The reason why get Margin Call several times in forex trading

get Margin Call forex
Margin Call? Have you ever got it?
Hello friends? After a few days, I vacuum writing stories on this blog. Finally, I also had the chance to write cool stories about forex trading that I did. hahaha

There is an interesting thing that makes me eager to tell this blog, where I get a Margin Call, or commonly called an MC, aka spelled eM-Si. hehe

In my own opinion, MC or Margin Call is a condition where a trader gets a loss, where the loss spent all the balance in the trading account.

Actually, for professional traders and beginners, MC is rarely the case if traders pay attention to good Money Management.

Because I am also a beginner in trading, the MC has become a meal, actually; I know the reason I got the MC, but the mistakes that make me the MC is very difficult to eliminate because we relate it to lust.

Lust or greedy terminology is already human nature, huh? So it's very difficult to remove.

Frequently, I was hit by a Margin Call, basically because of several things including:

  1. Poor Money Management
  2. Do not place a Stop Loss
  3. Disrupted trading psychology

avoid margin call on trade
Margin Call regarded as one enemy of the trader that must avoid
Well, more or less only these three things that made me hit by Margin Call several times.

Btw, for a margin call that I experienced it happened at several brokers. The reason I tried several brokers, other than because I wanted to know the trading conditions, also to review the broker who would later post on this blog.

I have tried to live accounts on several brokers from MM, STP, or ECN brokers, for those who have never tried DMA because the deposit usually has to be very large .. :)

Back to the discussion! Now, of the three things that made me get a Margin Call I will describe one by one below:

  • Poor Money Management

The first is about Money Management if a trader who has a lot of capital and opens a position with only 0.01 lot is very unlikely to exposed to MC because of high margin resistance.

This money management is an important factor to avoid getting hit by MC. The story is that I often get hit by MC because I don't pay attention to Money Management, where I risk over 20% of my account balance.

Even when I exposed to MC. I would bet all balances for only one open position. So, I do not follow what I do. :)

So basically, if you leave the name Money Management is tantamount to gambling. Why do I call gambling? Because I experienced it myself where there are only two choices between Poor or Rich.

Even if I pay attention to a good MM, the MC can avoid because I got an MC not because it was against the Trend, but because of a bad MM where the MC is at a price correction. Too bad right.

Well, it's honest to me that although I already know that bad MM is harmful but until now it has been very difficult to implement a good MM.

What makes me surprised, when the position of small lots is often very profitable, but when trying large lots immediately lose and even MC. :(

  • Do not place a Stop Loss (SL)

This one is actually not very important, where Stop Loss or SL included in money management science.

Believe me, if we use a good MM and really we calculate how many pips of our endurance, then not putting SL is not really a problem.

Well, the incident when I got the MC several times happened because of trivial reasons, where when I used a big lot, I was too lustful and ignored the resilience of the margin and did not place SL.

Even when I installed my SL exposed to MC too, how come?
Yes, because the SL that I have installed I change, if the price almost hit by the SL I keep the SL at a time (this is a habit that I often do if I see the screen of my laptop/cell phone continuously)

  • Disrupted trading psychology

Well, here is the heart of the Margin Call problem that I experienced where it all started from my trading psychology which disrupted. Honestly for me, in trading, this is the most difficult thing to implement.

Technical Analysis, Fundamental, Market Sentiment or Intermarket? Ok, fine.

Applying Trading Management when OP? Ok fine.

But it was a turn in practice. The psychology collapsed. That was what I experienced most often. Examples of events such as:

One time I have analyzed technically, strengthened fundamentals, and also some shares from traders which we all agree with.

Because they felt it that the price would it fix the price, my psychology disturbed because I was very confident that I could not control MM and dared to use large lots.

Ok if it's profit, but bad luck if what happens is Margin Call.
Trading psychology, one of the important aspects of trading
Trading psychology, one of the important aspects of trading

Another example of trading psychology disrupted if after the OP then the price experiences a retrace (correction).

This also sometimes disturbs where the correction is up to or even will change the direction of the Trend.

Because no one knows the forex chart for certain, sometimes our psychology is often disturbed whether we will CutLoss, or do hedging, or even change SL.

Well, once I had a hard time doing CL and SL. where psychology disrupted so I move through the SL line and finally, the SL deleted when and there is an MC.

The psychology of SL honestly disturbed because sometimes I often go to SL, and after being hit by SL, the price goes fast to the TP, this is the reason that makes my psychology disturbed. Even these habits often occur.

Another example when psychology starts error is when open positions and prices do not match what we analyze, we do not dare to do CL and sometimes in my heart revolt was sometimes a sense of "resignation" which in the heart appears to be desperate and resigned.

The surrender in question is the emergence of a desire to give up the MC, wherein the day words of wisdom will emerge including:

"Never mind, when I got Margin call, I will deposit sometime again"

"Just surrender, almost already Margin call, but hopefully the price will turn around"

"Just reckless, if for example hit by Margin call means it's not my fortune today"

Well, that's a few words of wisdom that made me the MC, which all started because of psychological. It is very difficult for traders if it disrupts psychology.

Btw, those are some things that made me exposed to MC. Honestly, even though I already know the main problem that makes me the MC, but in its implementation, I rarely have a firm stand which often shaken and repeats the same mistakes many times.

Ok, that's all for my story today. Thank you for reading this useless post ... hehe, maybe you who read this post also experienced the same thing as me? xD.

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