Effective tips to Avoiding Margin call

Avoiding Margin call - Judging from the process, margin call occurs because the amount of loss of open positions that looms so if we close, we will run out of funds. Therefore draped broker because if left to his loss continued to grow and no one will bear the loss.

The biggest risk in trading is MARGIN CALL when the available margin to zero, then the system will automatically close the currently open transaction, and automatically we will have a pretty big loss.

Most (or all) forex traders have met with Mr. MC. We know her taste, really desperate. But the good news, if there are successful traders who have never felt it all?

They've all felt the MC, and they can be successful now. Means we were right on the same road with them. Go ahead, as long as we continue to walk (or crawl) a day must have arrived there. No matter how great our losses due to meet with Mr.MC, but how much we have achieved in the dreams of the future.

Margin call looks once you get down into the trading account a large negative balance. Once the margin down to zero, all open trades automatically closes. You automatically lose money.

You should know that the trader does not put stop losses are mostly traders who are not confident with his decision to open a position. Because traders are confident with what he chose, was well aware at the level where the choice was one that would limit the risk of error.

This time we will learn how to avoid a margin call. This discussion is important, very important, and more importantly you practice it. You'll never meet Mr. MC if you already understand how to avoid it. To avoid these risks we can use practical ways as follows:

- Trading only using max 5% of our income.
- Choose the currency pair is moving up and down it fast.
- Post positions 2 directions at the same time if we feel we are wrong to take the position.
- Avoid too little equity deposit.
- Concentrate on the market.
- Use of Risk and Money Management.
- Do not be greedy!
- Use the opportunity to always learn.

So to conclude, the margin call is a habit that does not want to limit losses. This means that the problem exists in private. So the solution to this is the willingness to change habits in a way always put stop loss or cut loss.

The beginner is often considered easier to trade forex so that no longer want to take the time to learn more. By continuing to study it more clearly will know the ins and outs of forex transactions. At a minimum, if you're reading and learn how to avoid a margin call, you will be more careful. Those who do not learn, have the opportunity to meet with Mr. MC is far greater than those who often learn to avoid it.

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