Ahem... There's a Mr. Grim calling...something about the reaping. I think it's for you.
Personally, I am far too stingy to wait for a margin call. Don't misunderstand. I have many losing trades. If I can see that my trade decision is bad, I am out. There will be more set-ups on another day.
Shadow said:
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I feel that the "typical person" should get Margin called(no offense if you have). I say typical because you hear it all the time - what if you would have put a lot of money down on that one horse that was 18:1 and made all that money. As soon as I hear that I just shake my head and say "yeah but what if he would have lost."
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I've heard similar "long shot mentality" expressions. Your example brings to light one of the critical differences between trading and gambling. When you place a bet, you put down your money and await the result. When the event concludes, you either collect your winnings or tear up your ticket. When you enter a trade, you place your money at risk and then have to make a second choice to exit your trade. You can make your exit choice by using a SL/PT strategy or by your discretion. Alternatively, you can ignore the reality of the information the market is giving you and wait for a margin call. Decision by indecision.
No margin calls for me recently. I don't think I've had one since the late 90's when Greenspan announced an unexpected rate cut as part of the plan to break the Asian currency crisis. I was short S&P's and they ripped...and kept ripping...and ripping...and ripping.
Margin call! I liquidated. Immediately. No matter how well capitalized that account was, there was no way the trade would ever have worked out. Ouch! Oh, and thank yo so very much for reminding me. Yeah, thanks a load for that...
Margin Call?
. That's probably almost as bad since it's like running up a mudslide. I know this though, if you trade many currencies at once, and your leverage isn't large enough......... MC! - Hey where'd my positions go? That's the money management part of trading. I will say this, my first week trading live I would have gotten margin called for sure if my leverage wasn't so high. Of course I only put $300 in my account.....pfff. I tend to sorry I used to overamplify my emotions (trading has toned that down) so if I would have gotten margin called I would have flipped. When I took a loss that demolished my profits I snapped. and it was only like 30 pips...oh boy. But I think that when you lose alot / get margin called, the lessons learned can develop you tenfold. But those that quit after that happens may never become the great traders they could have. I feel that the "typical person" should get Margin called(no offense if you have). I say typical because you hear it all the time - what if you would have put a lot of money down on that one horse that was 18:1 and made all that money. As soon as I hear that I just shake my head and say "yeah but what if he would have lost." I am risk adverse in nature - the thought of even getting into trading would seem impossible for a person like me - but this is what I am meant to do bar none. Just thought I'd give you my view pipgod. It is tough to get responses to these questions and most people look in newbie island, all there is is cricket chirps in forextown. One of these day's we'll revive it. Later, best and have a good one eh!
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