#ulog 028: Margin call

Source: Pexels

The #ulog that I am writing today is not my experience recently, but rather a lesson from the past. I would like to share it with everyone since there are more and more people trading margin.

It was a busy night

When I was studying for my post-degree, I got into Forex trading. By chances, I had won several small trades, without any knowledge. Then, the gambling instinct inside me told me that; there was nothing wrong with a 100x leverage, so let's give it a try.

And I did.

I won $700 over night with an investment of only $400. After winning that money, I involved in more trades with the hope that I could get more and more.

That was when things go salty.

I got a margin call in the next morning while trying to get more money. It was a shock to me, as I had lost everything in just an hour after winning.

After that lousy experience and other losses in the Forex market, I had quit and continued my study. I have received many questions from the community whether or not they should trade Forex or anything that involves margin. In my opinion, the trading margin is not a bad thing, but it's about how you handle your trade with disciplines.

I lost in crypto, too

There is nothing wrong to hide your weakness. Last year I got into crypto, and I had lost also. It was due to my lack of knowledge of the market that had lead to a severe loss. However, after each time, I had learned more and tried to avoid that mistake.

Right now, I'm back to margin trading again, but only for BTC, with a lot of disciplines in mind. I will try to minimize the risk while maximizing the gain. If you are trading margin, think about your goal, your emotion, and your trading strategies beforehand.