A lot of people get margin calls on speculation, right?
When you receive a Margin Call prompted by the system, it means that you need to Call back the Margin.
If you ignore this prompt, you will face forced liquidation, that is, burst.
If it were you, would you choose to renew or burst the stock?
Livermore, the king of speculation, once said, “If you get Margin calls, it means you’re on the wrong side.
Why invest more money after you make a mistake?
Save your money for the next opportunity.”
I wonder if when you look at this sentence from this perspective, you will change your original thinking.
Many people are inexplicably confident, want to prove themselves, and are unwilling to admit mistakes.
It could be worse than a bust.
A margin call does not mean there is no money in the account, but the money in the account will soon fall below the minimum margin required by the platform.
Minimum margin requirements will vary across platforms and they will also set reminders for different capital levels.
Some platforms may remind when the funds are relatively high, and some platforms directly wear positions without reminding.
Losses are the direct cause of margin calls by traders.
However, it is hard to avoid losses.
The real culprits include failure to admit mistakes and stop losses quickly, excessive leverage, failure to set up stops, and heavy positions with small amounts of money in their own accounts.
So if you want to avoid margin calls, first of all, you have to have an attitude not to fight the market.
Everyone makes mistakes, but admitting them is a difficult problem that many people need to overcome.
And then look at leverage.
Leverage is a killer.
We must consider both sides of leverage and not advise ordinary people to use too much leverage.
According to the principle of risk management of capital, the capital of the transaction shall not exceed 2% of the amount of the account, and the leverage and the number of trading hands shall be reasonably coordinated to control the capital of the transaction.
Therefore, in addition to the minimum payment requirements of the platform, it is usually recommended to top up 300-500 at a time, standard accounts and 0.01 lots at a time.
Be sure to start with a maximum deposit of $1,000 and try not to make margin calls for a year.
Finally, we should pay attention to stop loss.
Whether it is real-time trading or limit trading, stop loss is a death safety line.
When setting your stop loss, you should also leave yourself plenty of room to trade, as long as you don’t lose too much.
If you can’t set a stop loss, you can learn about support and resistance levels.
As Europe’s energy crisis intensifies supply constraints, oil prices have enjoyed a third straight pre-Christmas rally and gold has held steady.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
