In the forex market, we often hear that to maintain a trading account so that we don’t have to make a margin call, we have to maintain the money management. Actually, how do you manage good money management? It’s because money management is closely related to the capital we deposit and the number of trading positions we open. In the meantime, before we proceed, you may go to http://www.arabforex.pro/en/saudi/ to find the best forex broker in Saudi.
Now for the parameter indicator of whether our money management is good or not, we can use this margin level. The trick is that every time we open a position, try to make this level of margin not less than 1500% to avoid margin calls.
The point is this if we have opened a position in the Saudi forex market, then try to make a margin level above 1500%, if it is still far above 1500%, say 9022.93%, then we can still open positions again. However, if the margin level is below 1500%, then we should not open positions again, because of the possibility of the account experiencing a very large margin call.
The way not to open positions after the margin level reaches 1500% is to do other positive things, don’t keep looking at the monitors watching prices because our psychology will be disturbed and will violate the trading plan. Of course, before leaving the monitor, don’t forget to install stop losses first, as other professional Saudi forex traders do.
In this money management, the Saudi trader’s discipline is required. Never open a position again if the margin position is below 1500%. Margin level management will only function to hold the correct price for a moment and after the correction, it is expected that the price will continue its trending. The point is this, on a large time frame the price is experiencing an uptrend and we open a Buy position, but after we open a buy position, the price opens to continue the upward trend, instead, there is a price reversal because the position is saturated. In this case, the price reversal that occurs is a momentary correction and after completion of the correction, it will continue the trend on the large time frame.