How to do dea with margin call in Forex Market.
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Thread: How to do dea with margin call in Forex Market.

  1. #1
    Registered user Hukam's Avatar
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    How to do dea with margin call in Forex Market.

    Getting a margin call is not a joke at all. It's very frustrating and unexpected experience for a trader. Many time a trader not able to make consistent profit in forex and they always get the problem of margin call in their trading account. So I will tell you how you can control the problem of margin call in forex check these points:

    images(3).jpg

    1.Keep Yourself Cool:
    The first thing to remember is to keep yourself together. Don't do anything impulsive like empty your account right away, or start revenge trading. Before you can even make any decisions you need to get a clear head and figure out what really happened to you.

    2.Figure out your mistakes
    After your margin call, you should sit down and figure out what your major mistakes were leading up to the event. Did you over trade, use too much leverage, Revenge trading, fight the trend? Maybe you neglected to set stop losses. Whatever the mistakes, you need to figure out exactly where you went wrong so you can avoid it when you get yourself back together and being trading again.

    3.Track the every trade
    The next step is to track every trade you make and declare a reason for the trade as you make it. At the end of the month, you can review your trading decisions and see if you are trading with clarity and direction. If you find mistakes, you can be more conscious of them for the next trading month.

    Conclusion: I think getting margin call is not any kind of failure in this business. The main thing is that you go through the process of figuring out what went wrong and use that as a tool to rebuild yourself using more discipline. We are only human and feeling like a failure is a very emotional experience. Margin calls are not failures, they are learning experiences and they should be viewed as such.
    Source: _forextrading.about.com/od/tradingpsychology/a/margin_call.htm

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    Last edited by Gamer; 02-04-2015 at 11:14 PM.

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    Rookie rinaji's Avatar
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    Nice post ... mate, yap margin call is very depressing and stressful, but the margin call is not mean that we lost all of our capital, unless we use high leverage. This is different with stop out. But margin call is a serious problem for me, even I have ever cried when I getting a margin call. lol

    And you're right that margin call are not failures, failure is the case only if we give up and leave forex. If we still have the motivation to continue our efforts in this business, then we still have the chances to gain success.

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    Rookie erespe's Avatar
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    Every trader at first must have experienced a margin call even stop out. But Hukam, I emphasize these two terms because the condition may be different if we understand the meaning of both.
    Supposedly, the situation margin call is not scary if we still have funds ready to be injected into the account that is experiencing a margin call. The situation would be much different if we did not have a reserve funds that is ready to be injected, so can result in stop out.
    The point is, when experiencing a margin call, the trader is still possible to save the account if he has a reserve funds that is ready to be injected so that enough to hold floating loss.

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    margin call is the lowest position for traders, and many of us got frustration and depression for it, and how if they face this continuously ? of course, there is something wrong and need to fix it as soon as possible,
    many times i got margin call, and even every months at the first years, and then ended with some loses in hands, but, it was not a bad thing for me although i suffered, but it opened my mind to keep learning and fix everything

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    Getting margin call is always unexpected for any trader. But I think it can be avoided. Just divide your equity in 4 parts. Use one portion for trading. Suppose you have 200$ in your account. Then take 50$ for trading. Next open a trade so that overall you can have 1000 pips roam for the trade. In that case you can open 5 cent lot or maximum 10 cent lot though it is little bit risky. Use SL and TP at least 50 pips away from current position. If you can maintain this for long time certainly you will not face margin call for long long time.

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    That is a good one sir, the margin call has really affected traders in this market. Some traders are having it every time they fund their trading account. And I think that emotion is really entering such trader and making them to lose control. What you have written above would be a great help for traders in this forum.

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    Right sir margin call is not any kind of failure at all but its very hard to solve the problem of margin call its because of greed and high risk trading mostly we not able to control the problem of margin call in forex market. You shared very good points Mr. Hukam we should figure out our mistakes and should track our forex trading records on daily bases

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  8. #8
    Registered user Hukam's Avatar
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    Right most of trader's not able to make money because of emotional trading. Margin call and stop out is one of the worst things which can happen to anybody in forex mostly new trader's affected by this problem. They invest money daily in their trading account but till evening they not able to make any money and loose their whole trading account

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    Margin call is always present in the forex market, and the chief reason for this is the fault of the forex trader. In light of real trading, margin call should be avoided by the trader, and this starts from the careful and protective of the forex trader.

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  10. #10
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    Quote Originally Posted by Hukam View Post
    Right most of trader's not able to make money because of emotional trading. Margin call and stop out is one of the worst things which can happen to anybody in forex mostly new trader's affected by this problem. They invest money daily in their trading account but till evening they not able to make any money and loose their whole trading account
    margin call is like a ghost for traders and continue it with stop out, every traders do not want to get this experiences but in facts, there are many traders who always meet and miss it,,,hehe,,,include me, too many margin call that i have got, and too many promise i keep in mind to avoid it,
    but, it was not a problem and as long as our profit is bigger than losing

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