I'm a totally new trader. I have been playing with a demo account, because I'm currently learning and trying to understand the markets a bit more. Before I move on to real money trading (on a micro account) I want to build a system that works for me.
Now that my intro is out of the way I will ask my question:
I have a 50k demo account (now values at 36k). I have been using max leverage on my trades. I keep running into an issue where I have a stop loss set lower than the market value but because of a flux in the market (that I WOULD have waited out) my position was sold out for me (before hitting my stop loss). I think I understand this as a margin call. My question is, does reducing your leverage increase the amount of flux that your account can handle before being forced out? I have been playing around with some 1min charts and 1hr charts and just kind of messing around with the 1m chart trends but primarily betting the direction I feel the 1h chart is going to go, this way I can hold out if the 1m bet goes south its still in my 1h range. (probably a bad strategy, but like I said... I'm very new and just trying to learn what I can at this point.)
It seems to me, that if I'm being forced out of my positions because they are on a current loss then over using leverage is bad. I think my problems have been with this over leveraging the account.
Now that my intro is out of the way I will ask my question:
I have a 50k demo account (now values at 36k). I have been using max leverage on my trades. I keep running into an issue where I have a stop loss set lower than the market value but because of a flux in the market (that I WOULD have waited out) my position was sold out for me (before hitting my stop loss). I think I understand this as a margin call. My question is, does reducing your leverage increase the amount of flux that your account can handle before being forced out? I have been playing around with some 1min charts and 1hr charts and just kind of messing around with the 1m chart trends but primarily betting the direction I feel the 1h chart is going to go, this way I can hold out if the 1m bet goes south its still in my 1h range. (probably a bad strategy, but like I said... I'm very new and just trying to learn what I can at this point.)
It seems to me, that if I'm being forced out of my positions because they are on a current loss then over using leverage is bad. I think my problems have been with this over leveraging the account.