Wednesday, 1 October 2008

Do Not Get Margin Calls

Margin calls
Due to the financial "Bailout" uncertainty that has been going on for the past few days in America, STOCK MARKETS across the world have been having the biggest degree of volatilities that has ever been recorded in the history of the Equity Markets -- traders have got to be extra cautious if they intend to stay active in this type of environment. Already, some traders have incurred heavy losses and some have gone completely bust as a result of the markets wild swings within the past few days. Remember Stock Market will take no prisoners!

Good traders will always try to adopt the following rules if they want to stop getting "Margin Calls" from their brokers
or getting wiped out completely:

  • Do not be tempted to open large positions if you can help it.

  • As soon as your position is in profit, move up your stop losses accordingly.

  • Do not add to your losing positions.

  • Stay away from the markets, if you have not traded in such environments before.

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