{"id":235,"date":"2014-11-11T23:31:00","date_gmt":"2014-11-11T23:31:00","guid":{"rendered":"https:\/\/learnfxtrading.net\/app\/app\/?p=235"},"modified":"2014-11-11T23:31:00","modified_gmt":"2014-11-11T23:31:00","slug":"margin-call","status":"publish","type":"post","link":"https:\/\/learnfxtrading.net\/app\/margin-call\/","title":{"rendered":"HOW TO PREVENT MARGIN CALL"},"content":{"rendered":"<p style=\"text-align: left;\"><span style=\"text-decoration: underline;\">Prevent margin call, know the costs<\/span><\/p>\n<p style=\"text-align: justify;\"><strong>Margin call:<\/strong> When your trading account has no enough funds to support or sustain the current open losing positions, the account automatically shuts down \u00a0irrespective of how much balance you have.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">How much do you spend per trade? I would not be surprised if there is a trader reading this post and cannot answer this simple question. Believe me when I say I was once that trader, so I understand, or shall I slang it \u201cI feel you\u201d. I am once again here sharing my not so good <strong>Forex<\/strong> trading experience. Learning to trade was a long rocky journey full of highs and very aching lows, not to mention costly. Those who really know me understand exactly what I mean by aching lows. Through it all \u00a0I learned valuable lessons that I was never taught or made aware of during my own <strong>Forex trading<\/strong> training. I use this blog as a platform to share with fellow traders and those who are just about to get started.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">This is just me trying to spread the word out there and to help you find that missing pieces of the puzzle in your own Forex trading journey, out of my personal experiences, mostly bad ones. Since this industry is highly bombarded with false and exaggerated information all over the net, it is really hard to find real people who speak openly and truthfully about this subject, I thought I should be that person and just tell it as it is. It seems like most <strong>Forex traders<\/strong> who speak about it have their own agendas (topic for another day), the purpose of this blog is NOT to give financial advice or whatsoever as I have already mentioned, it is personal, but if you can relate or find it relevant, then <em>great<\/em>!! You can keep on reading or following my posts.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><em>&#8220;The key to winning is not inside of your computer, but inside of your head&#8221; ~ Elder Alexander.<\/em><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong>Forex trading<\/strong> can deceptively appear as the easiest thing ever, but it is not. One has to be a realist and know his\/her abilities and limitations when it comes to this business, it is not for the lazy minded, though it is mostly portrayed that way. One of the most painful things a trader \u00a0can experience is when the account is wiped out of the market or when you blow your own account out. Majority of<strong> Forex<\/strong> traders have had this unpleasant experience that does not only leave you shocked but extremely ashamed and embarrassed but guess what? they never share or tell, only beautiful stories are shared on social media, they even lie about having only\u00a0 gains on their accounts. Every <strong>Forex trader<\/strong> even the most experienced ones at some point have a losing trade from time to time, we all do. It is never 100%, so do not believe this biggest lie Ok, \u00a0no business is 100% risk free anyway.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"text-decoration: underline; color: #800000;\">Biggest mistakes traders make<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">Having live trading account but still not having a clue of how much you spend per trade. That is one of the biggest mistakes that I made, knowing all the other details in my platform, like the balance (which is really not that important now that I am well-informed) neglecting what I now think is the most important part, your <strong>Margin and Free margin.\u00a0<\/strong>Below are some of the questions you should ask yourself:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #000000;\">Would you really run a business e.g. clothing company, but you simply do not know how much you spend for your fabrics and other staff in your business?<\/span><\/li>\n<li><span style=\"color: #000000;\">Would you blindly bank your profits\u00a0 and not even bother to check how much is left for you to buy more stock, my point is, do unto your live <strong>Forex<\/strong> account as you would do to your clothing shop or any other business.<\/span><\/li>\n<li><span style=\"color: #000000;\">It doesn&#8217;t help knowing how to utilize features like \u00a0<a href=\"https:\/\/learnfxtrading.net\/app\/app\/forex-trading-terminology\/\" target=\"_blank\" rel=\"noopener noreferrer\">stop \u00a0and take profit<\/a> \u00a0while you do not even know how much you are spending for your open trades. Do I make sense? (how I wish I could emphasize this in my own language), no matter how good your trading strategy is, if money is not well-managed, you are playing a losing game, I am deeply sorry to be the one telling you this, but I know now and \u00a0I also wish someone had told me earlier.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"text-decoration: underline; color: #800000;\">Where to start?<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #000000;\">Do as you would do in any other business (have a plan)<\/span><\/li>\n<li><span style=\"color: #000000;\">Know how much you have (Equity)<\/span><\/li>\n<li><span style=\"color: #000000;\">Pay attention to your <\/span><strong><span style=\"color: #000000;\">margin and free margin\u00a0<\/span><\/strong><span style=\"color: #000000;\">and the best way that worked for me was knowing in terms of dollars. Knowing the jargon is good but not knowing what it means in terms of dollars is just as bad, I personally do this because I treat my <strong>Forex<\/strong> account as I would treat any other business.<\/span><\/li>\n<li><span style=\"color: #000000;\">Know exactly\u00a0 how much is left, that can still be used should\u00a0 you\u00a0 wish to open more positions, don&#8217;t just look at the balance because you might think the market is playing tricks on you when it put you on<strong> <a href=\"https:\/\/learnfxtrading.net\/app\/app\/forex-trading-terminology\/\" target=\"_blank\" rel=\"noopener noreferrer\">margin call <\/a><\/strong>and\u00a0 kick you out while your balance looks OK, so do not let this to happen to you (if it hasn&#8217;t happened already), now I smile as I remember how I cried when it happened to me and i wasn&#8217;t even sure what was happening at the time.<\/span><\/li>\n<li><span style=\"color: #000000;\">Another one that is overlooked by many traders\u00a0is excellent internet connection, believe me, internet is your main tool in <strong>Forex<\/strong> trading, you cannot really do anything without good connection, market does not care if your internet is slow, if you have live trades, be sure you have good internet connection especially if you are scalping the market. I hope my mishap does help you in making \u00a0good decisions.<\/span><\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #000000;\">Lastly, be very careful of this type of adverts that pops up everywhere in the net, they normally go\u00a0 like: &#8220;<\/span><em><span style=\"color: #000000;\">I MADE $$$ (usually showing big amount like $3000) IN \u00a030 MINUTES!! &#8221; <\/span><\/em><span style=\"color: #000000;\">please before you jump in and do something drastic, take a deep breath and ask yourself this one question:<\/span> <span style=\"color: #000000;\">How much was the person trading with? be alert and \u00a0smart, I have already gone through margin call and you don&#8217;t have to go through it, learn from my \u00a0mistakes, it is OK to learn from other people&#8217;s mistakes, thank you for stopping by.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Prevent margin call, know the costs Margin call: When your trading account has no enough funds to support or sustain the current open losing positions, the account automatically shuts down \u00a0irrespective of how much balance you have. How much do you spend per trade? I would not be surprised if there is a trader reading [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"footnotes":"","_jetpack_memberships_contains_paid_content":false,"jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[6,7],"tags":[],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pbXWFt-3N","_links":{"self":[{"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/posts\/235"}],"collection":[{"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/comments?post=235"}],"version-history":[{"count":0,"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/posts\/235\/revisions"}],"wp:attachment":[{"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/media?parent=235"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/categories?post=235"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/tags?post=235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}