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Why let yourself be margin called?

  • #21
  • Nov 22, 2007 5:29am Nov 22, 2007 5:29am
Quoting Tiki Trader
With no math..... you should not be doing forex... period !!!
But why there are lots of people cannot make money in Forex still like Forex?
  • #22
  • Nov 22, 2007 5:37am Nov 22, 2007 5:37am
Quoting mijamoto
FOREX IS NOT SCIENCE! FOREX IS ART FOR ME! {Offensive word removed } THEORY USE INTELIGENCE AND INSPIRATION
Well, everyone their own opinion.

To me, to beat Forex you need develop your own Economics of Science. You need to develop a Theory how price/psychological moves. A theory is not "Simple". It is hard to develop.

I have already my own theory or a "system" how to own Forex.
My theory could be wrong.... But so far I am great!
  • #23
  • Nov 22, 2007 6:18am Nov 22, 2007 6:18am
Quoting vinnie99
But why there are lots of people cannot make money in Forex still like Forex?
Losing money can be exiting. People do like to gamble even though they are losing. Most of traders know how to make money by following a system, but they don't follow the system because when you enter a trade without any system the rush of uncertainty makes us nervous and exited. Following a system and making money is rather boring compared to that.

This is human nature. This is why most traders lose money, not because they are bad traders but because they choose to buy exitement for losing trades.
  • #24
  • Nov 22, 2007 6:25am Nov 22, 2007 6:25am
Quoting im7i4z
Losing money can be exiting. People do like to gamble even though they are losing. Most of traders know how to make money by following a system, but they don't follow the system because when you enter a trade without any system the rush of uncertainty makes us nervous and exited. Following a system and making money is rather boring compared to that.

This is human nature. This is why most traders lose money, not because they are bad traders but because they choose to buy exitement for losing trades.
LOL

People do like to gamble even though they are losing; This is why most traders lose money, not because they are bad traders but because they choose to buy exitement for losing trades.

Ok...
  • #25
  • Nov 22, 2007 6:53am Nov 22, 2007 6:53am
It's all about risk management :-)
  • #26
  • Nov 22, 2007 8:11am Nov 22, 2007 8:11am
Because forex is like gambling for those people... !!!

But anyone who really wants to make money in forex, knows, that it is hard... it is not a get rich quick thing. It is a long slow process. It is a long road... you will have to follow it if you want to make it...

For those of you who think forex is an "art" and are trading 20% on a trade............ well, good luck !! Look around here... do you see any of those guys trading like that who have been here more than a few months ?? NO, they have all had their margin calls, and could not afford to add to their $ 300 starter accounts... and now they are painting pictures out on a street corner somewhere...........

And again, if you cannot do the simple math to figure out what % risk you are trading, you just have not seen what forex is all about...

Quoting vinnie99
But why there are lots of people cannot make money in Forex still like Forex?
  • #27
  • Nov 22, 2007 8:18am Nov 22, 2007 8:18am
YES !!! Losing money is exciting... !!! But not many people have endless money to lose.

When you go to Las Vegas, you already know you will most likely lose... you take enough money with you to have fun for a bit... then you come home. That's fine... it was entertainment... like spending money at the movies... But if you go to Las Vegas with the idea, and worse yet, the NEED to win the BIG ONE... you are going to be sorely dissapointed !!! And those are the people who go to Las Vegas, and then come home and cannot pay the rent...!!!!!!!!!!!




Quoting vinnie99
LOL

People do like to gamble even though they are losing; This is why most traders lose money, not because they are bad traders but because they choose to buy exitement for losing trades.

Ok...
  • #28
  • Nov 22, 2007 8:27am Nov 22, 2007 8:27am
Anything I have said here isi not to put anyone down... !! If you are new, you need to know the truth... The idea is just to help you understand that your money will go away VERY fast...

If you risk large amounts... more than 1-3%... you will be gone SOON

If you can't do the math... you will be gone SOON

If you EVER get more than one margin call on a REAL account... you will be gone SOON
  • #29
  • Nov 23, 2007 9:05am Nov 23, 2007 9:05am
Quoting Tiki Trader
Anything I have said here isi not to put anyone down... !! If you are new, you need to know the truth... The idea is just to help you understand that your money will go away VERY fast...

If you risk large amounts... more than 1-3%... you will be gone SOON

If you can't do the math... you will be gone SOON

If you EVER get more than one margin call on a REAL account... you will be gone SOON
Hear Hear! Well said!

GF
  • #30
  • Nov 23, 2007 9:47am Nov 23, 2007 9:47am
The math required to avoid margin calls can be done quickly and in your head.
After a very short time trading you shouldn't even have to use math to avoid margin calls. Your trading plan alone should keep you miles away from that territory.
Getting a margin call is a result of closing your eyes, letting go of the wheel, and seeing how far you can go until something happens.
  • #31
  • Last Post: Feb 16, 2022 4:05am Feb 16, 2022 4:05am
Quoting billflet
The math required to avoid margin calls can be done quickly and in your head. After a very short time trading you shouldn't even have to use math to avoid margin calls. Your trading plan alone should keep you miles away from that territory. Getting a margin call is a result of closing your eyes, letting go of the wheel, and seeing how far you can go until something happens.
I know traders who use the margin call as there stop loss.
Say you have a 100k portfolio
Place 1k into an account. Trade half a lot and let it run for your profit. The market maker cant hunt your stop loss but spends a few minutes trying to email or call you (doubt a 1k account gets a call but hey). Market may have turned back around to enter profit or called you. So you lose 500. So its like 0.5% loss on 100k account.
(The other 500 will still be there as it was used for margin deposit)
Hope that adds a slight twist to open minded trading techniques
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