ilmscore | Forex Leverage: 90% Of Beginners Make This Mistake When Trading With Margin...

Forex Leverage: 90% Of Beginners Make This Mistake When Trading With Margin...

Published: 2021-01-27
Status: Available | Analyzed

Predictions from this Video

Total: 6
Correct: 0
Incorrect: 0
Pending: 6
Unrated: 0
Prediction
Topic
Status
Beginners who don't understand margin should avoid trading on a five-minute chart.
"the next way is to stop trying to trade a five-minute chart if you don't even understand margin"
Trading Strategy
Pending
The speaker experienced confusion and lost money trading on very short timeframes (like 5-minute or 1-minute charts) when they did not understand margin.
"i was so confused trying to trade tiny time frames five minute chart one minute chart when i first started because i didn't even understand margin"
Trading Strategy
Pending
To avoid issues related to margin, consider switching from a five-minute chart to a four-hour chart.
"and the way to fix that is let's say instead of trading a five minute chart you jumped out to a four hour chart"
Trading Strategy
Pending
On a 4-hour chart with a 50 pip stop loss and a $10 risk, each pip would be worth $0.20.
"with a 50 pip stop loss if we want to risk 10 then how much does each pip need to be worth that would mean that each pip would need to be worth 20 cents"
Trading Strategy
Pending
To achieve a 20 cents per pip value (with a $10 risk and 50 pip stop loss), a trader would need to use 2,000 units of currency, as 1,000 units (a micro lot) are worth 10 cents per pip.
"so if each pip needs to be worth 20 cents we already discussed this one micro lot is equal to 10 cents per pip and how much is a micro lot 1 000 units of currency so at this point we would need 2 000 units in order to place this trade"
Trading Strategy
Pending
Increasing the trading timeframe and the stop-loss size are strategies to avoid the 'insufficient margin' error.
"this is another way to avoid the insufficient margin situation is by doing nothing more than increasing the time frame you're trading on increasing the size of your stop loss"
Trading Strategy
Pending