Avoiding Margin Calls

Avoiding Margin Calls

Every trader has terms, margins, or often abbreviated as MC. Margin calls are a warning from the broker that funds are almost swallowed by market movements. Usually margin calls are often experienced by traders, and I’m sure professional traders often experience it.

The importance of financial management

So if you are still trading business and want to succeed, find the cause.

The cause of margin is a trivial thing, namely financial management. Without realizing it you often do it. Or worse, you have noticed, but you ignore it. Yes, the term money management is very important to survive and succeed in this business. Most arrogant and have the ability to convert market movements with the system.

Forex traders with confidence.

Forex traders with confidence
Forex traders with confidence

Professional forex traders have little difference with amateur traders, namely management capabilities. This difference is very trivial, but shows different results. Professional forex traders will plan and manage their financial flows, because traders will trade.

Amateur Forex Traders.

Unlike amateur forex traders. Their blindness to results is fast and in a short time, they forget the condition of their capital. Yes, because their purpose is only one, namely to get high profits in a short time. But what is the market situation that is contrary to their analysis? Yes, the margin call answers. Do you often experience this? Can we call you a gambler?

Don’t gamble in forex trading.

forex trading
Don’t gamble in forex trading

We consider money management as a management of expenditure cash flows on companies. Good financial management does not spend money beyond the ability of capital.

When a professional company will shop or supply goods, they have a rule. They will not spend all of their money on items that are not necessarily marketable.

Make sure you manage your finances well.

Like companies, traders also have the same task, which is managing finances well. If you have a capital of $ 100, then you can only make transactions up to 3% to 5% of your capital, and should not be more than that. This will make you comfortable and your psychology will not be disturbed when you lose.

Margin calls are very easy to avoid, namely by managing sound money management, as well as good risks and reward ratios.

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