OIL. Well, trading is what makes me get an MC for the umpteenth time. Well, my reason for trading is that I see people who share profits on Facebook groups that make me interested even though I haven't studied or searched for the fundamental analysis of the pair and didn't pay attention to the security of the funds at all.

7. Finally the disaster is where I get a minus floating prize which is very high and with a minimum of 1 lot lot traded by OIL, then my fund's resilience is very narrow and finally I use a "hedging" technique that I haven't mastered before (for trading in US countries and on ECN brokers, hedging is usually not permitted, but at XM brokers that I use hedging is allowed).

8. The beginning of using the hedging I can get the results so that floating minus can be overcome along with the passage of time (btw just found out if swing trading on OIL is not subject to swap fees unlike trading in currency, crypto, or gold).

9. Furthermore, because I am confident with my hedging technique, as long as I dare use hedging, which is coupled with averaging. Yes, I did buy after several times at this OIL so that my funding resistance was small. Why did I do that? Because I see the news and fundamental analysis that Crude Oil (WTI) and Brent Oil will rise to the point of xxx, to strengthen again then I look at trading forums as well as many technical analysis if OIL will be bullish and very confident about it, reinforced again on the daily timeframe a "Bullish Engulfing" pattern has been formed with great confidence that I have averaged BUY several times even though my 'feeling' says that it will be Bearish at that time.

10. Well, because I saw the news and many traders in the market which believed that it would be bullish I finally accidentally deleted the Stop-loss (SL) that I made so sure if for example the correction of margin resistance would be strong.

11. But what is the power that happens, when I intentionally do not see trading in graphics and it turns out that Oil is Bearish with very deep floating, even until the next few days is still Bearish.

12. And finally I got the Margin Call (MC) again. :(

Well, from that case, then I realized that there were some things I had to learn from the margin call that I experienced (especially the margin call case). 

There are several important points that I took from this failure are:

  • It is useless if you use a small spread account if our prediction/trading is wrong, so we cannot profit, so the more important thing is to repair Win Rate trading first compared to looking for accounts that use small spreads.
  • Trading with lust does make a mistake where when using lots it is safe then the losses can also be minimized while using large lots is also a big risk.
  • Trading with small lots does not guarantee that our funds are safe, why? Because I trade with small lots but I do averaging, so I do the same lot. Although only averaging is not martingale, the effect is very pronounced.
  • Do not try to trade in the water that has not been mastered so that the pair could be a double-edged sword/boomerang. We do not yet know for certain about the volatility in the water so that we cannot calculate carefully the management of funds and profits.
  • Don't believe in news and fundamental analysis because it turns out that the market does not work as expected. (I thought if many traders ordered buy, so the chart will be bearish as well as vice versa if the majority of traders sell then the chart will be bullish.)
  • Don't trust other traders even though they are already Pro and Masters sometimes their trading fails too, so if trading is better follow our own instincts.

That's my story about the Margin Call that I experienced for the umpteenth time.

Well, what I believe is that all traders have experienced this, so I try to pour out what I experienced in this paper.

Where at the time of the MC there were some mistakes that the traders themselves made.

However, what makes me curious until when this article was made, is that in MT4/MT5 or c-Trader or Web Chart Trader is only influenced by the Trader?

'Where when many traders make BUY, the chart will change direction to Bearish, whereas if many traders take SELL actions then the chart will be bullish, so the majority of traders will be LOSS and the minority traders will PROFIT'.

Now that is still a mystery, but it is true that a minority of traders are successful, where most brokers write about 60-90% of the risk, the loss is indeed in accordance with what I think.

But according to the correct theory the forex chart is not only influenced by traders but there are many other actors that influence the motion of the graph, what are those?

Please read my previous article about "Who moves the charts in the Forex market? ."