Spike! yes big spike, really scary… nope I don’t think so. My hand was empty and my attention was not in trading when this happen. Then you’ll be surprised when this happened… again, nope.
As someone who already tasted nastiness of margin call, it will be foolish to repeat same mistake. Einstein said:
Insanity: doing the same thing over and over again and expecting different results.
If you ever got margin call and experience it second time, that’s fine because you’re still alive and nobody become expert in several margin calls. But hey, if you maintain margin call rate continuously, I’d join Einstein and say you’re insane, get a life!
There’s only 1 way to avoid margin call, remember only 1 way and such a boring way but proven (I’m not saying profitable, but at least its certain way to avoid margin call). Read until end of this article to see the way.
EUR/USD & GBP/USD Review
EUR/USD moving up sharply but later moving down sharply too, if we see from start of day – end of day. Nothing really changed. Something big could have happened, but I don’t know the result. (I’ll know later after browsing around and read news).
We are here not to satisfy our needs to know more, but we are here to take out of market what little we can live with. Reviewing chance to trade, I already marked 4 points where trade possibly taken.
A – Short trade, yes if I’m there I would’ve already taken the trade and result in losing trade (Stop loss blue channel).
B – Long trade, Highly possible another losing trade, but I’ll never take it as price move really fast.
C – Short trade – After B, trade at C surely have higher chance to be successful and it move at least to blue and red channel where we can take profit.
D – Short trade – similar to C
GBP/USD same trait as EUR/USD yesterday, here are the review:
A – Short trade, almost reach blue channel target line. End up with loss if not present.
B – Short trade, less likely taken because of 1 fast candle moving to balance line. But if taken it’ll be another loss
C – Long trade, this one also less likely taken with same reason as B.
I’m not discussing after C because I forgot to market D point Lol, but if you take any trade it should be short.
Now as I promised in the middle of this article, what is the only way to avoid margin call? the answer is sound trading plan with stop loss mentioned before any trade taken. All of the risk already calculated and we already know if it failed we’ll loss $x.
Sounds lame, but remember 1 think, we are here not for flashy things, we are here to make profit, as long as we remember that, we’ll move to right direction. Happy green pips.