How do you prevent Margin call?

[venkiaries61]

if you dont want margin call then strically follow money management rules...
dont open trade in high lot size...

yes, i agree with you. we should have to make money management and follow that. And also stop loss is the main concept to follow. we have analyze thoroughly and place the position with stop loss.

[vicky]

yea we should improve our psychology but at the same time we should always be careful not to misuse the leverage.
whenever we trade big volumes with small capital,we should be more careful.

I am fully agree with you . only misuse of leverage can kill our account whatever the amount there and have to leave revenge mentality and also have to leave quick recover mentality for this i loss many and if we able to do that then i think its possible to prevent MC .

[s19]

if you dont want margin call then strically follow money management rules...
dont open trade in high lot size...

[zoomfire]

I think there is nothing that we can do to prevent Margin Call except to improve our psychology and to use good
money management and good risk management. Our good risk management will prevent it (I used SL Strategy)
but our psychology will determine it too.

yea we should improve our psychology but at the same time we should always be careful not to misuse the leverage.
whenever we trade big volumes with small capital,we should be more careful.

[loserbynature]

no.. high leverage not harmfull your account , its wrong perseption, you should consider for avoid the MC is :

- don't open more transaction
- Reduce your risks with SL
- if you floting mines, close unprofitable orders
- and most important is don't open deal with big size of lots

exactly true, I agree with your all points. Leverage is something that provides opportunity to earn more by utilizing less capital. Leverage is not harmful if we follow your all points.

[cumil]

high leverage and high volume are surely harmful in my experience a good money management system can do everything to stop MC (after all i think that's main purpose of MM itself) . and i decides my SL based on my lot size rather than from leverage.

no.. high leverage not harmfull your account , its wrong perseption, you should consider for avoid the MC is :

- don't open more transaction
- Reduce your risks with SL
- if you floting mines, close unprofitable orders
- and most important is don't open deal with big size of lots

[ganguly]

I think there is nothing that we can do to prevent Margin Call except to improve our psychology and to use good
money management and good risk management. Our good risk management will prevent it (I used SL Strategy)
but our psychology will determine it too.

[denira]

high leverage and high volume are surely harmful in my experience a good money management system can do everything to stop MC (after all i think that's main purpose of MM itself) . and i decides my SL based on my lot size rather than from leverage.

high leverage if you ask me personally it's not a problem but the problem is the use of open positions for the excessive leverage that makes it very dangerous

[shibilyt]

I think high leverage is not dangerous but high volume is dangerous. You should follow the rules of money management and do not place you SL higher than 2% or 2.5% of your capital. If you follow this rule high leverage can not harm you.

high leverage and high volume are surely harmful in my experience a good money management system can do everything to stop MC (after all i think that's main purpose of MM itself) . and i decides my SL based on my lot size rather than from leverage.

[pinpin]

yes , i agree with you...
never use more than 3% from equity to open a position...
with only 2% or 3% you can give your position chances if your position floating...

yes, with 2 or 3%, we would be easier to restore lost our money in commerce
and I guess it's not too heavy for us to do