20 Closely Guarded Trading Secrets

I hope you have learnt some lessons from my mistakes covered in the 8 Mistakes that must be avoided if you do not want to get mush dreaded Margin Call at all ( or again if you got one before). I had one and almost had another before I started applying the lessons you are about to learn in this edition of your blog forex fixed odds special. Meanwhile, Margin Call is a call from your broker to send more money to restore you from a position that has moved against you.


The following 20 closely Guarded Secret will go a long way in helping you avoid getting Margin Call as a forex trader. Please, learn and apply them in all your trading decisions and activities t truly conquer the forex market. The have been presented in no particular order. Simply learn and apply them for better trading results so you’ll be in the market for a long time.

1.                Never expose more than 30% of your Account in trading: One of the safest things for you stay long enough in the market is to only expose a maximum of 30% or even less of your account in trading. For a trader who has opened a forex account means trading with a maximum of 3 (30k account) mini lots or 0.3 in volume in the MT4 platform each time you place trade. But for a beginner in will recommend 0.1 in volume (micro lot) minimum and a maximum of 0.1 in volume (mini lot). But some aggressive traders expose up to 50% of their account.


2.                Never risk more than 3% of your Core Equity or Free Margin. I have written on this before in a previous edition, but we just cannot over-emphasize some of these points. This tells you where to set your Stop Loss Order still with your $1000, risking 3% means setting a stop loss of $30 (3% x 1000 = 30) if you can please, make it 2% and as your account grows reduce it to 1% or even less.

Applying thins to your trade, you need to calculate how many pipes of 1 mini lot or 3 mini lots will amount to $20 or $30 or even less with higher example I choose to risk 2% ($20) trading 10% ($100) of my $1000 account. My stop loss could be placed at 20pips away from my entry price. Remember that 1 pip in a mini lot is $1. Assuming that current price for EUR/USD is at 1.4500/1.4502, and I decided to buy; my entry price will be 1.4502 (Ask Price and my Stop Loss should be 1.4482 (20pips) 1.4502 – 1.4482 = 0.0020). The last decimal digits with real figures (20) now become my profit in pips. What this point means is that you should also never trade without stop less.


3.                Never allow Maximum Draw on your Account. Draw Down occurs when lose and your account balance drops from the original balance, if a trader loses $500 out of $1000 he or she had started with, they have just experienced or had 50% Draw Down. This can be called maximum Draw Down. It is maximum because it will not take them only 50% to get back to their former balance of $1000, No, they will need to make a profit of 100% of the remaining balance ($500( in order to get back to the previous $1000. You should know that it will be more difficult if not frustrating to get this back to the previous balance given the kind of spirits that operate in these money markets (FOREX). Greed, fear and anxiety will begin to take their toil on the trade at this time. I will treat this in more detail sometime in future.


4.                Never trade without being sure of the Min or Primary Trend to the Market: Some traders ignorantly buck the trend. Bucking the trend means taking trading positions against the main trend of the market. There are traders who have so developed themselves with great strategies for counter trending the market. Please, if it is not your style, never try it. always find the primary trend and go with the trend when the market provides opportunity in that direction. The popular slogan in the forex market says “The Trend is your friend, until it bends,”


5.                Never use a broker you do not understand their policy and operating platform. Make sure you study, ask questions and understand you broker’s operating policy trading platform and other activities, Ask other traders you know about their experiences (if any) with the broker you want to use. You may also get more information about brokers at www.forexpeacearmy.co/brokerreview s. Also make sure your broker of choice is registered and regulated in their country of operation. find out from them what their margin call policy is all about and make sure you abide by the policy agreement.


6.                Never calculate trading profits and losses in Dollars. Calculate in PIPS. when you calculate in dollar amounts, you often out put yourself under unnecessary pressure.


7.                Never Borrow to trade. Borrowing for trading will mount pressure on you. To succeed as a trader, you must of necessity avoid anything that will put you under unnecessary pressure. Some pressure can lead to serious mistakes. Avoid them all means.


8.                Never take on the management of the trading funds of others when you have not managed yours profitability. Many today only think of how they will make and not what they could possibly surfer in the market if things go wrong. The quest to manage others accounts when they have not turned in a dime profit in their own accounts have become the bane of many trader today. Beware of this error.


9.                Never Promise High and unrealistic Returns to Clients if you are into funds management. I have heard some claim they will pay clients 20% to 50% monthly on funds deposited. This will only unnecessary pressure and anxiety on you. Please, find out what is obtainable and which works for you as well as suits you lifestyle.


10.           Never invest to trade any money that will in any way alter your current lifestyle. Do not sell your shop or shares, or put your salary from which you will take care of your family into trading. There will be much pressure on you that will make you to always feel you should trade any time the pip moves.


11.           Never use slow or snail internet service for trading. You wouldn’t want to develop heart attack because your connection is misbehaving when you are about taking a crucial trading decision or already in a crucial trade you need to monitor.


12.           Never trade without Power Supply Back-up (The fear of PHCN becomes the beginning of wisdom in trading). You need to have a back-up like a good UPS or inverter and/or a generator on hand to avoid disappointments that can lead to several other disappointments.


13.           Never Over-trade: Sometimes, trading more than 2 positions at a time could on its own constitute over-trading. So is trading when you have reached your daily, weekly or monthly goals as well as exceeding your plan to expose only 30% risking only 2% as stop loss.


14.           Never confuse yourself with multiple currencies trading. I advice you first master the characteristics of one currency pair, particularly a mild pair like the EURUS. Trading many currencies at a time can make you ignore margin call warnings without being aware of it.


15.           Never let your losses exceed your Free or usable Margin (or Core Equity). For example: Assume that you have opened your trading account with $1000. Your Usable margin at first will be $1000 before taking any trade. If you take a trade with 3 mini lots, which is 0.3 volumes ($300), your Used Margin now is $300, while you Usable Margin or free Margin is $700, say your losses are now $800 or more, you will immediately get a Margin Call and all your open position will be closed.


16.           Never let you Margin % fall below your broker’s required threshold. Ask to find out from your broker. When you have open trades, always monitor what is happening to your margin. Some Margin calls occurs when your margin falls below 30% some brokers call at 20% just find out from your broker! speak or chat with them today about margin call.


17.           Never be unaware of when a News Event will be released. Even if you are not a News Trader, always make sure you daily or weekly monitor the Economic Calendar to sure you daily or weekly monitor the Economic Calendar to know when news events or Fundamental Announcements will be made, If you are not a news trader, let the calendar be a tool that will guide you to know when to close or trail all open positions. At least 10 to 20 minutes before major Economic Announcements is deal. Always check up with www.naira4gold.com for News Events schedule.


18.           Never trade without reviewing your trading goals and plans. It is not enough to have trading plans and goals. Always review them. They will help you know when to stop and evaluate your activities. so you don’t blindly run into Margin Calls.


19.           Never Trade without the right mindset. There is a mindset every trader who desires to succeed in trading must possess. If you lack this mindset be prepared for untold hardships in the market. Greed, fear and Anxiety are a trio I call the 3 dreaded demons in the forex market where the god of mammon holds sway. You need the mind called the mind of Christ to avoid being tormented by these demons. Yield you heart to God completely and He will direct your affairs. That’s the absolute truth.\


20.           Never take a trade without praying. You need direction from God, especially when it comes to knowing the trade of the market and joining the trend early. You need Divine guidance. Never do anything in your power and might alone.


If you will take to these instructions, I believe you will certainly avoid the much dreaded Margin Call in forex trading.

This is to your trading success!


  1. hey,this is Boris Cichocki,just found your web-site on google and i must say this blog is great.may I share some of the writing found in this site to my local buddies?i am not sure and what you think?in any case,Thanks!

  2. uzomaeze says:

    hey boris you can go ahead and use this article as long as you state the owner of the article

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