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Understanding Forex Leverage Margin Requirements and Trade Size 2018

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Understanding forex leverage, margin requirements and sizing trades for successful forex trading
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Text Comments (12)
Jun (1 month ago)
Hi, really understood yr presentation. Thank you so much.
Shirley Omburah (2 months ago)
Mindy Yost (2 months ago)
Thank you! That really makes my day when I know I have helped someone with understanding somewhat complicated things. Cheers, Mindy
Zorro Zorro (1 year ago)
madame, do you have email add?
Mindy Yost (1 year ago)
No, but contact me via email for other options whereby I can help you with your trading. Cheers, Mindy
Zorro Zorro (1 year ago)
madame, do u do copy trading program?
Mindy Yost (1 year ago)
Thanks for asking.  Yes, I can be reached via email at: [email protected] I also have a website: www.MindyYost.com
Erick Fenstermaker (1 year ago)
I love how you explain things. I have a couple Question. 1). Does pattern Day Trading have anything to do with Forex? 2). Let's say I have a trade go really bad. Over 500 pips in the wrong direction. Can I just leave it alone until eventually the market comes back? Or will it get cancelled at a certain point?
Mindy Yost (1 year ago)
There are only 2 ways to lose money when trading forex. The WORST way is to reach a "Margin Call" which is when you run out of money in your account to manage the open positions you have that are ugly. The second way is to CLOSE TRADES FOR A LOSS because when you close a trade for a loss, then that money is GONE. A negative open position is just an ugly number - it is not an actual loss unless you close the trade WHILE it is negative. You will be reimbursed for the Margin Requirement you put up as a deposit to enter the trade, but the LOSS from the trade is money lost. By hedging your trades when they have the possibility of going very ugly, you essentially stop the bleeding of the "usable margin" in your account. That way you still have money to make additional trades with so that when the ugly trade comes back to profitability you will be able to close it without having taken any loss at all in the account. Hedging is complicated, but it works every time. It is also something I teach my mentoring students in great detail.
Erick Fenstermaker (1 year ago)
I guess I dont fully understand how my account could lose equity until I actually end the trade in the negative.
Erick Fenstermaker (1 year ago)
I appreciate the response. Pattern day trading is a law that says I cannot make more than 3 or 4 trades a week on margin if I dont have 26k in the account. I know the market fluctuates over time so my thought was simply this. if my trade goes bad which most at some point do then I can just wait it out and lose nothing when the market comes back.
Mindy Yost (1 year ago)
Hi Erick, Let's take Question 2 First - NO NO NEVER let a trade go 500 pips ugly before you take evasive action! When you have a trade that goes 100 pips ugly, you need to start mitigating the loss from that trade. The easiest way to do that is to hedge the trade with an opposite trade and then it won't matter how ugly the original trade goes because you have stopped the erosion of Equity in your account from that trade. I offer classes to teach people how to do this - check my website - www.MindyYost.com . But once you have stopped the trade from sucking dry your Equity, then, yes that ugly trade can go as ugly as it wants to and I have had situations where they went far more than 500 pips ugly - but the fact is with forex that what goes up, goes down and sooner or later any trade in forex will be "good" it is just a matter of "when is later"? As for "Pattern Day Trading", honestly I'm not familiar with what is exactly meant by that because I am self-taught in my trading but I assume that it means looking for recurring patterns of price action. This would be applicable in forex, but you have to remember that because of the leverage in forex, you can actually lose a lot of money on what look like relatively small moves. This is why I have found the best way to assure that your trades will be profitable in a short time is to only trade when the price action is in an over reactive state - trading where the price should "not" be trading, because this is when the price will generally come back into it's "comfort" zone quickly. I also teach programs on trade selection - again check my website for this information: www.MindyYost.com Thanks for you comment. Cheers, Mindy

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